Until now, China has entered into tax information exchange agreements (TIEA) with 6 offshore financial centers – Bahamas (in force since 28 August 2010), British Virgin (in force since 30 December 2010), Isle of Man (in force since 14 August 2011), Guernsey (in force since 17 August 2011), Bermuda (in force since 31 October 2011) and Jersey (in force since 10 November 2011).
These agreements are directed at the avoidance of income tax through tax havens. Taking the TIEA between China and British Virgin for instance, the taxes regarding which China and the British Virgin Island's can exchange information on, include personal income tax and enterprise income tax issues for China and income tax, payroll tax and property tax for the British Virgin Islands. Under the agreement, the tax authority of both parties shall exchange tax information and provide assistance for each other – the “information” refers to those predictable and related, including taxes determination, assessment, verification and collection, tax demand and enforcement, tax investigation or prosecution. Further, the British Virgin Islands shall provide the following information as requested by China: 1) any information known by banks, financial institutions or any agents or trustees; 2) any information on legal and beneficial ownership of companies, partners, trusts, funds or others, including the ownership of all in the same ownership chain; 3) any information on trust settlors, trustees, beneficiaries and supervisors; 4) any information on founders of funds, fund council members, beneficiaries, directors or other seniors.