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Chinese Real Estate Shenanigans – Bizarre Divorce & Remarry Scheme to Avoid Taxes Goes Trending

They divorced, wife-swapped, divorced, and remarried – all for tax evasion. Although Chinese media condemn the story, netizens applaud it.

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A bizarre report about two couples divorcing and ‘wife swapping’ in order to avoid paying taxes on their property transfer has become a popular news story of the day in China. While Chinese media denounce the tax-evasive real estate “shenanigans”, netizens have unexpectedly sided with the couples.

A story about two couples in Jinan, Shandong, who faked their divorce and did a wife-swap in order to evade taxes during a property transfer has become a top story on Netease, one of China’s leading online (mobile) news platforms.

The story started when couple A wanted to buy a property from couple B. They each ‘divorced’, after which the wife of couple A remarried with the husband of couple B. When ownership of their property was transferred, they divorced again, and couple A and couple B both remarried their original wives.

The comical divorce shenanigans were exposed when the case recently ended up in court. The Netease story about the couples was read 55,500 times within hours after its publication.

People in China have been divorcing to skip property taxes for years. In 2013, Chinese authorities implemented tougher taxes on home sales, as much as 20%. At the time, (international) media already reported about the following surge in divorces in cities such as Shanghai (Sweeney 2013).

Many Chinese invest their wealth in real estate – especially because property prices have been skyrocketing for years. Since divorce allows couples to split ownership of their property and then sell without having to pay those high taxes, there are those who opt for a ‘quickie’ – a no-fault, uncontested divorce. Once divorce and the division of real estate is complete, and the property has been sold, they can remarry.

In the Jinan case, the property was over 400 square meters big and worth 12 million RMB (US$ 1.9 million) when couple A wanted to buy it from couple B in the summer of 2015. Due to the size and prize, the Sina News reports, high taxes need to be paid to apply for the property’s transfer procedures.

In order to obtain the property rights in the smoothest and cheapest way possible, couple A came up with the idea to ‘swap wifes’ for the time being. Couple B divorced, attributing the property to the husband – who then married the wife of couple A. After that, husband B transferred the property to the name of his new bride, wife A, and then divorced her again only to let the two remarry their original spouses again.

The ‘divorce scheme’ to evade taxes, image published by Netease.

The deal was to transfer the first half of the money before the fake marriage, and then the other half when the ordeal was over. Eventually, however, their plan failed when husband B made a mistake in finalizing the paperwork before receiving the final 6 million. When wife A could not come up with the 6 million RMB, husband B took the case to court.

The court, however, was not sympathetic to the couples’ ingenious plans and revoked the transfer, and fined the couple 50,000 rmb (±$8000) each for their tax evasive ‘divorce and remarry’ construction.

Although the Netease news report, that was also (originally) published on Qilu Evening News (齐鲁晚报) and on Sina News, condemned the couples, saying that “marriage registration is no child’s play” and that “legal boundaries should not be crossed for one own’s immediate benefit”, commenting netizens unexpectedly applauded the story and sided with the creative couples.

“Is this illegal?”, a top commenter (8500+ likes) responded to the story: “This should not be called tax evasion, it should be called reasonable tax avoidance!”

Many commenters point out that since neither divorce nor remarrying is illegal, it is not the couples’ fault for making use of their legal rights – and that it is the Chinese property tax laws that are to blame.

Chinese authorities do not impose regular levies on homeowners just yet; individuals are only taxed when buying or selling property. Although China’s house property taxes, which are believed to tame the housing prices, will be pushed forward, it might take another three years before their implementation (Gopalan 2018).

“These couples are just as birds in the forest,” one Netease commenter writes: “They fly when the big tax comes.”

“What did they do wrong?”, many wonder.

By Manya Koetse and Miranda Barnes

References

Gopalan, Nisha. 2018. “Don’t Bet Your House on China’s Property Tax.” Bloomberg, March 8. https://www.bloomberg.com/gadfly/articles/2018-03-08/don-t-bet-your-house-on-china-s-property-tax-just-yet [11.4.18].

Sweeney, Pete. 2013. “Till taxes do us part: Chinese divorce to skip property tax.” Reuters, March 6. https://www.reuters.com/article/us-china-property-divorce/till-taxes-do-us-part-chinese-divorce-to-skip-property-tax-idUSBRE9250CY20130306 [11.4.18].

