Professional Interpretation

CRS has the troubleshooting lag phase for at least 2 years as same as FATCA act implemented by the United States at the beginning. After being calm for two years, CRS information exchange case around the world begins to take place frequently. 

In the past 8 months, Pakistan was awarded as the model of A+ tax-related information exchange by international community. The result of CRS information exchange showed that a total of 1,980 tax-related cases were mainly targeted, of which the recovered tax was INR 888,000,000, and the total tax-related amount was up to INR 1,640,000,000 in 19 cases; Meanwhile, France, Italy and Israel all have gotten the information of a large number of tax-related accounts though Switzerland delivery market. Soon afterwards, Singapore, as a tax haven of Asians, also asked Switzerland to provide the tax-related information of the financial accounts last week. Also, we need to pay attention on another substantive exchange of Switzerland that Hongkong, China and Switzerland agreed to exchange the tax-related information of the financial accounts in July 2017 and started to officially exchange the collected tax-related information occurred in 2018 on July 1, 2019. It is predicted that by 2020, a series of problems aroused by the information exchange under CRS will break out in different countries and regions. 

For exchange of the tax-related information under CRS, CRS specifies two exchange principles: Automatic exchange and batch exchange. Specific exchange mode is as follows: 

There are extremely close cross-border transactions and arrangements between Australia and China. Recently, Chris Jordan, Director of Australian Taxation Office (ATO), said in an open speech that Australia has transformed its attention to individual taxpayers from transnational enterprises in the anti-tax avoidance work. Australia has successfully exchanged tax-related information of the financial accounts under CRS with 65 countries and regions and Australian Taxation Office has collected the information of 1.6 million financial accounts, totally involving AUD 100 billion of overseas financial assets. According to the report on recent exchange process under CRS made by Australian Taxation Office (ATO), it has targeted 370,000 taxpayers with overseas financial accounts based on the information of financial accounts exchanged under CRS. After check and analysis batch by batch and stage by stage, it has sent over 2,000 tax notices to the taxpayers who evade declaration of AUD 20 million of assets and revenues at present, to urge such taxpayers to actively disclose and explain the overseas banks and financial accounts and comply with tax regulations. 

In the tax notice sent to the taxpayer, the tax-related information mastered by Australian Taxation Office (ATO) is clearly defined, such as balance amount of the account, name of the account holder, account as well as interests, bonus and dividends incurred by the financial assets, and the taxpayers are required to timely make declaration and disclosure and make an explanation. Wherein, in a tax notice sent to a selected taxpayer, the taxpayer is clearly notified of the situation that he/she has transferred AUD 28,000 dividend distribution incomes to an American bank account. 

The information about the exchange process under CRS reported to the public by Australian Taxation Office (ATO) comes from 65 countries, including England, India, Italy, China, Cayman Islands, BIV and other tax havens, which involves wide range. 

Meanwhile, Australian Taxation Office (ATO) also re-urges the taxpayers with Australian resident status to timely make disclosure and declaration about the information on overseas banks and financial accounts based on regulations, including bank accounts, insurance contracts, offshore trusts, offshore companies, overseas incomes like incomes from the house leasing and overseas interests.