China Wealthy Individuals Tax Enforcement Intensifies with Special Teams

China wealthy individuals tax enforcement is intensifying, with authorities establishing specialist teams to track and collect liabilities from some of the country’s richest people, Bloomberg reported.

The teams reportedly include government officials, inspection specialists and regulators, with some assigned to individual billionaires.

The initiative is intended to strengthen authorities’ ability to examine sophisticated financial structures established with assistance from tax advisers and lawyers.

The move follows Beijing’s July decision to impose individual income tax on assets held through offshore trusts and income generated by them, increasing pressure on wealthy Chinese families to review international structures.

Some affected individuals have reportedly sold assets, borrowed funds or restructured offshore holdings to meet tax liabilities.

Haidilao co-founder Shu Ping recently sold HKD2.75bn (USD351m) of shares after her family faced an unexpected tax bill, illustrating the potential liquidity implications of tougher enforcement.