Compliance executives should take note of a spate of new tax rules from the Chinese government for two reasons: first, the nuts-and-bolts headache of obeying the laws; and second, for the deeper message Chinese regulators are telegraphing about how they will handle U.S. companies doing business there.
And get this: That deeper message might actually be one that companies like.
At the top of the list is a document called Caishui 59, issued April 30 and known in English as the “New Reorganization Rules.” The document bars tax-deferred restructurings within a group. That’s bad news for companies active in China, which often ...