Chinese developers deny report on unpaid land tax

Chinese real estate developers have dismissed a media report that claims they owe a massive amount in unpaid land taxes.

Listed companies, including Gemdale Corp., BBMG Corp. and Beijing Capital Development Holding Co., on Tuesday denied a China Central Television report that claims they are among companies owing more than 3.8 trillion yuan (618.89 billion U.S. dollars) in total unpaid land value-added taxes from 2005 to 2012.

The real estate developers said the broadcaster's allegations were based on a "misunderstanding," which had confused provisions in their accounts for future tax bills with actual tax payments.

Ren Zhiqiang, chairman of one of the companies, Huayuan Property Co., refuted the allegations in a post on China's Twitter-like microblogging service Sina Weibo, saying part of the land value-added tax must be pre-paid at the time of a project's pre-sale, and the remainder can be settled according to the progress of the project.

Ren said he is considering how to pursue legal action against the broadcaster. However, Huayuan Property filed a statement to the Shanghai Stock Exchange on Tuesday, saying the company will not take further action for the moment.