Chinese authorities are demanding wealthy individuals and companies double-check their taxes for unpaid liabilities in a move that threatens to further dent investor confidence in the world’s second-largest economy.
Tax officials in recent months have asked wealthy individuals and companies to carry out “self-inspections” of their tax payments and cough up any deficiencies, as local governments hunt for revenue to refill coffers depleted by a property slump.
The tax drive comes as Beijing prepares to announce the details of a large fiscal stimulus this week that is expected to focus on restoring the finances of local governments, many of which are struggling to pay suppliers and employees.
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