BEIJING BAIRUI (SHANGHAI) LAW FIRM
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Tax Consulting
 Tax Consulting
 
The Chinese tax policies are very complex and change very frequently. Even an experienced tax expert may face new issues, not to mention those who know nothing about it.

To avoid unnecessary inconvenience or work load (for example, to provide the related certificates and/or documents) the employees responsible for tax matters may choose to ignore such policies although if applied properly they can save huge amount of tax cost for the company.

As an external legal adviser, we have no such worries. Our mission is to save taxes for clients, no matter how time-consuming or complex the process is. This may cause the employees some inconvenience, but it can benefit our clients immensely.

In China, courts have the final say in the lawsuits, but decisions on tax-related disputes are in fact mainly made by the administrative authority. This is because the tax administrative authority understands tax-related laws and practice better than court, given the laws in this area are very complex (unlike other laws that are compiled in statutes, the tax related laws in China are issued in decrees, orders, or edicts). This makes the tax laws in China more complex.

In addition, the tax decrees change very fast, maybe one decree is replaced by another order that is rarely known. For example, there are close to 40 edicts related to value-added-tax. A non-expert is not able to follow all of the changes. On the other hand, because judges have relatively less tax knowledge than the administrative authority (China does not have tax courts that specifically deal with tax-related issues), judges intend to admit evidences presented by the administrative authority or just simply accepts its views in case there is no objection.

Therefore, if not represented by lawyers that know tax, such defendants may face unnecessarily heavy punishment by the administrative authority and/or in court.