The Real Estate Tax Law Summit Forum of 2011 was held by East China University of Political Science and Law, Dacheng Law Firm Shanhai branch, and Shanghai Law Society fiscal law branch, etc. at Changning school District of East China University of Political Science and Law from June 4 to June 5. The guests came from 6 different countries and areas including Mr. Kirkj.Stark, Deputy Dean of law school of University of California-Los Angeles.
Participators discussed tax regime concerning the real estate industry profoundly, they covered the latest foreign and HK, Taiwan tax policies, the theoretical research of real estate tax and the tax law practice of the mainland area. Liu Tianyong gave the speech of independent legal status and identity of Real Estate Company, and stated that the regulation should start from clearance of the relationship between parent/subsidiary companies, and also concentrate on rights protection of taxpayers.
Liu Tianyong was officially invited as a Guest Professor of RUC Lawyer College on July 6, 2011. At this day, Me. Liu gave a lecture of Company Tax Management and Tax Plan, which received broad appraisement.
RUC Lawyer College
Renmin University of China established its Lawyer College, the first one founded operated by a university in the country. The Lawyer College aims to provide practical legal education and professional training courses to PRC legal professionals and law school students who intend to practice law after graduation. It will also collaborate with similar institutions overseas to provide international training programs, helping broaden PRC lawyer’s international exposure and improve their abilities to provide high-end legal services and products.
The RUC Lawyer College has appointed Zhu Mingshan, deputy director of the committee for Internal and Judicial Affairs of the NPC Standing Committee and former vice president of Supreme People’s Court, as honorary dean, veteran lawyer Xu Jian as dean and professor Han Dayuan, dean of RUC Law School, as director-general of the Lawyer College Council. The Lawyer College is an institution under RUC Law School.
High-income earners to pay more
Source: Global Times [04:39 April 19 2011]
By Fang Yunyu
The government will generate more revenue by strengthening taxation management on high-income earners and covering loopholes in the existing system, the State Administration of Taxation announced Sunday.
High-income earning expatriates working in China, middle and senior management staff involved in industries such as real estate, securities and private-equity funds, as well as film and music industry professionals and celebrities who generate income from advertisements and performances, are all on the key list of tax collection tightening practices, according to the taxation authority.
The announcement came as China’s Standing Committee of the National People’s Congress prepares for official meetings later this week to review the draft amendment on the personal income tax law.
With inflation at stubbornly high levels, expectations are that the starting level to be taxed on personal income may be raised from 2,000 yuan ($306) to 3,000 yuan per month.
“Enhancing taxation supervision on high-income earners and raising the cut-off point are actually two sides of a coin, which all aim to realize fair taxation,” said Liu Tianyong, a partner at Beijing-based Hwuason Law Firm, which specializes in taxation law. Liu is also a guest professor at Beijing’s Central University of Finance and Economics’ school of taxation.
Liu said supervising the personal income data of all residents, which involve huge numbers of people that are scattered across a vast geographic area, may prove difficult for tax authorities.
“And our current income taxation system is in need of (a broader range) of different tax rates,” he said.
He cited as an example that the current guidelines impose the same tax rates on a person that makes 8,000 yuan in monthly income as they do a resident that makes 20,000 yuan per month.
The Ministry of Finance announced back in February that China’s total tax revenue grew by 23 percent over 2009 figures to 7.32 trillion yuan ($1.17 trillion). While personal income tax revenue rose by 22.5 percent to 483.7 billion yuan, accounting for 6.6 percent of total tax revenues.
According to the 2009 “tax misery index” released by Forbes magazine, China ranked second in “imposing the harshest taxes,” right behind France. But when it comes to corresponding social benefits, China still has a long way to go, compared to the West.
Hwuason Lawyers, China’s first specialist tax law firm, has continued its investment into the development of the young tax law profession in China through a series of initiatives over the past few months. Since November 2009 Hwuason has held a series of speeches to law students at the law schools of the top universities in northern China to explain the appeal of the practicing tax law. Tax, until very recently, has been a profession quite separate from the legal profession. In light of the growing sophistication in China’s tax laws, Hwuason has recognized the growing need for tax practitioners with legal training. One of the aims of the firm has been to convince young lawyers of the attraction of this particular legal specialty.
This latest speech tour comes after the release of a book by the firm on the practice of tax law in China entitled, The Practice of China’s Tax Lawyers. The book detailed the experiences of the firm’s lawyers since the firm was established in 2005. The next step for the firm will be to release a video on Chinese tax law, which will include lectures (some in Chinese and some in English) from the firm’s lawyers on various aspects of practicing tax in China.
Liu Tianyong, Hwuason’s Managing Partner, comments that this push “is about attracting the best young lawyers to the tax specialty, whether it be with Hwuason or another firm, in order to increase the stocks of China’s tax lawyers.” Hwuason sees the development of the profession and the firm as being tied together. Once the business community realizes the additional skills that tax lawyers can provide, and the need for such skills in a sophisticated business culture, this will be beneficial to the firm. In this sense Hwuason’s motives are not “entirely altruistic” says Liu. However, the firm is investing substantial resources into this campaign and, Liu notes, there is “no promise of a return on this investment.” Liu recognises that his goals are very much in the long term. This is something that will take “5 years” says Liu. The firm is working closely with China tax luminaries, such as Liu Jianwen and Tang Gongliang, in developing the profession in China and can rightly be termed a pioneer in this respect.