The Impact Of Common Reporting Standard (CRS) On China And Its Countermeasures

In recent years,governments have attached great importance to international anti-tax avoidance actions.Especially after the 2008 economic crisis,the economic downturn has caused fiscal revenue to decrease,further promoting the implementation of international anti-tax avoidance actions.In the international anti-tax avoidance action,a prominent problem faced by all countries is how to effectively obtain tax-related information of taxpayers,and then more accurately determine the behavior of taxpayers based on tax-related information and take corresponding actions.The authorities' mastery of the information on the economic activities of overseas taxpayers is the basis for preventing and correcting international tax evasion.Since the successful implementation of the Foreign Account Tax Compliance Act(FATCA)in the United States in 2010,the United States has adopted the Foreign Account Tax Compliance Act(FATCA)and more and more countries have adopted corresponding In action,the global anti-tax avoidance action has further progressed,and the Common Reporting Standard(CRS)is a vital part of the action.The CRS stipulates the relevant requirements and procedures for financial institutions to collect and report foreign tax resident personal and corporate account information,and provides a strong institutional guarantee for promoting international tax cooperation and effectively combating cross-border financial accounts from tax evasion.The OECD provides guidance on the implementation of CRS for the automatic exchange of tax information in financial accounts for implementation,but the specific application of CRS needs to be translated into domestic law,which puts new demands on CRS participating countries.As far as China is concerned,as a CRS participating country,the implementation of CRS will bring a series of influences to China in the case of both the capital importing country and the capital exporting country.How to deal with it becomes an unavoidable problem in the future.To this end,this paper takes China as a capital importing country and a capital exporting country,and conducts specific analysis from the perspectives of the state,financial institutions,foreign investors,and financial tax-related information.At the same time,combined with the new Personal Income Tax Law and the Law on the Administration of Tax Collection under revision,further analysis of the impact of China's subsequent effective response to CRS.The innovation of this paper is innovation of analysis perspective.It analyzes the impact of CRS on China from the perspectives of China as a capital exporting country and capital importing country,and then from the financial account tax information level,financial institution level and tax law.The revision level proposes China's response to CRS.This paper believes that taking the implementation of CRS as an opportunity to clarify the various links involved in the implementation of CRS through the domestic legal layer can not only ensure the effective implementation of CRS,but also improve the tax information exchange system in China.