Chinese Government crackdown on gift voucher bribe culture
In an attempt to prevent the misuse of prepaid gift vouchers worth tens of thousands of yuan for bribes, money laundering and tax evasion, the government is attaching a "real name" security system to their purchase. The state council issued a notice to ministries including the People's Bank of China, the Ministry of Supervision, the State Administration of Taxation and the National Bureau of Corruption Prevention, demanding that they come up with tamper proof monitoring mechanisms to monitor organizations that sell gift vouchers. It is also recommended that voucher issuers register the names of buyers who buy prepaid cards with a total face value higher than 10,000 yuan.
As per the new regulations , institutions will not be able to buy prepaid gift vouchers worth more than 5,000 yuan in a single purchase. Gift vouchers often lead to tax evasion apart from adding up to corruption. It is estimated that over 1 trillion yuan of prepaid gift vouchers are bought each year in China according to the China Commerce Association for General Merchandise sources.
As per the new regulations , institutions will not be able to buy prepaid gift vouchers worth more than 5,000 yuan in a single purchase. Gift vouchers often lead to tax evasion apart from adding up to corruption. It is estimated that over 1 trillion yuan of prepaid gift vouchers are bought each year in China according to the China Commerce Association for General Merchandise sources.