International development in automatic exchange of financial account information and China's perspective
The Organisation of Economic Cooperation and Development (OECD) on 13 February 2014 released a new global standard for automatic exchange of financial account information (the new standard) between governments. The new standard consists of two components: the Common Reporting Standard (CRS) which contains reporting and due diligence rules, as well as the Model Competent Authority Agreement (CAA) which helps to execute the exchange of information in an effective way.
The new standard was endorsed by the G20 finance ministers soon after it was released. On 6 May 2014, 34 OECD members, along with 13 countries, including China, issued a declaration that further commits to the implementation of the new standard.
While the document released does not include any specific timeline, implementation of the CRS could potentially increase significant costs for both the tax authorities and the financial sectors.
Other issues of China Tax/Business News Flash Visit our Tax Library.