Summary: The strengthening of information exchange and common control among countries under globalization is a logical trend, and the fall of CRS is an important reality for China to strengthen tax regulation. From the tax development experience of countries around the world, its impact on investment in art would be: increasing the market share for investment in artefacts; regulating the market for investment in works of art; enhancing professionalism in the allocation of art assets; and actively promoting consensus on the value of artefacts.
China held its first financial exchange on 1 September 2018. CRS is a common guideline for the exchange of tax information between countries and regions, aimed at increasing tax transparency and combating cross-border tax evasion through the exchange of tax resident information between participating countries and regions.
People of China who are currently immigrants, persons with financial assets abroad, those who hold shell companies abroad to invest in money, those who have purchased large life insurance bills abroad, and those who have established an overseas family trust are at risk of tax clearance. The specific reviews consisted mainly of offshore financial assets, including, inter alia, deposit accounts, hosting accounts, cash value insurance policies, old-age contracts, securities futures accounts, equity claims. Therefore, it can be seen that non-financial assets, such as property, artefacts, poster antiques, precious metals, jewellery, aircraft crafts, run vehicles, etc., are not covered by the declaration of disclosure. As a result, the fallout of CRS has a positive impact on investment in art.
1 Increasing the market share for investment in arts
As noted earlier, because of the characteristics of non-financial assets, art will be the preferred object of investment in tax avoidance under CRS. But because of its high investment threshold, complexity and professionalism, we should not be overly optimistic about CRS’s growth benefits for the art market. Greater attention should be paid to the long-term normative and professional operational guidance.
2 regulating the market for investment in arts
Money-laundering, tax avoidance, foreign exchange aggregations are the real purpose of some people buying artefacts in past investment in art. In future asset disclosure checks, such transactions will be significantly reduced by operational difficulties. Future markets for investment in arts will be more regulated and more pure. The value of art and the resilience of artistic investment will gradually be recognized.
3 Enhancement of professionalism in the configuration of art assets
Although the CRS has contributed to the expansion of the market for investment in artefacts, investments in real estate, which are also non-financial assets, have been made less difficult because of their investment, and have a wide range of investments that have been made by high net value groups. How to guarantee the advantages of investment in art, that is, the value of the United States and culture beyond pure economic values; a reliable resource exchange platform that provides a common understanding; a value discovery process that is challenging; a mark that can be used to build a family culture; and a professional artist investor who needs to be in-depth explored, for example, in keeping with a personal interest preference. The identification of the proportion of investment in artefacts and the integration of investment classes with other assets is an important step towards enhancing the professionalism of the art asset allocation.
4 Consensus on the value of active promotion of artefacts
The increase in the volume and frequency of transactions of works of art as an important component of the assets of high net value groups would enhance the reliability of prices, thus providing a sound basis for value assessment and future transactions. In addition, real investment in money would attract the interest of investors, and the value of the art, the value of the art, the value of the art, and the cultural value of the art would, on the other hand, be supported by the price of the transaction. Thus, two sides have worked together to promote a common understanding of the value of artefacts and to enhance the human cultural process.