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Miranda Barnes is a Chinese blogger and part-time translator with a strong interest in Chinese media and culture. Born in Shenyang, she used to work and live in Beijing and is now based in London. On www.abearandapig.com she shares news of her travels around Europe and Asia with her husband.

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    Saedul JS

    November 18, 2019 at 10:26 am

    Nice post! This is very informative! Great job! Keep on posting!

    Family Lawyer Of Saskatoon

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China Insight

“I’m One of 1.4 Billion” Goes Trending as China’s Population Now Tops the 1.4B Number

China’s total population is up, but its birth rate has fallen to the lowest level.

Manya Koetse

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According to the latest numbers, China’s birth rate has hit a new low, but state media are instead highlighting the fact that China’s population has now surpassed 1,4 billion.

This Friday, official data, released annually by the National Bureau of Statistics, shows that the total Chinese mainland’s population has surpassed 1.4 billion at the end of 2019.

In light of this news, Chinese state media outlet People’s Daily launched the hashtag “I’m One of 1.4 Billion” (#我就是14亿分之一#), propagating a sense of unity among such a massive population.

This message was also reiterated by other accounts, such as the Shenzhen Police, that said: “We’re all one big family, our name is China, we have a lot of brothers and sisters.”

China’s Birth Rate Falls to Lowest

While People’s Daily is publicizing the 1.4 billion number, the annual statistics also show that China’s birth rate has fallen to its lowest since the founding of the People’s Republic of China.

Although only 14,65 million were born in mainland China in 2019, the death rate of the country was also lower than before – meaning that the total population number still went up from 1,39 billion to 1,4 billion in the last year.

One thread started by People’s Daily on Weibo received nearly 530,000 likes by Friday afternoon, with thousands of Weibo users posting a response to the latest numbers.

Many netizens responded to the news in a similar fashion, saying: “There are already enough people [in China] now, I don’t need to have children anymore,” or: “Good, there’s so many people, I don’t have to worry about having kids.”

China’s marriage rates hit a new low in 2019 after dropping year by year.

Over recent years, various trends in Chinese (online) media have highlighted the existing social issues behind China’s dropping marriage and birth rates.

The rising costs of living and the fact that many among Chinese younger generations “prefer to marry late,” are often mentioned as an explanation for China’s decline in marriage rates and the interrelated lowering birth rates.

But China’s so-called ‘leftover’ single men have also been pointed out as a “crisis,” with China having millions of more men than women of marriageable age – partly a consequence of the one-child policy and general preference for baby boys.

Although Chinese couples are allowed to have two children since 2015, the new regulations have not had the desired effect, with many couples simply not wanting a second child or not being able to afford it.

For some years, ‘leftover women’ were mentioned as a reason for China’s declining marriage rates; China’s well-educated, career-oriented, urban single women were sometimes singled out for making it harder for China’s unmarried men to find a wife because of their ‘choice’ to postpone marriage and family life. This has increased the pressure on China’s single women to get married, which has become a recurring topic of debate on Chinese social media.

Today’s responses on Weibo seem to indicate that many young people are still not very eager to have children. “Let’s not add to the population, it’s enough burden for the planet,” some say.

Others say the number of 1,4 billion make them or their action seem “irrelevant” and “tiny.”

There are also those with entirely different concerns about the number: “There are 1,4 billion in China now, and yet I’m still not able to find a boyfriend!”

By Manya Koetse
Follow @whatsonweibo

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China Insight

Top 10 Buzzwords in Chinese Online Media

From blockchain to hardcore, this is an overview of China’s media top buzzwords over the past year.

Jialing Xie

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Some of the expressions and idioms that have been buzzing in Chinese media the past year. What’s on Weibo’s Jialing Xie explains. 

Last year, we listed China’s “top ten buzzwords” for you (link), giving an overview of some noteworthy expressions on Chinese social media and in the media in 2018. Recently, the chief editor of the magazine Yǎowén Jiáozì (咬文嚼字) has again announced the “top ten buzzwords” in China of the past year.

Yǎowén Jiáozì, which literally means “to pay excessive attention to wording,” is a monthly publication focused on the Chinese language. Chinese (state) media have been widely propagating the magazine’s selection of the top words and terms of the past year in newspapers and on Chinese online media. The ten terms have also become a topic of discussion on Weibo over the past month, with the topic receiving 290 million views.

