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China Daily Website

Chinese developers deny report on unpaid land tax

Updated: 2013-11-26 15:16
( Xinhua)

BEIJING -- Chinese real estate developers have dismissed a media report that claims they owe a massive amount in unpaid land taxes.

Listed companies, including Gemdale Corp, BBMG Corp and Beijing Capital Development Holding Co, on Tuesday denied a China Central Television report that claims they are among companies owing more than 3.8 trillion yuan ($618.89 billion) in total unpaid land value-added taxes from 2005 to 2012.

The real estate developers said the broadcaster's allegations were based on a "misunderstanding," which had confused provisions in their accounts for future tax bills with actual tax payments.

Ren Zhiqiang, chairman of one of the companies, Huayuan Property Co, refuted the allegations in a post on China's Twitter-like microblogging service Sina Weibo, saying part of the land value-added tax must be pre-paid at the time of a project's pre-sale, and the remainder can be settled according to the progress of the project.

Ren said he is considering how to pursue legal action against the broadcaster. However, Huayuan Property filed a statement to the Shanghai Stock Exchange on Tuesday, saying the company will not take further action for the moment.

 
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