Individual Income Tax Anti-Avoidance Under the Substantial Progress of CRS: Problems and Countermeasures

As an important participant in the global economy, China actively promotes and implements CRS to strengthen cross-border taxation mechanisms and address the cross-border tax avoidance issues of domestic taxpayers. China’s implementation progress includes key steps such as signing a multilateral tax collection and management mutual assistance convention, and issuing due diligence management measures for tax related information of non-resident financial accounts, reflecting China’s active role in global tax cooperation. However, the implementation of CRS is not without obstacles. The article analyses the challenges faced by CRS in institutional design and implementation, including technical challenges, legal and policy differences, obstacles to international cooperation, and issues of public awareness and transparency. To address these challenges, a series of countermeasures and suggestions have been proposed, such as improving the level of information technology, strengthening the connection between domestic legislation and international standards, strengthening international cooperation and exchange, enhancing public awareness and transparency, and regularly evaluating and revising systems. Through continuous efforts and improvements, China will further consolidate the implementation effect of CRS, make greater contributions to global tax cooperation and international tax governance, and promote the healthy development of the global economy.