China property firms dispute CCTV report on unpaid taxes

[HONG KONG] Chinese property developers have dismissed claims by China Central Television (CCTV) that they owe massive sums in unpaid land taxes, pitting some of China's most powerful businessmen against the influential state-owned broadcaster.

Listed companies including Gemdale Corp, BBMG Corp and Beijing North Star Co Ltd, all named in a CCTV report that aired on Sunday, denied claims that they are among firms that avoided paying as much as 3.8 trillion yuan (S$775 billion) in taxes due.

The property developers said the report by CCTV was based on confusion between provisions in their accounts for future tax bills and actual tax payments already made. The president of one of the companies, Hua Yuan Property Company Ltd's Ren Zhiqiang, said in a posting on an Internet microblogging site that he's considering whether to pursue legal action against the broadcaster.