China Missing out on Billions in Lost Taxes

China is failing to collect billions in taxes from some of its wealthiest citizens, hampering efforts to tackle a widening gap between rich and poor.

Beijing’s tax collectors have been vexed by wealthy residents who are able to launder money and move it abroad through casinos, fine art buys and fake trade invoices — practices that result in lost tax revenue.

Closing the gap between the urban rich and the hundreds of millions of poor citizens is a priority for Beijing. Last year, the government announced plans to hike the minimum wage in many parts of the country and limit salaries at state-owned enterprises.

CNN

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