How to use a second passport to avoid CRS

Hello, I'm glad to answer your question.

CRS(Common Reporting Standard) is translated into "Unified Reporting Standard" in Chinese. It is an integral part of the AEOI standard (automatic exchange standard of tax-related information in financial accounts) issued by OECD in July 20 14. It is a criterion for information exchange of financial accounts of tax residents. Its original intention is to increase the transparency of international tax revenue and combat the use of cross-border financial accounts for tax evasion.

Therefore, the dual-tax resident status you mentioned can't avoid information exchange, but you can turn overseas assets into real estate, precious metals, works of art and other objects without exchanging asset information.

The "financial accounts" held by overseas tax entities will be disclosed to the China Municipal Government according to CRS. The concept of "financial account" in CRS is quite different from the usual "account" in China's financial business. Some people may only think of their money in the bank when they mention the wealth management account, and think that the so-called wealth management account should be a deposit account. In fact, financial accounts contain many aspects.

The meaning of "financial account" under CRS is all-encompassing. Just this concept, the OECD used 17 page to explain it in its "Review of Standards for Automatic Exchange of Tax-related Information in Financial Accounts", which shows its complexity.

According to the interpretation in the CRS text, the so-called "financial account" refers to the account held by financial institutions, which usually includes five categories:

1. deposit account

2. Custody account

3. Interest on equity and debt of some investment entities.

4. Cash value insurance contract with cash cancellation value.

5. Annuity contract

That is to say, if you hold these five types of accounts in financial institutions of other CRS participating countries abroad, the information of the accounts will be transmitted to the tax authorities of our country through the automatic exchange mechanism of CRS from 20 18. The purpose of CRS is to weave a big net around the world to crack down on transnational tax evasion and unreasonable tax avoidance, so that tax evaders have nowhere to hide.

The above answers are for your reference and hope to help you.

If you have any questions about this, please feel free to discuss with us.