China’s rich face threats such as “common prosperity” and “tax increase” after the 20th National Party Congress.
Golden Tax Phase IV system will be launched. The authorities will launch a comprehensive tax audit. It is known as the strictest golden tax in history. Experts say this will block people’s livelihood and stifle the economy.
On November 7, the announcement published on the Shenzhen Municipal Taxation Bureau website mentioned the Golden Tax Four Phases system. The tender amount is nearly $276 million (2 billion yuan).
The fourth-phase construction project of the natural person tax application platform will be established. This system focuses on high income. High net worth will be improved.
This system will fully use new-generation information technologies such as big data and artificial intelligence. It upgrades from “controlling tax by ticket” to “governing tax by number” to comprehensively monitor business activities.
Wang Jun, director of the State Administration of Taxation, has publicly stated that the “Golden Tax Phase IV” will be completed by the end of this year.
Shenkun, a financial commentator, said that this system would definitely be available to the whole country soon. There may be some internal resistance. The system will focus on high-income individuals.Xie Tian, a professor at Aiken School of Business the Golden Tax Phase IV will help increase the Chinese government’s fiscal revenue, but it will kill the economy.