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a day ago
- Business
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Facing cash crunch, China ramps up global tax crackdown; investors face 20% levy
Facing cash crunch amid slowing economic growth and falling land sales, China has turned to a crackdown on investors' offshore gains to generate a new stream of revenue. Investors are likely to turn to US markets to escape the crackdown. Staff lower Chinese national flag in front of screens showing the index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. (Photo: Tyrone Siu/Reuters) Facing cash crunch amid slowing economic growth and falling land sales, China has started a crackdown on investors' offshore gains to generate a new stream of revenue. But it may prove to be counterproductive in multiple ways. Chinese authorities are making public and direct calls to investors to declare and pay their taxes on their overseas investments, and they are using the Common Reporting Standard, an OECD-backed framework to tackle global tax evasion, to hound investors, according to Financial Times. STORY CONTINUES BELOW THIS AD The crackdown is severe major economic hubs like Shanghai, Zhejiang, and Shandong, the newspaper reported. China is in the grips of an economic slowdown, with the economy growing at 5.3 per cent in the first half of 2025. It is projected to grow this year at 4.6 per cent and miss the target of 5 per cent. Last month, the industrial output growth fell to 5.7 per cent from 6.8 per cent the previous month and factory fell to 6.2 per cent, the lowest since November 2024. The producer price index (PPI) fell 3.6 per cent year-on-year in July to a two-year low, suggesting factory-gate deflation. Amid such a slowdown, China has turned to a crackdown on investors, but observers say that it could backfire. How could China's tax crackdown backfire? Investors who spend 183 days a year in mainland China are required to pay 20 per cent tax on their global income. However, China lacked the system and staff to charge that tax, but now it is increasingly enforcing it as it is under pressure to find new revenue streams to make up for falling revenue from traditional sources like land sales and factory production. In 2018, China adopted the Common Reporting Standard, an OECD-backed framework to deal with global tax evasion, which allowed it to tap into financial account information, including balances and contact details, from banks, brokerages, and asset managers in 120 jurisdictions. This can, however, backfire in two ways. One, many investors are considering closing their accounts with Chinese brokerages and shifting to American platforms, according to FT. 'I'm sure that in my lifetime the US and China will not work together, they will not share information. I'm betting on that,' an investor told the newspaper. STORY CONTINUES BELOW THIS AD Two, such a crackdown to tank investors' confidence in China. 'Ultimately, this is a confidence issue. When a jurisdiction enforces taxes, it can signal that the state is lacking stable and rich tax sources. This perception, in turn, can undermine investor confidence,' Eugene Weng, a lawyer at Shanghai-based Wintell & Co, told the newspaper.
Time Business News
11-08-2025
- Business
- Time Business News
Offshore Citizenship Options for High-Privacy Clients
Vancouver, Canada — In an age where personal data flows freely across borders, privacy has become one of the most valuable forms of currency. High-net-worth individuals, entrepreneurs, journalists, and politically exposed persons are increasingly seeking ways to protect not only their assets but also their identities. One solution gaining momentum in 2025 is the strategic acquisition of offshore citizenships designed to enhance privacy while maintaining full legal compliance. Amicus International Consulting, a firm specializing in legal identity transformation and multi-jurisdictional mobility strategies, has seen a sharp increase in inquiries about privacy-focused citizenship programs. These clients are not looking to evade legal obligations; they are seeking to diversify risk, secure safe jurisdictions for themselves and their families, and ensure mobility in a world of tightening travel controls and surveillance networks. The Privacy Imperative in 2025 Global information sharing has expanded dramatically over the last decade. Agreements such as the OECD's Common Reporting Standard (CRS) and the United States' Foreign Account Tax Compliance Act (FATCA) have made it harder for individuals to shield financial details from their home countries. While these agreements aim to combat tax evasion and illicit financial flows, they also expose personal data to a growing number of government agencies worldwide. In parallel, biometric border controls, centralized digital ID systems, and artificial intelligence-driven surveillance have raised concerns about the erosion of privacy rights. For high-privacy clients, many of whom have legitimate safety, political, or business reasons for limiting exposure, offshore citizenship offers an additional legal shield against data overreach. What 'Offshore Citizenship' Really Means Offshore citizenship refers to acquiring legal nationality in a country outside one's primary place of residence, often