If you skim read like me then you might not have understood how this works: 1. Companies pre-pay tax by buying vouchers called `fapiao` which the article state

If you skim read like me then you might not have understood how this works: 1. Companies pre-pay tax by buying vouchers called `fapiao` which the article states, costs 10-20% of the kuay (Chinese yuan) value. (I assume rates differ depending on overall income of the business). 2. A transaction takes place and the customer pays the business in yuan and receives one of these fapiao tickets as a receipt. Incentives to get this ticket is that is acts as a lottery ticket also, with modest prizes. 3. The tax enforcement is therefore 'crowdsourced' because if any customer doesn't receive this ticket then they can report the business. 4. Any fapiao tickets leftover can be used for tax rebates. The biggest problem I see is that businesses have to prepay tax which is 'estimated'. If this was too high then it could cause problems for the business's balance-sheet. Other problems the article details: - Not much incentive for people to collect their fapiao tickets - Bribes, fraud and stealing by the business due to their incentive to keep tickets