The issue of 7 million yuan in back taxes has become a trending topic, highlighting further tightening of tax regulations on overseas income.

News Overview

On November 11, 2025, tax authorities in Beijing, Fujian, Guangdong, Sichuan provinces, as well as Xiamen in Fujian and Shenzhen in Guangdong, simultaneously exposed six typical cases of failure to declare overseas income in accordance with the law. The recovered taxes and late payment fees ranged from 510,000 yuan to 6.987 million yuan. The authorities also provided guidance and guidance to resident individuals who failed to declare overseas income. At the same time, the tax authorities reminded taxpayers who received overseas income that if they discovered problems in their previous declarations, especially underreporting or omitting overseas income, they must promptly correct them and eliminate tax-related risks.

FinTax Brief Review

1. Upgraded Tax Supervision of Overseas Income: What Signals Do the Two Waves of "Tax Payment Supplements" Send?

In fact, this is not the first large-scale verification action by tax authorities this year. As early as March 2025, tax authorities in Hubei, Shandong, Shanghai, and Zhejiang simultaneously conducted verifications, legally addressing the risks of taxpayers who failed to declare overseas income, and recovering taxes ranging from over 120,000 yuan to over 1.4 million yuan.

2.2 Sharing of International Tax Information

In February 2014, the Organization for Economic Cooperation and Development (OECD) adopted the "Standard for Automatic Exchange of Financial Account Information in Tax Matters" (AEOI). This standard consists of two parts: first, the "Model Agreement between Competent Authorities," which stipulates how tax authorities of different countries should conduct automatic exchange of financial account information in tax matters; and second, the "Common Reporting Standard" (CRS), which stipulates the relevant requirements and procedures for financial institutions to collect and report account information of foreign tax resident individuals and enterprises.