in jurisdictions known for political stability, favorable legal systems, and a track record of protecting individual privacy. Contrary to misconceptions, offshore citizenship is not inherently secretive or illicit. When structured correctly, it is entirely legal and fully recognized under international law. Offshore citizenship programs can be categorized into several forms: Citizenship by Investment (CBI) — Involves a direct contribution to a country's economy through real estate purchases, government bonds, or development funds. — Involves a direct contribution to a country's economy through real estate purchases, government bonds, or development funds. Citizenship by Ancestry — Based on proof of lineage to a citizen of the target country. — Based on proof of lineage to a citizen of the target country. Citizenship by Marriage — Available to those who marry a citizen of the jurisdiction, often after a residency period. — Available to those who marry a citizen of the jurisdiction, often after a residency period. Special Merit Grants — Offered to individuals with notable achievements or contributions. Benefits for High-Privacy Clients For privacy-conscious individuals, offshore citizenship can deliver multiple strategic benefits: 1. Diversified Residency Rights An additional passport can provide the right to reside, work, and study in another jurisdiction, offering a legal refuge during times of political instability. 2. Enhanced Mobility Many offshore jurisdictions have visa-free or visa-on-arrival agreements with countries that may not be accessible under the client's original passport. 3. Legal and Diplomatic Protection Offshore citizenship ensures access to consular assistance from multiple governments, a significant advantage during travel or crises. 4. Asset Protection While offshore citizenship alone does not hide assets, it can be combined with lawful corporate and trust structures to protect holdings under the legal frameworks of jurisdictions with strong privacy laws. 5. Strategic Privacy Management Certain offshore jurisdictions are not part of intrusive global data-sharing agreements, allowing for greater control over personal information. Jurisdictions Known for Privacy-Focused Citizenship Caribbean Basin Nations Countries such as St. Kitts and Nevis, Dominica, Antigua and Barbuda, Grenada, and St. Lucia are renowned for their CBI programs. Many offer rapid processing times and visa-free access to over 140 countries. Privacy benefits include limited public disclosure of citizenship applicants and streamlined bank account opening under domestic privacy laws. Pacific Island Nations Nations like Vanuatu have developed citizenship programs attractive to privacy seekers due to minimal residency requirements and limited participation in global financial disclosure frameworks. European Microstates Jurisdictions such as Malta and Cyprus offer EU citizenship pathways that combine privacy with access to the European single market. Malta, in particular, has strong data protection laws aligned with the EU's GDPR, offering an additional legal layer for personal data security. Selective African Jurisdictions Countries like Comoros and Cape Verde have offered targeted citizenship programs in the past. While less common, these can provide unique diplomatic benefits in regions where other passports face restrictions. Legal Compliance and Risk Management Amicus International Consulting emphasizes that privacy-driven offshore citizenship must be approached with strict adherence to legal and tax obligations. Key considerations include: Understanding whether the new citizenship affects tax residency in any jurisdiction is crucial. Complying with bank and investment account reporting rules under FATCA and CRS. Being aware of travel entry and exit requirements, as some countries mandate that citizens enter on their national passport. Failure to address these issues can lead to penalties, revoked citizenship, or reputational damage. Case Study: A Privacy-Driven Citizenship Strategy A Central European business leader approached Amicus International Consulting after experiencing increased media scrutiny and political targeting in their home country. Their goal was to secure a jurisdiction that would safeguard family privacy, allow rapid relocation if necessary, and provide enhanced diplomatic protection during international travel. Amicus's approach included: Jurisdiction Analysis — Narrowed options to two Caribbean nations and one Pacific jurisdiction based on privacy laws, political neutrality, and global mobility score. Citizenship by Investment — Selected a Caribbean program with visa-free access to over 150 countries and robust data protection legislation. Corporate Structuring — Established an offshore holding company under the new citizenship jurisdiction to centralize business assets. Family Integration — Processed citizenship for immediate family members to ensure unified legal status. Ongoing Compliance — Created an annual review plan to ensure adherence to all reporting requirements. Within eight months, the client held a second passport, had diversified business operations into a politically neutral jurisdiction, and achieved the intended privacy objectives without violating any domestic or international laws. Selecting