Erik Stroeve, Tax partner and Head of Mazars European China Desk platform, shared his expert opinion with ChinaDaily on the first multilateral tax instrument China has signed.
"It is a very important sign that the Chinese tax authorities are getting more comfortable with the tax standards practiced in Europe and the US. And the convention can only work when all major economic powers join," said Erik Stroeve, "China will benefit from the convention as it may lead to tax collections that were previously not within the reach of the Chinese tax authorities."
"Stroeve believes that the new convention will also force multinational corporations in China to be more prudent and serious about their tax structures, and will make it difficult for foreign companies to hide or shift certain profits elsewhere to avoid taxes."
The full article could be read by clicking here.