China Buys Or Makes Australia Suffer Heavy Taxes Sun Shou

According to foreign media's recent reports, Australia may lose 1 billion Australian dollars (about US $763 million 300 thousand) in tax revenue on behalf of China.

According to the industry consultancy data, there are 40 thousand Chinese purchasing agents in Australia, which sell 40 thousand Australian dollars to 100 thousand Australian dollars each year, including infant formula, vitamins and cosmetics.

According to Benjamin Sun, head of ThinkChin, a consultancy, most of the purchasing agents did not declare their income. Sun said: "the payment of Chinese consumers to purchase is RMB, and the purchase is for Australian dollars and then for shipment."

It's another headache for the Australian Chancellor of the exchequer, Scott Morrison.

Scott Morrison is responsible for supervising the main companies such as Google, BHP Billiton and Rio Tinto.

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Purchasing began in Europe. They bought Gucci handbags and other luxury goods for the middle class consumers in China.

As Chinese are getting more and more

Demand for dairy products, health products and other Australian products is also rising.

Buying through WeChat operation purchasing procedures, they generally charge 50% of Australian product prices as purchasing fees.

At the same time, there are similar problems for the buyers and sellers of eBay and other platforms, and tracking purchasing pactions is more difficult for Australian Tax Bureau (ATO), because general purchasing pactions occur in China.

Drum said that the growth of the purchasing industry indicates that Australia has a potential tax crisis. But we should note that Australia had the concept of personal exports. "Considering the rising demand for high quality goods and the development of digital communications, it is not surprising that the number of purchasing agents is increasing."

Paul Drum, head of the CPA Australia policy of the Australian accountants' Union, said that based on the number of Chinese purchasing agents in Australia and their annual revenue, the tax revenue was missed to $1 billion, of which the Australian floating tax system and tax threshold have been taken into account.

Because pactions take place almost in the offshore bank account on behalf of Australia, local taxes are very difficult to track.

Tax. Peter Janetzki, partner of Ernst & Young, a service company, said: "the fact is that funds are mainly circulated through foreign bank accounts and do not flow into Australia, but this does not mean that there is no need to declare personal taxes."