the Right Jurisdiction Choosing an offshore citizenship program involves balancing several factors: Political and Economic Stability — The jurisdiction should have a strong track record of governance and economic resilience. — The jurisdiction should have a strong track record of governance and economic resilience. Treaty Networks — Favorable visa and trade agreements increase the passport's practical utility. — Favorable visa and trade agreements increase the passport's practical utility. Privacy Laws — Strong domestic data protection regulations can shield personal details from unnecessary disclosure. — Strong domestic data protection regulations can shield personal details from unnecessary disclosure. Due Diligence Standards — High compliance standards ensure the program's global credibility. — High compliance standards ensure the program's global credibility. Residency Requirements — Some programs have no physical presence requirement, while others mandate short visits or extended stays. The Application Process Although timelines vary, the general process involves: Initial Consultation — Assessing client needs, preferred jurisdictions, and privacy priorities. Document Preparation — Birth certificates, police clearances, proof of funds, and investment documentation. Due Diligence Checks — Comprehensive background screening by both the advisory firm and the host government. Investment Transfer — Fulfilling program investment requirements, such as real estate purchases or contributions to national development funds. Approval and Oath — Final confirmation of citizenship, often followed by an oath of allegiance. Passport Issuance — Receipt of travel documents and registration in the national database. Geopolitical and Economic Drivers Demand for privacy-oriented offshore citizenship is influenced by: Global Surveillance Expansion — More countries are adopting biometric and AI-driven border systems. — More countries are adopting biometric and AI-driven border systems. Political Volatility — Rising authoritarianism and political targeting in certain regions. — Rising authoritarianism and political targeting in certain regions. Economic Nationalism — Restrictions on foreign investment and capital movement. — Restrictions on foreign investment and capital movement. Climate Resilience — Some clients choose jurisdictions less vulnerable to climate risks. Long-Term Maintenance Acquiring offshore citizenship is not a one-time event—it requires ongoing management: Passport Renewals — Typically every 5 to 10 years. — Typically every 5 to 10 years. Residency Maintenance — Meeting any physical presence requirements. — Meeting any physical presence requirements. Tax Compliance — Ensuring lawful filing in relevant jurisdictions. — Ensuring lawful filing in relevant jurisdictions. Diplomatic Relationship Awareness — Understanding how changing treaties may affect travel or residency rights. Policy Outlook Experts anticipate that while global oversight will increase, certain jurisdictions will continue to position themselves as privacy havens. Programs may evolve to include additional transparency measures while preserving core privacy protections. For high-privacy clients, early adoption of credible, compliant offshore citizenships remains a viable strategy. An Amicus International Consulting representative explains, 'Privacy is no longer an abstract concept; it is a tangible asset. Offshore citizenship, when lawfully acquired and maintained, gives our clients the legal frameworks they need to control that asset.' Contact Information Phone: +1 (604) 200-5402 Email: info@ Website: TIME BUSINESS NEWS
Yahoo
23-07-2025
- Business
- Yahoo
Tokenized Stocks Expose a Major Tax Reporting Gap in Crypto—Robin Singh
Global crypto tax reporting still has major cracks — and tokenized stocks may be the catalyst that forces the system to catch up. In recent weeks, platforms like Robinhood and Gemini have started offering tokenized stocks to users in the European Union. These blockchain-based derivatives mimic the price of real equities like Apple and Tesla and allow users to trade 24/7, free from the limitations of traditional market hours. That might sound like a leap forward for accessibility and innovation. But if these products continue to gain traction, and firms like Galaxy Digital believe they will siphon liquidity from traditional exchanges, regulators will face growing pressure to close the reporting gap between crypto platforms and traditional brokers. Despite the progress the crypto industry has made over the years, crypto tax reporting is still far behind compared to traditional asset exchanges in many parts of the world. There is still an obvious gap. Take Australia. The Australian Stock Exchange (ASX) provides the tax office with structured data, including sale prices, dates, and proceeds, which is automatically pre-filled into users' returns. For crypto, the ATO's approach is more like a gentle tap on the shoulder to its taxpayers. It presents a notification reminding users to check for taxable events, rather than a detailed pre-filled report. While the ATO knows you are active in crypto because crypto exchanges report you have an account, it does not have the same comprehensive oversight as it does with stock trading. That approach may