Yes this is true information. Imagine some people that have been getting taxed for years while they just kept on working for the same bad school and the HR director knew damn well that their taxes were being deducted illegally and pocketed. The teachers don't know the difference, and the school tells the government that the teacher is no longer required to pay taxes, the government agrees, and the teacher's tax money buys a new car. The government assumes the school stopped taxing those teachers and the teachers assume the tax is required as a matter of law and they are none the wiser. I do hope that schools have their records in order when they end up in court or before the labor boards because up until just recently tax evasion was a death penalty offense in China. These days it is a stiff fine and heavy prison time. Imagine the taxes on say 5 teachers for 5 years all earning 10,000 or more per month. How many teachers are just dumb enough to keep working at some bad school year in and year out? Not only are they being stuffed up on wages and treatment, but they also get stuffed up on taxes too. Schools just love it when teachers resign contacts or sign for more than two years. Its not for the students sake or for image, it is for the free tax money!