China to Try New Income Tax Reputation Shaming Scheme for Individuals

By in

China are piloting a new method of ensuring compliance with taxation by morally shaming residents in a new system whereby individual taxpayers will be assigned an ‘income tax reputation’. Such score or ranking will be used to calculate rewards and penalties for compliance or otherwise accordingly.

The Chinese tax authority will record the following taxpayer data:

An individual’s reporting status.
Any itemised deductions.
Non-compliance records.
Additionally, historical cases of serious violation will also be included on a public blacklist of offenders. Taxpayers with sound historical compliance records may receive improved services that are enticingly being called “green paths” for residents by different government agencies.