DIGITAL LIFE

Chinese communist government will fight local tax evaders with AI and big data

China has taken the fight against tax evasion to another level. Authorities are preparing to introduce a new tax surveillance system that is being called a "giant X-ray machine" capable of collecting massive amounts of personal and financial data.

With the construction of the Golden Tax IV system, information from owners, executives, banks and various market regulators will be connected and accessible for tax authorities to scrutinize.

China's tax authorities have vowed "not to show forgiveness" to tax evaders this year, writes the South Morning China Post.

Local tax agencies are stepping up efforts to punish people who break the rules, including major online content producers, who have been fined hundreds of millions of dollars.

Taxes are one of six key approaches to achieving "common prosperity", a new initiative led by President Xi Jinping to reduce economic and social inequality.

Launched in the 1990s, the first iteration of China's Golden Tax system was an electronic invoicing initiative for value added tax (VAT).

In its current version, Golden Tax III integrates national and local tax data. The yet-to-be-launched fourth phase will monitor business activities in unprecedented detail.

The new smart tax system will be powered by big data, cloud and artificial intelligence technologies over the next five years.

China has not announced a release date for the updated system, although fiscal analysts expect it to be introduced this year.

mundophone