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Under the prevailing tax regulations in China, the conditions for corporate restructuring reliefs are either over-stringent or highly ambiguous. The 12th Five Year Plan has brought hope that things might get better on this front because the plan encourages industrial consolidation to improve domestic enterprises’ global competitiveness. The Chinese tax authorities may therefore see the need to relax or clarify the rules, point out Grace Xie, Vincent Pang and Abe Zhao of KPMG

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