QUOTE(yhtan @ Apr 25 2013, 12:29 PM)
The last time i visit China, i got a shock that my client pay off its supplier by cash of few hundred thousand

I asked them why didn't use Cheque, he said to evade Government Service Tax/Value Added Tax

Even money remitted to China also kena tax

The only legal 'tax' they pay is with 'Fa piao'. A lot of transactions is done without 'Fa piao' hence escaping tax. Even dining in resto, we have to request 'Fa piao' when we pay otherwise the bill not claimable...

. Interestingly the 'Fa piao' is like lottery.. can scratch to reveal prizes one. Maybe that is how the govt encourage people to demand 'Fa piao'.... I once kena 100 RMB.
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Fapiao (�发票) are official invoices, registered at the local tax bureau, which are used as some kind of final proof-of-purchase of a good or service. They often come in a bilingual version (albeit with some signs of Chinglish).
The government introduced (possibly modelled after Taiwan) in 2002 a new series of fapiao, where prizes (cash value) can be won just by scratching the "prize area" on every fixed-quota fapiao. Machine-printed fapiao for restaurants, hotels and other entertainment areas also have the "prize area".
Every new fapiao has two scratch areas: the "prize area", and a lesser-scratched "password area". The "prize area" may be detachable; don't detach this area at any costs if you have just won a prize! It is best to keep this area undetached. The password area is more useful for determining if this is a real fapiao or not.
I have seen supplier pay with whole gunny sack of reminbi...

I once have to carry 6 figure USD to pay off supplier as they only wants cash...
This post has been edited by gark: Apr 25 2013, 12:38 PM