China tax office plans to monitor foreign firms' profits

Chinese authorities plan to put a system in place to monitor the profits of foreign companies to end alleged tax evasion, Bloomberg reported, citing a statement posted on the State Administration of Taxation’s website. Microsoft was required to pay more than US$150 million in China last month, a person familiar with the matter said; meanwhile, Xinhua announced on November 23 that an unnamed foreign company had paid RMB840 million (US$137 million) in back taxes and interest as well as more than RMB100 million in annual disbursements. Authorities will also tighten management of tax practices by Chinese companies abroad, according to the administration’s statement.