China to chase tax evaders with own version of US foreign account law
China is expected to introduce its own version of the new US tax law that requires financial institutions around the world to provide Washington with information on US taxpayers, analysts say.
Such a law would make it more difficult for corrupt Chinese officials and their relatives to park their wealth in Hong Kong.
Secretary for Financial Services and the Treasury Professor Chan Ka-keung has signed an agreement with the US to allow Hong Kong to pass tax information of Americans working in Hong Kong to their US counterparts under the Foreign Account Tax Compliance Act (Fatca).
China, as a G20 member state, would probably follow suit, said Richard Weisman, of the Hong Kong office of law firm Baker & McKenzie. He said China would probably use a version of Fatca to collect tax information about Chinese citizens around the world including Hong Kong.
"Fatca is only the beginning of what will become a major new compliance obligation for financial institutions. The next major development with respect to Fatca will be the G20's proposal to multilateralise Fatca. China, as a member of the G20, has endorsed this proposal. China can obtain tax information by joining the G20's approach to Fatca. That is a likely scenario," Weisman said.
http://www.scmp.com/business/china-business/article/1458825/china-chase-tax-evaders-own-version-us-foreign-account-law