According to a report by Chinanews.com on Monday, from September this year, the State Administration of Taxation of China intends to discover the hidden funds by exchanging information about taxes with foreign (regional) tax authorities.
Since it is difficult to clearly prove the existence of funds in overseas financial accounts in the past, the taxation of overseas assets always constitutes a major challenge for China.
The official name of the Common Reporting Standard (CRS) is the Standard for Automatic Exchange of Financial Account Information with the purpose to address this issue.
On July 15, 2014, the Organization for Economic Co-operation and Development (OECD) adopted the “Standard for Automatic Exchange of Financial Account Information” to strengthen international tax cooperation against cross-border tax evasion.
The State’s commitment to sign the “Agreement on Automatic Exchange of Financial Account Information by Transnational Governing Authorities” is to disclose the taxpayer’s tax-related financial accounts in accordance with the “Tax Registration Regulations” and to share this information with other countries.
By Courtesy of en.people.cn