China has always had a legal framework for taxation. Why is it now increasing enforcement?

Taxation has emerged as a buzzword across China in recent months, with an overhaul of tax policy sitting firmly atop Beijing’s fiscal agenda. Regulators have deployed a broad suite of stricter tax enforcement measures – new rules governing overseas trusts have been paired with stepped-up tax collection on gains derived from cross-border equity investment and insurance products. These shifts in tax enforcement stem from multiple factors, and they mirror a notable shift in the policy mindset of...