China agencies team up to fight illegal forex flows

A rare deal sealed between two central government agencies signals Beijing’s readiness to pursue taxes beyond its borders, according to the South China Morning Post. The State Administration of Foreign Exchange (SAFE) and the State Administration of Taxation agreed last week to share information on a regular basis to monitor “tax sources overseas” and payments in foreign currencies. The specific agreement ­between two government agencies is unusual because the two regulators, both of which come under the State Council, already have ­internal communications channels. The memorandum was “significant” in the government’s commitment to crack down on irregularities such as “cheating on export tax refunds” and “illegally transferring foreign exchange funds abroad,” said a statement on SAFE’s website.