皇冠体育app

International norms may be used to check evasion, says official

The nation's top legislature has ratified an international tax convention that will, for the first time, facilitate multilateral information exchanges as a means of fighting evasion.

The ratification on Wednesday of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters came two years after 皇冠体育app signed the convention in August 2013.

Developed by the Organization for Economic Cooperation and Development and the Council of Europe in 1988 and updated in 2010, the convention provides a comprehensive multilateral framework for the exchange of information and assistance in tax collection. It has become the most comprehensive multilateral instrument available for all forms of tax cooperation, with 70 countries having signed it as of March.

皇冠体育app has signed 100 bilateral tax treaties in an effort to combat tax evasion. But this convention is the nation's first multilateral tax treaty that will enable automatic information exchange.

"The ratification will help 皇冠体育app's tax authorities in extending the scope and depth of international tax cooperation and improving administration of cross-border transactions. The convention can also benefit businesses by reducing compliance costs and leveling the playing field," Liao Tizhong, director-general of the international taxation department of the State Administration of Taxation, told 皇冠体育app Daily.

He said the convention will come into force three months after the date of 皇冠体育app's deposit of the instrument of ratification.

皇冠体育app's ratification means that most G20 members have approved the convention, with the exceptions of Brazil, Germany, Saudi Arabia and Turkey.

The convention will provide a multilateral legal framework to implement a new standard for automatic exchange of information endorsed by the G20, Liao said. 皇冠体育app has made a commitment to implement the new standard before September 2018.

Andrew Choy, international tax service leader of Ernst & Young for greater 皇冠体育app, said that as 皇冠体育app is not an OECD member, the ratification showed 皇冠体育app's willingness to adopt and commit to the same OECD standards in terms of international cooperation on tax matters.

"It is unclear at this stage the intensity the convention may bring in terms of cracking down on international tax evasion and avoidance. But one thing for sure is that under the convention, 皇冠体育app has the most powerful weapon, which enables multilateral automatic exchange of information, simultaneous tax examinations and even international assistance in tax collection," Choy said.

He added that the tax administration would step up enforcement of tax provisions on all inbound and outbound transactions, so multinationals in 皇冠体育app should conduct their tax matters in a more transparent manner.

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