It’s a commonplace that Americans and Westerners are the technical and business innovators, and that Chinese are good at imitation. But sometimes it’s the reverse. I recently learned of a Chinese tax policy that I fear the IRS may want to emulate someday (if they are not already–I’m not a tax expert). It’s come to my attention that when a foreign company owns a Chinese company qualified to do business in China, the Chinese Tax Authority (the analog of the IRS) requires the Chinese company to use Chinese-government approved accounting software which is directly linked to the tax agency’s computers–every day, in real time, the company’s financial and other data that is entered is directly accessible to and ported to the tax agency’s system. Res ipsa loquitur.
Source link: http://archive.mises.org/5153/chinese-innovation/