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BIZCHINA> Top Biz News
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Yunnan Baiyao not part of Chen's buffet
By Hou Qingyang and Zhang Ran (China Daily)
Updated: 2009-10-30 08:10 Chen Fashu, regarded by many as China's Warren Buffett, has clarified that his promised charity donation of 8.3 billion yuan does not include shares of Chinese medicine maker Yunnan Baiyao Industry Co Ltd. "The shares to be donated consist of Zijin Mining Group and Tsingtao Brewery (Tsingtao Beer)," said Li Xin, a spokeswoman for Newhuadu Industrial Group Co Ltd, a private company owned by Chen. "Chen did cash in part of his shares in Zijin to buy stakes in Tsingtao Beer and Yunnan Baiyao. However, the Yunnan Baiyao transaction has still not been completed," said Li. "Reports that Chen will donate shares of Yunnan Baiyao are just speculation."
Chen will be the chairman of the foundation, and Tang Jun, CEO of Newhuadu Industrial Group, will serve as the managing director. Chen, 48 and a self-made billionaire, started in the grocery business and later accumulated his wealth by investing in the capital market. With a personal wealth of 25 billion yuan, Chen ranks No 15 in the latest Hurun rich list. Chen's philanthropy initiation has drawn not only applauses but also doubts that he was planning to avoid paying tax for the sale of Zijin shares. In September, the Securities Daily reported that the State Administration of Taxation was investigating Chen and his company for tax fraud in the Zijin Mining sale, saying Chen should pay at least 1 billion yuan in taxes. Zhang Peilin, a researcher at the Taxation Science Research Institute under the State Administration of Taxation, said only donations to chartered charity foundations or through government agencies can enjoy tax deductions or exemptions. Newhuadu Philanthropic Foundation is not on the chartered list. Therefore, direct assets transfer to the private foundation will not incur tax deductions or exemptions. Chen is a low-profile person with the media. His partner, Tang Jun has being taking interviews on his behalf. "Chen is optimistic and I believe he will not mind these questions," Tang was cited by Securities Daily as saying. "However, I think there won't be any big donation in the coming three years at least." (For more biz stories, please visit Industries)
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