China's top tax authority is now obtaining details of assets in China held by foreigners, this information is due to be exchanged with the tax authorities in 100 other countries and regions around the world next year, according to a report from «China Youth Daily.»
Financial hubs such as Singapore, Hong Kong, New Zealand, The Cayman Islands, The Virgin Islands, The Cook Islands and The Channel Islands, where wealthy Chinese may have set up family trust funds, have all reportedly signed up to join in with the Common Reporting Standards (CRS) legislation.
The data collection is aimed at clamping down on tax avoidance through foreign financial institutions, which has become a growing practice around the world.
Commencing in 2018
Common Reporting Standards, or CRS, on exchanging information concerning tax and financial accounts were developed in response to a request from the G20, and approved by the OECD (Organization for Economic Co-operation and Development) Council on 15 July 2014.
China pledged to follow the CRS in September 2014 and announced that information would be exchanged for the first time in September 2018.
Details of all the foreign individuals and organisations in China with a bank surplus of over $870,000 will be collected by the end of this year, according to the report.