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Same Object, Different Valuation

Sany Group acquired Sany Heavy Industry in 2008. People found in the statement of acquisition announcement, however, that the acquired entity had been valued at three different values. While its normal that different valuation approaches lead to different valuation results for the same valuation object, some ‘wise’ managers exploit the valuation practice merely in order to find the result that best suit their needs.

 

Big Four Auditors Brace for Big Changes in China 

The foreign joint venture arrangements signed in China 20 years ago by KPMG, Deloitte and Ernst & Young expire later this year. PwC's joint venture expires in 2017, but it is also involved in restructuring discussions. The Ministry of Finance (MOF) is using the expiry milestone to force the global auditing giants to form special group partnerships, which in theory would mean all partners would need to hold notoriously tough Chinese accountancy qualifications.

 

Anti-tax Avoidance to Focus on MNCs

China’s anti-tax avoidance efforts has contributed 23.9 billion yuan to the national taxation revenue in 2010, of the amount, 20.8 billion yuan came from administrative processes, 0.7 billion yuan came from service processes and the rest came from investigative processes. The State Administration of Taxation (SAT) is developing a comprehensive indices system covering related transactions and same period information based on the Golden Taxation project in order to monitor the profitability of multinational corporations by industry and by region.

 

Personal Income Tax Irregularities Hurt Law Integrity

According to a recent media report, all province-level administrations (exclude Hong Kong, Maucu and Taiwan) have adopted irregular personal income tax preferential policies. The irregularities mainly center on refund and exemption.

 

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

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