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Tax reform considered to remedy loophole: Minister

By Qiu Bo (chinadaily.com.cn)
Updated: 2014-03-06 11:52

China hopes to reform individual income tax rules to prevent families being motivated to divorce to avoid tax when selling second properties, Minister of Finance Lou Jiwei said on Thursday.

Lou said at a news conference for the 2nd Session of the 12th National People's Congress that the ministry may consider charging a comprehensive tax instead of the fixed 20 percent individual income tax for such families.

Lou admitted some absurdity is created by the defect in the current tax system but also suggested tax authorities could develop more efficient methods to collect tax if the law in certain circumstances is difficult to enforce.

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