The problem is that the school has to be in business for 1 year before they can legally hire Foreign Teachers. How can a school operate with no FTs for 1 year? This is a legal issue which is usually solved by greasing a few palms down at the local cop shop.... Anyone who thinks otherwise is naive.
if the accommodation is more than so many floors high it must have a lift.
Isn't this an issue with the building developers? Do you know of any apartment buildings in China above 6 floors that don't have lift? I've never seen one...
It [working on an L or F] also contributes to tax fraud
It doesn't. The tax bureau has nothing to do with the immigration police. If you earn more than 5,800 pm you still pay your income tax at source, no matter which visa your are on. The visa has nothing to do with tax.