CRS Implemented to Crack Down on Tax Dodging
China implemented Common Reporting Standard (CRS) for non-residents (individuals and enterprises besides tax residents of China) in July 1, 2017. The information will be submitted to the SAT, and an information exchange with countries (and regions) that have agreed to trade information with China is planned to begin in September 2018. At the same time, the Chinese tax authority will get domestic tax residents’ tax-related information embodied in their financial accounts in matching countries.
The group of people most affected by the planned information exchange are China’s taxed residents that own large sums of assets in offshore financial accounts. In addition to fighting against cross-border tax evasion, this information can also be used to fight corruption, money laundering, and financial crimes.