Research On CRS Rules From The Perspective Of Global Anti-tax Avoidance

With the development of globalization,cross-border economic activities are developing vigorously.At the same time,tax evasion and tax avoidance by taxpayers in various countries are becoming more and more rampant.In order to combat tax evasion and stabilize their tax base,governments are deepening international cooperation to promote the development of International Anti-tax avoidance.In 2010,the United States promulgated the FATCA act in order to levy a global tax on its resident taxpayers.Following the FATCA act,many countries have similar measures,thus Global anti-tax avoidance begins to develop.At the G20 meeting in2014,the OECD was commissioned by the G20 to promulgate the Common Declaration Guidelines(CRS),which will guide the automatic exchange of tax information among the participating countries.China has pledged to implement CRS at the G20 summit and announced the first exchange of tax-related information in September 2018.China's accession to the CRS rules will be conducive to our tax authorities to obtain taxpayers' sources,amounts,import and export channels of foreign financial assets,and provide a great tool for the supervision.However,the CRS rules have just been released,the theoretical research are not yet abundant.This paper try to clarify the superior and shortcoming of CRS through the analysis of CRS,as well as the introduction of China's relevant tax system and propose suggestions,in order to benefit the development of China in this field.Based on this,I will discuss the development of CRS rules in the world and the legislative status of relevant systems in China through the following chapters.Chapter 1 propose the overview of CRS rules.This chapter first reviews the history of international tax information exchange.Although the exchange of tax information appeared in some bilateral tax agreements very early,it did not receive sufficient attention from all countries in the world.Until 2008,a series of tax evasion scandals broke out in offshore tax havens and banks.Many countries have awared of the importance of the exchange tax information,and the international tax information exchange mode was mainly bilateral tax credit on request.It is not only Low efficiency and high priced,but also applicable to individual cases and is not universally applicable.Thus,the chapter then discusses the predecessor of the CRS rule,and the FATCA act.Why is the FATCA act the predecessor of CRS? Because the core provisions of CRS are derived from the FATCA act,and some even say that CRS is the global version of the FATCA act.So what is the US FATCA act? In short,it is an attempt by the United States to change the current world intelligence exchange pattern through a unilateral tool after discovering the important role and great potential of the international tax information exchange system for International Anti-tax avoidance.Therefore,the United States enacted the FATCA Act in 2010,which stipulates that foreign financial institutions should act against it.U.S.household account information declaration obligations,and in order to make offshore financial institutions with the Act,also provides for the penalties for offshore irregular financial institutions(the financial institutions derived from the United States of America's specific income tax 30% withholding).Although the act was denounced as "hegemonism" at the beginning of its implementation,the advanced nature of the act system also inspired the world's major economies and thus became the trigger for the birth of CRS.After discussing the reasons for the coming into the world of CRS,the following chapters of this chapter introduce the main contents of CRS,that is,the document of CRS,the prerequisites for the implementation of CRS by the contracting countries,the mode of exchange of CRS tax information and the requirements of CRS due diligence investigation.It also introduces several characteristics of CRS through comparison with the FATCA act.The second chapter introduces the positive role of CRS rules in international anti tax avoidance and its institutional limitations.In the good way,the paper first lists the anti-tax avoidance achievements of several countries after the implementation of CRS,and then introduces in detail the two institutional advantages of CRS rules,namely,"batch","automatic" exchange of tax-related information network and strong "through" rules.In the institutional limitations,the paper discusses the institutional loopholes in the current CRS rules and the adverse effects on financial institutions and government departments in the world due to the huge implementation costs of CRS.Chapter 3 introduces the necessary,current situation and institutional defects of implementing CRS rules in China,and purposes some suggestions for advance.With the enlargement of foreign investment in China,the problem of supervision of transnational tax sources is becoming increasingly prominent.Therefore,it is in our fundamental interests to promote the CRS system in our country to integrate our anti-tax avoidance system with the world.In order to carry out CRS,China has revised correlative laws,and provided institutional guarantee for the landing and implementation of CRS in China.However,due to the lack of relevant legislative experience in China,there are many provisions in these laws which are not clear in definition and light in punishment,so I put forward five suggestions in the end of this chapter.