We’ve listed them for you here:

 

1. 文明互鉴 (wénmíng hùjiàn): “Mutual Learning”

  • Literal Meaning: “Mutual learning,” “Exchanges and mutual learning among different cultures and civilizations.”
  • Original context: This expression can be traced back to the era around and during the Warring States Period (475-221 BC), a time of division, bloody battles, and political chaos. The demands for solutions brought forth a broad range of philosophies and schools. During this time, Confucianism, Taoism, Legalism, Mohism and many others were developed leading to the phenomenon known as the “Contention of a Hundred Schools of Thought.”
  • What does it mean now? In 2014, at the 4th summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA), Chinese President Xi Jinping put forward a major initiative to convene a conference on dialogue between Asian countries followed by an introduction emphasizing how “diversity spurs interaction among civilizations, which promotes mutual learning.” This sentence and expression were later repeated in speeches during various major events. In May 2019, President Xi once again emphasized the idea during the CICA, making the term pop up across Chinese state media again. 

 

2. 区块链 (qū kuài liàn): “Blockchain”

  • Literal Meaning: Blockchain Technology
  • Context: “Blockchain” is no longer a new concept since it was first introduced to the public around a decade ago. Development of the malleable blockchain technology has become an important trend in China’s tech market through the years. 
  • What does it mean now?  Blockchain was all the buzz in China over the past year. In early 2019, the Cyberspace Administration of China released the Provisions on the Administration of Blockchain Information Services. In October, President Xi singled out blockchain technology as an important breaking point in developing China’s core innovative technology and emphasized the importance of investing and stepping up research on the standardization of blockchain to increase China’s influence and power in the global arena. 

 

3. 硬核 (yìng hé): “Hardcore”

  • Literal Meaning: “Hardcore” – 硬 = hard, 核 = core. 
  • Context: “Hardcore” is known as the abbreviation for Hardcore Punk, a punk rock music genre originated in Southern California during the late 1970s. The term was later used to reference things of a certain level of complexity, such as “hardcore games” (versus casual games). The term started to mean something along the lines of “terrific” (厉害) or “strict”/”rigid” (刚硬)  and in Chinese, started being used in expressions such as “Tiger mom” (硬核妈妈) or “Hardcore game players” (硬核玩家).
  • What does it mean now?  As the Chinese science fiction blockbuster The Wandering Earth (流浪地球) was categorized as ‘hardcore science fiction’ (硬核科幻), the term ‘hardcore’ resurfaced as a popular word often popping up in (online) conversations.

 

 4. 融梗 (róng gěng): “Mixing up ideas”

  • Literal Meaning: “Integrating other people’s ideas into one’s own work” or “integrating punchlines,” “mixing up plots.”
  • Context: Over the past two decades, many literary works, including a few by prestigious Chinese writers, have been suspected of plagiarism and triggered heated discussions online — when it comes to drawing inspiration from other art and literary creations, where is the boundary between artistic freedom and plagiarism?
  • What does it mean now?  Soon after the Chinese movie Better Days (少年的你) came out in October (read more here), the writer of the original novel was accused of plagiarizing parts of Japanese mystery writer Keigo Higashino’s work. Many netizens argued that in the field of online literature, borrowing ideas from others (融梗) is ubiquitous and does not necessarily equate plagiarism because the act (融梗) itself requires original work and creativity. From October to now, the term has become a recurring topic in Chinese media. 

 

 5. “XX 千万条,XX 第一条” (XX qiān wàn tiáo, XX dì yī tiáo): “Out of millions of things,..is the first one”

  • Literal Meaning: “Out of ten million things,.. xxx comes first as the rule of thumb.” 
  • Context: List thinking is prevailing in China; from codes and regulations enacted by the government and laid down by companies, to the way teachers outline their lectures, the usage of “articles” (sometimes used as ‘rules’)  or “items” (条) to organize ideas and outline objectives is commonly seen in daily life.
  • What does it mean now? This phrase caught people’s attention after appearing in the aforementioned science fiction film The Wandering Earth, where a robot voice reminds a driver of traffic safety in a noteworthy way, saying something along the lines of: “There are thousands of road rules, but safety rules always come first. If you disregard safety, your loved ones will end up in tears.” Despite sounding like a sketch that rhymes poorly in Chinese, the lines stuck around and were later also used by Chinese traffic police across the country. The sentence structure is now also more often applied in various other contexts, for example: “There are thousands of things good for health, but sleep is the most important.”

