On August 1, 2014, TEI completed its first project of direct tax advocacy with China’s State Administration of Taxation (SAT), when it filed comments regarding draft administrative measures on the Chinese domestic law General Anti-Avoidance Rule (GAAR). The comments focused on how the draft measures inappropriately expand the scope of the GAAR, unfairly subject taxpayers to two independent substance-based inquiries when special tax adjustment rules also apply, and contain overly expansive document production requirements.
The comments were prepared by TEI-Asia Chapter board members and the TEI Asia Tax Committee, whose Chair is Lisa Zheng. Patrick Evans, TEI Chief Tax Counsel, coordinated the preparation of the comments. We expect to continue our advocacy efforts in the region to further develop TEI’s reputation as a valued stakeholder.