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China joins OECD efforts to end tax evasion

China will share tax information with the world's 20 richest countries after signing an agreement overseen by international body the Organisation for Economic Co-operation and Development (OECD). 03 Jul 2015

All G20 countries committed to sign the OECD's Multilateral Convention on Mutual Administrative Assistance in Tax matters while at the Cannes G20 Summit in 2011, and China is the last to do so, the OECD said.

The convention allows exchange of information, simultaneous tax examinations and assistance in tax collection, the OECD said.

"Today’s signing is both timely and important as the G20 has endorsed automatic exchange of information as the new global standard," said OECD secretary general Angel Gurría. "This convention provides the ideal instrument to swiftly implement automatic exchange, and to do so with a wide range of partners. This also represents another significant step in the strengthening of collaboration between China and the OECD."

Australia, Canada, Chile, Costa Rica, India, Indonesia and New Zealand signed up to the OECD's Multilateral Competent Authority Agreement (MCAA) earlier this month, while the UAE signed a tax information sharing deal with the US, and Europe and Switzerland reached an agreement on exchanging information in May.

China also signed cooperation agreements and a 'joint programme of work for 2015-16' with the OECD and joined the OECD development centre, a "platform to bring together countries at different levels of development to discuss policies that stimulate growth and improve living conditions," the OECD said.