Couples divorce in beijing to avoid tax

An increasing number of married couples are splitting to take advantage of a loophole in China's new tax legislation. The law, introduced in March 2013, charges a 20 per cent levy on profits made from the sale of property - but does not apply to divorced couples. Married couples with two homes, therefore, can sign them into each person's name, divorce and sell them individually, free of charge. They can then get married again afterwards.

The situation has sparked a surge in divorces, reported the Beijing Youth Daily (via The Times of India), with 40,000 couples divorced in Beijing in the first nine months of 2013 - 41 per cent higher than the same period in 2012.

"The exceptionally fast growth is related to tax evasion by some people taking advantage of a loophole in the (new) property purchase regulations introduced by the government," confirmed Li Ziwei, a Beijing-based marriage expert and former civil affairs official.