Subscribe free to our newsletters via your
. Space Industry and Business News .




POLITICAL ECONOMY
China state TV targets property firms over unpaid taxes
by Staff Writers
Shanghai (AFP) Nov 25, 2013


Chinese property developers owe 3.8 trillion yuan ($623 billion) in taxes, the state broadcaster said, firing a shot across the bows of real estate firms amid anger over high housing prices.

In a weekly consumer programme, China Central Television (CCTV) said property firms should have paid more than 4.6 trillion yuan in land taxes from 2005 to 2012, but authorities collected only 800 billion yuan.

The report, aired Sunday, cited lawyer Li Jinsong as the source. Li, of the Beijing Yitong Law Firm, has previously raised similar allegations but has never before been given such a high-profile platform in China's state-run media.

In recent months media condemnations of companies in China -- including several multinationals -- have accompanied official action against them.

The CCTV report did not give a total for the number of firms alleged to have failed to pay taxes, but said they included 45 listed Chinese property developers, traded both domestically and overseas.

In China developers must pay tax on the increase in value of their land holdings when they sell properties on the land or transfer the land lease itself.

Chinese Internet users condemned real estate companies for greed, blaming them for unaffordable housing, while developers said Li's methodology was flawed.

High property prices are a major source of discontent among citizens, and authorities have sought to control their rise while at the same time pledging to provide low-cost housing.

Chinese home prices jumped 10.69 percent year-on-year to 10,685 yuan per square metre in October, according to an independent survey by the China Index Academy.

"Property developers force up home prices to such high levels, it's time for them to surrender some of their profits," user Lili277 posted on a weibo microblog, a Chinese equivalent to Twitter.

But the head of one of the accused firms threatened to sue CCTV.

"I only know the stupidity and ignorance of CCTV after seeing this report," said Ren Zhiqiang, the chairman of Huayuan Property, on his widely-followed microblog.

"I'm studying how to publicly prosecute CCTV," he added.

Li, the lawyer, defended his claims on his own microblog.

"I only know your stupidity and ignorance in the field of taxation after reading your posts," he shot back to Ren.

"Please consult your chief financial officer before posting."

Li could not immediately be reached for comment by AFP.

The report said commercial property developer SOHO China owed 6.4 billion yuan of land taxes, while China Vanke, the country's largest homebuilder by sales, owed 5.8 billion yuan.

Neither company immediately commented on the allegations.

Huayuan closed up 1.89 percent in Shanghai but Vanke fell 1.03 percent in Shenzhen, China's other stock exchange.

In Hong Kong, Agile -- which the report alleged owed 8.3 billion yuan, and which also did not comment -- dropped 2.57 percent and SOHO China slid 0.43 percent.

CCTV has previously taken aim at other companies over consumer issues in China, including technology giant Apple over its warranty polices and German auto firm Volkswagen over quality.

Earlier this year, the government investigated foreign companies over prices in the baby formula and pharmaceutical sectors, amid a bribery probe into Britain's GlaxoSmithKline.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








POLITICAL ECONOMY
Ukraine risks financial meltdown after break with EU
Kiev, Ukraine (UPI) Nov 22, 2013
Ukraine is risking a financial crisis of monumental scale by ditching the EU as it faces a cash crunch before imminent debt repayments, analysts said Friday. Ukraine received warnings from senior EU officials and the United States after it dropped its EU membership bid, European Observer said. U.S. officials cited difficulties Ukraine could face obtaining credit from the Internat ... read more


POLITICAL ECONOMY
Overcoming Brittleness: New Insights into Bulk Metallic Glass

SlipChip Counts Molecules with Chemistry and a Cell Phone

NASA Instrument Determines Hazards of Deep-Space Radiation

$3.3 billion Canadian mining project scrapped

POLITICAL ECONOMY
Intelsat General To Provide Satellite Services To US Marines

Manpack Radios in Arctic Connect with MUOS Satellites Orbiting Equator

Self-correcting crystal may unleash the next generation of advanced communications

Northrop Grumman Receives Contract to Sustain Joint STARS Fleet

POLITICAL ECONOMY
Spaceflight Deploys Planet Labs' Dove 3 Spacecraft from the Dnepr

Arianespace orders ten new Vega launchers from ELV

NASA Commercial Crew Partner SpaceX Achieves Milestone in Safety Review

ASTRA 5B lands in French Guiana for its upcoming Ariane 5 flight

POLITICAL ECONOMY
CIA, Pentagon trying to hinder construction of GLONASS stations in US

GPS 3 Prototype Communicates With GPS Constellation

Russia to enforce GLONASS Over GPS

How pigeons may smell their way home

POLITICAL ECONOMY
Peru boosts defense with tactical aircraft, helos

Algorithms + FA-18 Jet = Vital Testing for SLS Flight Control System

Strathclyde students launch experiment into stratosphere

It's Typhoon vs. Rafale in Emirates jet joust

POLITICAL ECONOMY
Chaotic physics in ferroelectrics hints at brain-like computing

Nature: Single-atom Bit Forms Smallest Memory in the World

Virtual Toothpick Helps Technologist 'Bake' the Perfect Thin-Film Confection

New way to dissolve semiconductors holds promise for electronics industry

POLITICAL ECONOMY
Satellites to probe Earth's strange shield

Free access to Copernicus Sentinel satellite data

China launches remote-sensing satellite

Evidence of Destruction in Tacloban, Philippines

POLITICAL ECONOMY
Madrid street-sweepers call off strike: union

Everyday chemical exposure linked to preterm births

Albania refuses to host Syria arsenal destruction

Protests grow in Albania against Syria weapons destruction




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement