China Planning Risk Assessment Monitoring for Special Tax Adjustment Purposes

As part of its plans to implement new special tax adjustment rules ({News-2015-09-23/P/2- previous coverage}), China is planning to establish a new risk monitoring system that will influence the tax authorities response to compliance failures. A risk assessment will be based on an examination of a taxpayer's tax filings, contemporaneous transfer pricing documentation, and internal control tests of related transaction compliance.

Taxpayers considered generally compliant and low-risk will rece…