Deloitte in the news
Time Weekly interviewed Deloitte on China CRS
The Time Weekly Guangzhou recently published an article, titled "China CRS: overseas trust, insurance, securities firms undergo comprehensive supervision" on 31 May 2017, in which our National GFSI Tax Leader Patrick Yip was quoted in the article.
On 19 May 2017, the "Bulletin 14 - Administrative Measures for Due Diligence on Non-resident Financial Account Information in Tax Matters (the "Chinese law") or "China CRS", jointly issued by the State Administration of Taxation (SAT), the Ministry of Finance, the central bank, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission, will come into effect on 1 July 2017. This new Chinese law will take effect requiring financial institutions within mainland China to check the accounts of foreign individuals and foreign firms for any possible cross-border evasion.
Patrick pointed out that the CRS would go a long way towards fighting money laundering and transnational corruption, given the vast amount of information that will be exchanged on an automatic basis. Under the new Chinese Law, the stocks and funds information in financial accounts opened in Hong Kong by the mainland Chinese residents can be obtained by SAT under the new Chinese law. Though there's no capital gain tax in mainland China, the SAT can inquire the account holder about the source of capital which may incur legal issues. Further than that, CRS prohibited those companies registered overseas held by the third-party, which can still be identified under the Chinese law as long as they have operations and employees in China.
If you would like to read more about this article, please click here (Chinese version only).