China signs Multilateral Tax Convention

China on Tuesday signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, participating in global efforts to combat tax avoidance and evasion by cooperating with other states in the assessment and collection of taxes. Wang Jun, Administrator of the State Administration of Taxation of China signed the Convention on behalf of the Chinese government, at the presence of Angel Gurria, Secretary-General of the OECD, at the headquarters of the OECD in Paris. By signing the Convention, China became the 56th signatory to the multilateral agreement which is designed to facilitate international cooperation among tax authorities to improve their ability to tackle tax evasion and avoidance and ensure full implementation of their national tax laws, while respecting the fundamental rights of taxpayers. "This is the first multilateral tax instrument that has ever been signed by China," Chinese Administror Wang Jun told the audience at the signing ceremony. He said the signing of the Convention is of significance as it comes at a time when China has begun economic transition and it marks a new step for China to deepen and widen the opening-up and reform in tax matters. Hailing China's participation in the Convention, OECD chief Gurria commended China's action to fulfill its commitment and join the other G20 countries to combat tax. The Convention on Mutual Administrative Assistance in Tax Matters is the most comprehensive multilateral instrument available for tax cooperation and exchange of information. It provides for all possible forms of administrative cooperation between states in the assessment and collection of taxes. This cooperation includes automatic exchange of information, simultaneous tax examinations and international assistance in the collection of tax debts. The Convention was developed by the OECD and the Council of Europe in 1988 and was updated in 2010 to bring it into line with international standards on the exchange of information for tax purposes, and to allow any country to become a Party to the Convention. According to the OECD sources, so far, over 60 countries have signed the Convention.