 

6. 柠檬精 (níngméng jīng): “Lemon monster”

  • Literal Meaning: “Lemon mythical spirit” or “Sour lemon goblin”
  • Context: In ancient Chinese superstitions, it’s believed that animals and non-living objects may have the potential to grow into something with spiritual and immortal characteristics if meeting certain criteria. One of the criteria is to be around long enough, usually hundreds of years – if not thousands. For instance, in the classical work Journey to the West (西游记), the four main characters except Tang Sanzang are all spiritual beings derived from animal prototypes. 
  • What does it mean now? Lemon tastes sour (酸), which is often used to describe the feeling of envy or jealousy. When lemon becomes a spiritual being, it basically means the lemon has reached the ultimate stage of being a lemon and maximized its characteristics such as being terribly sour. The phrase is used to deride those who feel envious of others’ possession and achievement. Lately, the word is more often seen in a self deprecating humoristic context. For instance, when someone says “I’m a lemon jing now/I feel sour now( 我柠檬精了/我酸了)”, instead of expressing envy towards others, it’s more about acknowledging others more advantageous position compared to one’s own. 

 

7. The 996 work schedule 

  • Literal Meaning: 996 working hour system
  • Context: 996 is a work schedule commonly practiced by many companies in the internet and tech industry in China. With the 996 schedule, employees are required to work from 9 am to 9  pm, 6 days per week. 
  • What does it mean now? In April 2019, Jack Ma, the co-founder and former executive chairman of Alibaba Group, commented on 996 during an internal meeting with Alibaba employees. Ma’s comments seemed to justify how companies and employees can both benefit from the work schedule, however, the comments quickly triggered criticism after widely circulating online for allegedly violating of the Labour Law of the People’s Republic of China. 

 

8. “我太难(南)了” (wǒ tài nán le): “Life is so hard for me” 

  • Literal Meaning: “I’m feeling uneasy” or “life is so hard for me” 
  • Context: The phrase originated from a 10-second video self-posted by a user on video-sharing site Kuaishou earlier in 2019. As the video begins, the user – an older Chinese guy –  says to the camera: “I’m feeling uneasy…” followed by sad music. He then continues to say “Lao tie [bro/guys], (I) have been under a lot of stress lately.” The video, in which the man dramatically drops his head in his hands and seems to cry without tears, quickly went viral. The phrase “I’m feeling uneasy” was quickly adopted and applied in daily conversations.  
  • What does it mean now? The broad circulation of this phrase on the internet reflects that the uneasy feeling about life is relatable to many people. Acknowledging the stress in a self-deprecating humorous tone is in itself a way of relieving stress. To add a sense of humor to this phrase, many replace the initial character “难” (nán, adj. difficult) with “南” (nán, adj.& n. south), which is believed to be taken from the mahjong tile “南风”(south wind).  

 

9. “我不要你觉得,我要我觉得” (wǒ bùyào nǐ juédé, wǒ yào wǒ juédé): “I don’t want to know what you think, I only care about what I think”

  • Literal Meaning: “I don’t want to know what you think, I only care about what I think.”
  • Context: The line was taken from Xiaoming Huang, one of the guests in the third season of the entertainment TV show “Chinese Restaurant”, which was broadcasted in the summer of 2019. In the show, Huang, who took the role as the manager of the restaurant, is self-centered, and often disregards the opinions of others in matters such as menu ideas or pricing, showing his blind self-confidence and arrogance. In addition to this line, Huang’s frequently used language includes “There is no need to discuss this matter”, “Listen to me, I have the final say” and so on, and it spread quickly on the internet.  
  • What does it mean now? The popularity of this line reflects people’s ridicule and resentment against arrogant and dominant personalities.

 

10. 霸凌主义 (bàlíng zhǔyì): “Bully-ism”

  • Literal Meaning: “Bully-ism”
  • Context: The word 霸凌 (bàlíng) comes from the English word “bully.” Here, it refers to bullying other countries in the face of conflicts between nations. 
  • What does it mean now? As the trade conflict between the US and China was ongoing in 2019, many believed that the current government administration of the United States has been handling international affairs in almost a bullying manner. The slogan “America First” is also often perceived as a declaration in front of the entire world that the interests of the United States come first. As a buzzword, “bullyism” has come to be used by Chinese media in the context of international affairs. 

 

By Jialing Xie
Follow @whatsonweibo

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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