A SHANGHAI resident was held by police for forging an official tax document setting out an alternative income tax system that won the support of the public.
The local resident, surnamed Li, was held in local police custody for 15 days for forging an official tax document and disturbing social order, the State Internet Information Office said.
The bogus document, known as “Bulletin 47,” claiming to be from the State Administration of Taxation, suggested rules that could reduce income tax individuals pay on annual bonuses.
It was well-received by the public after it began spreading online on August 11, a time when China’s public was discussing forthcoming income tax reform.
Bulletin 47 was also cited as an official document by various state-owned media, including the Xinhua news agency and CCTV, before China’s top taxation authority denounced the document as a hoax on August 15.
Li was among three people punished for spreading rumors online and misleading the public, the office said. The others were detained and warned respectively for posting fake news about a murder and an air force fighter crash.
Web users expressed their disappointment at hearing of Li’s detention, as the rules detailed in the fake document were considered fairer than the actual tax regime.
The Bulletin 47 proposals avoided scenarios where those who earn more in bonuses before tax than colleagues end up, after tax, with less.
The fake document proposed a more comprehensive graduated system.
“Although the document was a fiction, it was praised by all of society. I feel sorry for the person responsible, and the taxation authority should listen to the public,” a web user said.
After dismissing Bulletin 47 as a fake, the State Administration of Taxation on August 16 released an official new system of taxation on annual bonuses. This lowered the tax rate but did not tackle unfairness.
This was introduced on September 1, along with a new tax relief program that raised tax threshold for Chinese workers from 2,000 yuan to 3,500 yuan and cut tax rates for people with middle and low income.
“Recent individual income tax reform has undoubtedly promoted taxation knowledge to a much wider general public,” said Joyce Xu, a Deloitte tax partner.
“The increased interest in the tax regime by the general public will encourage a transparent and fair tax administrative infrastructure and ultimately contribute towards a fairer tax system.”
Source:Shanghai Daily