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The revised individual income tax law, which has received much attention, has recently been approved by the Standing Committee of the National People's Congress and will be fully implemented on January 1 next year. Among them, the first introduction of the anti-avoidance clauses means that strengthening the collection and management of high-net-worth people has attracted much attention. Wang Lei, the managing partner of PwC China's private customer service, told CBN reporter that with the implementation of the CRS (Common Reporting Standard for Overseas Financial Accounts), anti-avoidance legislation at the individual income tax level has become urgent. To give a simple...

NEWS 2020

Impact on Chinese High Net Worth Individuals (HNWIs) As of January 1, 2017, the number of families in China with net assets of more than RMB 10 million (approximately $1.57 million) had reached 1.86 million, with 147,000 added in 2016 and a growth rate of 8.6 percent. Families with net assets of more than RMB 100 million ($15.7 million) has reached 121,000, with 12,000 added in 2016. For Chinese HNWIs with an “American dream,” the Tax Act may have profound implications. Buying US Real Estate Buying US property is often the first thing Chinese HNWI immigrants consider, even before moving...

NEWS 2020

Britain’s so-called “requirement to correct” (RTC) legislation has come into force, and requires taxpayers to declare any foreign assets that could affect their UK income tax, capital gains tax or inheritance tax. Investors who notified HMRC (Her Majesty’s Revenue and Customs) before the deadline were granted 90 days to disclose any offshore assets and pay the relevant tax due. Australia, Switzerland and Singapore are among the countries that have signed up to let tax authorities share information internationally. Any individuals who have paid the incorrect amount of tax on overseas income in previous years must have corrected their tax returns...

NEWS 2020

Those who hold an account (or are a controlling person) with Hong Kong Financial Institutions – both individuals and entities – must prepare to report their tax residency information to the Inland Revenue Department (IRD) by May 2018 for exchange with 75 reportable jurisdictions under the AEOI standard. In September 2014, Hong Kong indicated its support for implementing automatic exchange of financial account information (AEOI) on a reciprocal basis with appropriate partners, with a view to commencing the first exchanges from 2018. Under the AEOI standard, financial institutions in Hong Kong are required to identify financial accounts held by “tax residents of...

NEWS 2020

Opening an offshore bank account is just like opening a bank account locally. The only difference is the location of the bank, as well as the banking services offered. If you’re interested in taking the offshore route, there are several things to put into consideration. Here are six of them: Open an account is fast and affordable, but you must do it with the right mindset and proper understanding If you think that opening an offshore bank account is difficult and expensive, think again. Especially when you’re using an agent’s service, opening an account is very straightforward, and most of the...

NEWS 2020

HMRC has won a £79m case against Goldman Sachs and agriculture giant Cargill after the American companies attempted to avoid paying taxes in the UK The long-running case involves a tax avoidance scheme used by Teesside Power Limited (TPL), subsequently renamed GDF Suez Teesside Limited. In 2001 Cargill’s private equity division and Goldman Sachs took ownership of TPL following the collapse of its owner Enron in 2001. Teesside Power claimed hundreds of millions of pounds were owed to the plant by other Enron subsidiaries during its US bankruptcy. Teesside Power set up a Jersey-based company to try to avoid paying...

NEWS 2020

The Government of the British Virgin Islands (BVI) has hired another attorney from the UK to draft legislation intended to keep the territory off the European Union’s  blacklist of tax haven jurisdictions. The government will not be incurring any additional expenses for the second attorney, according to a Cabinet’s statement. Government initially retained the first attorney, Furness, at a cost of up to $400,000 but his legal fees have been reduced to $300,000. Junior counsel Rivett will now work in conjunction with Furness at a cost not exceeding $100,000 local media outlet BVINews reports. Furness and Rivette were specifically hired to draft local...

NEWS 2020

* The issuance of central bank bills in Hong Kong aims to enrich the spectrum of highly rated, yuan-denominated financial products in the offshore market * Move comes at a time when market participants expect the U.S. Federal Reserve to raise interest rates next week, which would put downward pressure on the yuan (Beijing) — China’s central bank is taking its first steps toward supporting the offshore yuan market by paving the way for its bill issuance in Hong Kong, the world’s largest offshore yuan clearing center. The People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA),...

NEWS 2020