20 Dec 2021

(Yicai Global) Dec. 20 — Soho China’s shares closed at their lowest level in almost six years after the Chinese office developer’s unit in Beijing was fined CNY709 million (USD111.2 million) for tax evasion.

Soho China [HKG: 0410] ended down 3.6 percent today at HKD1.63 (21 US cents), the stock’s lowest closing price since March 2016. The shares are down 29 percent this year.

Beijing’s tax bureau recovered the non-paid taxes and imposed a late payment fee of 2.5 times the amount on Jianhua Real Estate, according to a statement posted on the bureau’s website on Dec. 17. Jianhua evaded around CNY198 million in taxes as it faked reports on land value increment tax and corporate income tax for its Soho Shangdu project, the tax bureau said.

Beijing-based Soho China said on the same day that it had received the decision and it would pay the taxes, late fee, and fine on time.

The tax authority said on Oct. 22 that it had received a report about the developer’s tax evasion and launched an immediate investigation.

Jianhua Real Estate was founded in 1994 by Pan Shiqi, who is the company’s chairman and legal representative, according to corporate information platform Tianyancha. Soho China owns 60 percent of the firm.

Editor: Futura Costaglione, Xiao Yi