Is the new financial information swapping scheme a ticking bomb for China’s richest?

The internationally accepted Common Reporting Standard is to be adopted in China and Hong Kong by 2018

However, tax experts say such high-net-worth individuals probably don’t need to worry too much, as the scheme will not necessarily lead to the mainland tax agency tracking down residents who are going to have their information reported by the overseas countries in which they have those assets.

“There are a number of people who have misunderstood the Common Reporting Standard (CRS) plan,” said Stella Fu, a Shanghai-based senior tax partner at PwC.

“It doesn’t necessarily mean whoever has overseas assets will have to pay double taxation.”

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