Summer of 2017 to see tax evasion crackdown – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for May 22, 2017. Part of the daily SupChina news roundup "Did China kill C.I.A. spies? Plus: Chinese views on Iran."

Financial authorities on May 19 announced that “from July 1, all deposit-taking institutions, policy banks, investment agencies and insurers must ensure each new account has detailed information for tax assessments, including names, addresses, account balances and revenue flows,” the South China Morning Post reports. China Daily refers to the new measures as a stricter form of the due diligence tax procedures already in place, which expands oversight of non-resident accounts and prepares China to share information on tax evasion with other countries.

The SCMP explains that the new rules seek to expand tax revenue during a time of large fiscal deficits, and also satisfy a requirement of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, a framework designed by the Group of 20 major economies and ratified by China in 2015.