China signs international tax agreement
China have signed the OECD’s Multi-lateral Convention on Mutual Administrative Assistance in Tax Matters. By signing the international tax agreement, China will be able to work more closely with the other signatories to help combat tax avoidance and evasion.
The OECD Secretary-General Angel Gurría, commented at the signing that: ‘This Convention provides the ideal instrument to swiftly implement automatic exchange, and to do so with a wide range of partners. This also represents another significant step in the strengthening of collaboration between China and the OECD.’
Signatories to the Convention include the UK as well as many other countries including Argentina, Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Georgia, Germany, Greece, India, Ireland, Italy, Japan, Korea, Mexico, Netherlands, Norway, Poland, Portugal, the Russian Federation, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine and the United States.
The Convention is a multilateral instrument which fosters tax cooperation whilst at the same time tackling tax evasion and avoidance. The Convention also provides for spontaneous exchange of information, simultaneous tax examinations and assistance in tax collection.