Alarm over foreign tax cheats

China Business Weekly reported investigators are coming down hard on suspected tax cheats after officials in Guangdong did a sweep of 9,465 foreign-funded enterprises and found only a small portion of them playing by the rules. "Almost 90% are making money under the table,'' chief investigator Huang Zhaoming was quoted as telling the weekly. Cheats were reportedly engaged in transfer pricing, namely recording revenue and profit in their non-China affiliates, many located in Hong Kong, to avoid China's higher tax hit.