Authorities Suspect Jiangsu Mobile of Tax Evasion
21st Century Business Herald, 1/12/13
According to recent media reports, after opening an investigation into the Jiangsu subsidiary of China Mobile (NYSE: CHL; 0941.HK) in late 2012, the Jiangsu provincial office of the State Administration of Taxation now suspects Jiangsu Mobile of having exploited tax loopholes to avoid paying RMB 1 bln in taxes.
Jiangsu Mobile said in a January 12 posting on its official microblog account that it is submitting to an overarching investigation by the State Bureau of Taxation into tax receipt issues in the communications industry. The operator said that the investigation is still ongoing, and that media reports on the matter have been inaccurate.
A spokesperson for the Jiangsu office of the State Administration of Taxation confirmed that the office had found irregularities in its investigation of Jiangsu Mobile, but said no further details or specific figures could be revealed pending the conclusion of the investigation.
Should Jiangsu Mobile be found culpable for tax evasion, the operator will be liable for repayment of the amount owed, as well as a fine of between 50% and 500% of the amount, and any criminal liabilities involved.
Keywords: scandal law Jiangsu Mobile China Mobile tax wireless State Administration of Taxation CHL 0941.HK penalty
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