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  • Marco Siu

China crackdown on e-commerce click farming

China's Government had spot checks of online stores on multiple e-commerce platforms like Taobao, Tmall, etc. Owners of online markets are asked to return taxes and the late fees for the three years from 2017 to 2019 as per Alipay transaction credit. The owner also needs to pay taxes for false transactions

One of the major problems is that the turnover is difficult to correctly understand and the lack of clarity of the data. Today, the tax department takes online sales data through big data technology, and encourages interaction with the platform to obtain whole e-commerce platform data, deepens cross-system and cross-industries for tax cooperation, and shares information support among multiple departments. This data found that several businesses have under-reported revenue between 2017 ~ 2019. Many E-commerce retailers have received mentions issued from the tax department and asking them to return the tax from the framing data.

Click farmings is a way to increase their website volume, create fake ratings and reviews. This creates more attention to attract customers, which is a fake conversion rate. From now, it will have a heavy loss of the data. On the other hand, China's Government will take advantage of big data, and optimize the new tax management model, and crackdowns on fake transactions, which will maintain the order of the e-commerce market.

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