New Wave of Tax Recoveries Hits Chinese Listed Companies, Exceeding 9 Billion Yuan

(Central News Agency, Taipei, June 8) A new wave of concentrated tax recoveries for listed companies has recently emerged in China's A-share market. According to Chinese media reports, at least 20 listed companies disclosed announcements related to tax recovery in May and June cumulatively, with the total related amount exceeding RMB 20 billion (approximately NT$ 93 billion). The earliest tax audits date back to 2020.

According to a report by Jimu News on the 7th, since June, more than ten A-share companies including Aisidi, Jianye Shares, Hongchang Electronics, Kaishuo Technology, Hongyuan Pharmaceutical, Senlin Packaging, Lvdiao Feng, Renxin New Materials, Zhongjian Huanneng, and Xinghui Shares have disclosed announcements regarding tax recovery and payment of late fees. These cover multiple mainstream industries such as electronics, chemicals, pharmaceuticals, environmental protection, and packaging.

According to the report, the total amount related to tax recovery for the above companies is approximately 485 million yuan. Among them, Aisidi had the largest scale of recovery, with a combined total of 308 million yuan in corporate income tax and late fees, accounting for 82% of the company's full-year net profit in 2025, significantly impacting its performance.

The report indicates that these tax recovery issues mostly stem from companies' self-tax audits, annual tax settlement adjustments, and historical tax loopholes. The tax audit cycle can be traced back as early as 2020. This round of concentrated tax recovery primarily involves companies voluntarily paying back taxes and late fees. The involved companies have not yet received administrative penalties from tax authorities, with the core focus being compliance rectification and error correction.

The report also noted that in May, 14 A-share listed companies disclosed announcements related to tax recovery, with the total amount of back taxes and late fees paid exceeding 2 billion yuan.

The report points out that multiple rounds of concentrated tax recovery events have triggered severe volatility in the secondary market. Not only have the market capitalizations of leading companies shrunk significantly, but the stock prices of small and medium-sized listed companies have also generally come under pressure.

Industry analysts point out that the disclosure of tax recovery information by listed companies is a direct reflection of the continuous tightening of domestic tax supervision and the comprehensive expansion of the scope of audits and routine self-inspections. Annual tax omissions and compliance loopholes that were previously overlooked by companies are gradually being exposed under normalized supervision.

Chinese media reported last year that Chinese tax authorities had demanded tax recovery from multiple listed companies, even conducting tax audits spanning 30 years. This move has been questioned as a way for local governments facing fiscal deterioration to generate revenue through tax recovery. (Editor: Chen Kaiyu / Lu Jiarong) 1150608