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2007 Assessment

China: Integrity Indicators Scorecard

China: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	75
60	In practice, are tax laws enforced uniformly and without discrimination?	25
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	63
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	50

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments:

References: State Administration of Taxation, established by the State Council of People's Republic of China

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: A 50 score is given because on the one hand, the tax collection agengies in most places are overstaffed; on the other hand, the professional tax collectors are only very few.

References: 1): "Three Challenges the Tax Collection Agency Is Facing after the Post-Agricultural Tax" Xinhua News, March 13, 2006

2): Human Resources Division "Enhancing the Capacity of Tax Collection Agency" Fengtai Local Tax Bureau, 2005 [ LINK ]

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments: Tax agencies will keep certain percentage of taxes collected for their own use, thus funding is not a problem.

References: 1): "The Exemplary Tax Agency Employee" People's Daily Internet Version, July 30, 2007 [ LINK ]

2): "Several Government Agencies Are Audited and There Is Misuse of Funds" Renmin Wang, Nov. 13, 2004 [ LINK ]

Peer Review Comments: There have been no reports on problems of regular funding to the tax agencies in China.

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: It is a serious problem, for example, that the tax rate for foreign investments is 15 percent, while the rate for domestic investments is 25 percent. At the same time, firms with close relationships with the government generally have tax reductions or other preferential treatments. Thus a 25 score is given.

References: 1): "To End The Different Tax Rate for Domestic and Foreign Firms" Xinhua News, Dec. 24, 2006 [ LINK ]

2): Xu Chixian "An Analysis on the Problems of Tax Collections" Xianning National Tax Bureau, December 2006 [ LINK ]

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments:

References: The General Administration of Customs set by the State Council of People's Republic of China

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments:

References: 1): " The Announcement of Mixing Customs, Shanghai" June 17, 2005 [ LINK ]

2): "A story on the 30-Minute Proposal" Renmin Zhengxie Bao, March 4, 2006 [ LINK ]

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments:

References: 1): "Several Government Agencies Are Audited And There Is Misuse of Funds" Renmin Wang, Nov. 13, 2004 [ LINK ]

Peer Review Comments: The customs and excise agency is another type of government organ that enjoys regular funding from the government.

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments:

References: 1): "Anti-Corruption Measures Are Effective in Customs" China Customs official website Jan.26, 2007 [ LINK ]

2): Xu Junze "China Customs Executive Corruption Analysis" Northestern University Graduate Thesis, 2004 [ LINK ]