China is preparing to clamp down on foreign companies trying to evade tax, a State Administration of Taxation (SAT) official told China Daily. SAT is reportedly focusing on a small group of foreign companies and implementing a more proactive approach that will require them to first submit their tax filings for preliminary assessments to familiarize tax inspectors with the nature of the their businesses and their accounting methodology. SAT said the preliminary assessment would help inspectors identify fraud early and weed out cheats from companies making honest filing errors.
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