SAR in the act as noose tightens on rich tax evaders (19 December 2016)
The Inland Revenue Department in Wan Chai is expected to receive the first batch of AEOI (Automatic Exchange of Information) returns filed by local financial institutions by May 2018, as the Common Reporting Standard (CRS) regime is well underway in Hong Kong. Anthony Tam, Executive Director of Tax Services at Mazars Hong Kong shares some thoughts on this topic by China Daily Asia.
A “game changing” tax transparency initiative poised to reshape the international tax landscape is on track in Hong Kong and worldwide, putting tax advisers and their clients on a tight schedule to lay out a viable solution.
The SAR became one of the 47 “second-wave adopters” of the Common Reporting Standard (CRS) regime for the Automatic Exchange of Information (AEOI) between participating jurisdictions in June this year.
The regime, issued by the Organisation for Economic Co-operation and Development (OECD) in July 2014, aims to combat tax evasion and profit shifting, with more than 100 jurisdictions, including major financial centers such as the British Virgin Islands, the Cayman Islands, Dubai, Singapore and Switzerland, committing themselves to complying with it.
Financial institutions in over 50 jurisdictions around the world, in particular, are already geared up to pass on information on their clients and accounts, collected since January this year, to their country of residence in 2017.
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Credits: Article written by Sophia Luo for China Daily Asia