Core Viewpoint - The implementation of the "Regulations on Reporting Tax-related Information by Internet Platform Enterprises" aims to enhance tax compliance and prevent tax evasion practices among platform operators and their employees [1][2][3]. Group 1: Tax Reporting and Compliance - Internet platform enterprises are required to report basic information, including domain names and business types, by July and identity and income information of operators and employees by October [1]. - The tax authorities have identified attempts by some platforms to convert employee income into individual business income to evade taxes, which is considered illegal tax evasion [2][3]. - The implementation of the regulations allows tax authorities to access tax-related information from platform operators and employees, facilitating the detection of non-compliance [3]. Group 2: Prevention of Income Splitting and Tax Evasion - Some platforms are reportedly assisting operators in splitting income to qualify for tax benefits, thereby reducing tax liabilities [4]. - Income splitting involves distributing income that belongs to a single taxpayer across multiple entities to exploit tax exemptions [4]. - Tax authorities are expected to use data comparison and risk analysis to identify and penalize platforms and operators involved in income splitting and fraudulent tax claims [4]. Group 3: Addressing Shell Platforms and Fraudulent Practices - The regulations have led to a significant reduction in the number of "shell platforms" that previously exploited tax loopholes by issuing invoices without conducting actual business [6]. - The number of such platforms has decreased by over 100 since the regulations were proposed, indicating a positive impact on curbing illegal practices [6]. - The tax authorities aim to eliminate the information barrier between registered and operational locations of platform enterprises, making income and tax costs more transparent [6].