Billsdue cites an article in China Youth Daily saying that Chinese tax authorities are investigating a number of possible infractions by Google and/or its employees. Presumably, money will solve these reported problems. But you never know:
According to this article from China Youth Daily, the Beijing Tax Bureau is investigating Google China for various tax issues, from business taxes to personal income taxes to taxes on on employee options. The investigation is the result of a whistle-blower (even odds that it was either a disgruntled employee or a competitor).
If I am an employee, especially a US employee, working for Google in China I would be concerned. I knew a guy who worked for Yahoo in the late 1990s and moved for Yahoo from Sunnyvale to Singapore. He exercised options while living in Singapore and then got a massive tax bill from the Singapore government. He fled, almost literally, with his family and to this day I do not believe he can go back to Singapore. Could something similar happen here? I don’t know, but what tax authority doesn’t like to reach as far as they can?