According to a recently published English translation of a notice from China's State Administration of Taxation (SAT), the SAT will implement a lottery system to select taxpayers for audit each year. The system will randomly select about 20% of major taxpayers each year, with no major taxpayer selected more than once every 5 years. It will also select no more than 3% of non-major taxpayers and no more than 1% of non-corporation taxpayers each year.
The lottery system will exclude taxpayers a…