have been justifiable in crypto's early days, when most activity was tied to speculative tokens or NFTs. But now, with platforms likely wanting to expand their offerings of tokenized stocks globally — which are not yet available in Australia but I dare say it is being considered — the lack of tax transparency becomes much harder to justify. Governments can't afford to let potential tax revenue slip through the cracks simply because they're happening onchain. I believe as tokenized stocks start to gain more and more attention over the coming months, regulators will be scrambling to ensure they are prepared. In the U.S., the IRS is already attempting to catch up. Its new crypto reporting rules, including the long-awaited Form 1099-DA, are set to take effect in 2026. These will require crypto brokers to report user transactions similar to traditional financial institutions. Meanwhile, Robinhood is reportedly preparing to launch tokenized stocks for U.S. customers. It raises a timely question…will that rollout coincide with the new IRS requirements? On a global scale, the OECD's Crypto-Asset Reporting Framework (CARF), also due in 2026, will enforce transaction data sharing across jurisdictions, similar to how banks comply with the Common Reporting Standard. If tokenized stocks are going to mimic real equities then the tax data reporting around them needs to match accordingly. The days of crypto existing in a regulatory gray zone are numbered. Whether platforms are ready or not, the era of full tax transparency is coming and tokenized stocks may be the turning point that forces it into reality. I believe that moment will arrive within the next five years. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economist
18-07-2025
- Business
- Economist
Looking to stash a few million away? Try a British military base
Britain | The Akrotiri loophole Photograph: Getty Images I T HAS LONG been assumed that the best way to hide money is to move it offshore. But opportunities for concealment in palm-fringed tax havens have narrowed over the past decade as international financial-transparency agreements have kicked in—including the Common Reporting Standard, a pact involving more than 120 countries to automatically share information on financial accounts. Of the remaining possibilities for shielding assets from prying eyes, one of the most alluring, it turns out, involves using vehicles not in Bermuda or the Bahamas, but Britain. Start with a proper look at what caused the problem The two countries hope it will alleviate a set of mutual ailments They have failed to focus on efficiency for the mass market A rotten episode over Afghan refugees implicates much of the British state Patrick Lane, our senior digital editor, on the finance minister's speech at Mansion House Pricey visas might scupper its chances
Mint
18-07-2025
- Business
- Mint
ITR 2025: Income tax department urges taxpayers to disclose foreign assets, income in their return
In a recent communication, the income tax (I-T) department has urged taxpayers to share details about assets held overseas and income accrued abroad. By disclosing the assets owned in the foreign land in their income tax return (ITR), taxpayers can not only avoid legal issues but also contribute to the country's development at the same time. Notably, the tax department in November last year ran a campaign to warn taxpayers of a ₹ 10 lakh penalty if they fail to disclose foreign held assets or income earned from abroad in their ITR. It is vital for the taxpayers to disclose their foreign assets and income in their income tax returns, reads the communication. The schedule FA (Foreign Assets) in the ITR form is primarily meant for reporting foreign assets, and Schedule FSI (Foreign Source Income) is meant for reporting income from foreign sources. Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) are international frameworks which help battle tax evasion by increasing transparency and cooperation among income tax authorities around the world. Under these frameworks, the Indian tax department gets access to detailed information about financial accounts held by its residents in foreign jurisdictions. These details include name, address, tax identification number (PAN), account number and balance and income details such as interest, dividends, and other financial proceeds. These details enable the tax department to evaluate the global income of Indian taxpayers and to find those taxpayers who have not revealed their foreign assets and income. The taxpayers can claim tax relief on the taxes paid overseas by filing Schedule TR (Tax Relief) along with Form 67 online. However, failure to disclose foreign assets and income can lead to strict penalties and even prosecutions per the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, income tax department has revealed in its latest communication. Compliance: Being transparent in declaring foreign assets in tax returns shows a taxpayer's commitment to compliance and good governance. It also fosters trust with tax authorities and avoids unnecessary scrutiny. Tax reliefs: Correct reporting enables taxpayers to claim tax relief on taxes paid overseas, thus avoiding double taxation and optimising their tax liabilities. For all personal finance updates, visit here
