Tax & Spend
China Hands Firms Decades-Old Tax Bills, Hinting at Funding Woes
- Companies told to pay tens of millions of yuan in back taxes
- Economic slowdown, property slump straining local finances
This article is for subscribers only.
Local governments in China have asked several companies to pay tax bills dating back as far as the 1990s, underscoring their need for funding due to the uneven economic recovery and persistent housing slump.
A number of listed firms have said in exchange filings in recent months that they’ve gotten government demands to pay tens of millions in back taxes and warned investors this could impact their earnings.