Overview

Recent events in China seem to point to a potential trend for more tax litigation.

While none of us have a genuine belief that China will become a tax litigation hotbed like Brazil and India overnight, tax litigation may finally become a relevant concept for multinational companies in China.

It has been three years since the Enterprise Income Tax Law of the People’s Republic of China (EIT) took effect on January 1 2008, but the full consequences of the tax reform are still filtering through to various areas of business planning and activity in China.

Between the development of procedures to allow for potential forms of administrative review and even tax litigation and the increasingly aggressive scope and implementation of Chinese tax law; China would appear to be a logical jurisdiction for greater tax disputes.

Baker & McKenzie looks at the prospect of increasing tax litigation in China.

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