HONG KONG (Jan 3): China’s plan to cut taxes in 2019 for the masses has the nation’s super-rich running for cover on concern the government will make up the shortfall by going after the wealthy.
Changes to the tax regime as of Jan. 1 mean authorities will be paying closer attention to assets and investment holdings. In a nation where personal wealth is estimated to have climbed to a record US$24 trillion ($32.8 trillion) in 2018 – US$1 trillion of which is held abroad – that potentially offers rich pickings. Anxiety over how the new rules will be enforced has already triggered a flood of Chinese clients seeking to create overseas trusts.
