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Apple Computer Trading (Shanghai) Company, an subsidiary of Apple Inc. in China, underpaid 452 million yuan ($70.9 million) of tax as of the end of 2013, according to a report released by the Ministry of Finance Wednesday.

Apple Computer Trading (Shanghai) Company has paid back 452 million yuan of tax, as well as 65 million yuan of overdue fine.

The official accounting inspection report by MOF also says Apple Computer Trading (Shanghai) Company underreported 8.8 billion yuan of revenue and 3.4 billion yuan of cost, and overstated 5.4 billion yuan of profit.

Shi Zhengwen, deputy president of China Association for Fiscal and Tax Law, and director of Center for Research in Fiscal and Tax Law of CUPL (China University of Political Science and Law) said the fact that many big enterprises intentionally underpay tax reveals problem of slack law enforcement.

Shi thinks to better the situation, improving the tax administration law would be the first thing to do. Besides overdue fine, extra interests should also be charged for those companies underpaying tax. In addition to that, the Finance Ministry should strengthen instructions for its subordinate departments, and supervise them to strictly enforce the law.