Foreign firms gear up for new tax rules as China vows crackdown

Beijing

THE Chinese government's vow to increase tax scrutiny of foreign companies has sent firms rushing to tax advisors ahead of the implementation of new rules designed to rein in cross-border tax avoidance.

Tax professionals and business lobbies alike have welcomed the move as an attempt to bring China's tax regime more in line with international standards.

But it has also caused concern that authorities could use the policy, which came into effect on Feb 1, as a political tool to put the pi…