http://www.channelnewsasia.com/news/singapore/s-pore-strengthens-tax-framework-to-comb/674546.html
Singapore is strengthening its international tax cooperation framework to combat cross-border tax offences.
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SINGAPORE: Singapore is strengthening its international tax cooperation framework to combat cross-border tax offences.
This follows a review of Singapore's current framework to co-operate with other countries after endorsing the internationally agreed standard for exchange of information for tax purposes (the "Standard") in 2009.
Among the key changes, the government will allow the Inland Revenue Authority of Singapore to obtain bank and trust information from financial institutions without having to seek a court order.
Singapore will extend exchange of information to all tax agreement partners, subject to reciprocity.
Singapore will also sign the Convention on Mutual Administrative Assistance in Tax Matters - an international agreement for bilateral tax cooperation among the convention's signatories.
Together, this will more than double the number of jurisdictions that Singapore will be able to exchange information with under the Standard from 41 to 83.
Singapore will also conclude an agreement with the United States to help financial institutions in Singapore comply with the Foreign Account Tax Compliance Act (FATCA) - a US law which requires all financial institutions outside of the US to pass information about overseas accounts held by American citizens to the US authorities on a regular basis.
Singapore will make the necessary legislative amendments to effect the changes before the end of this year.
Singapore's Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said: "These changes we are now making are a major enhancement, in step with the strengthening of international standards for exchange of information. But new standards can only work if all jurisdictions subscribe to them. Singapore will work with our international partners to achieve just that, and ensure there is no room for regulatory arbitrage."
Mr Tharman, who is also Chairman of the Monetary Authority of Singapore, added: "There is no conflict between high standards of financial integrity and keeping our strengths as a centre for managing wealth. Singapore will continue to be a vibrant wealth management centre, with laws and rules that safeguard legitimate funds and reject tainted money."
In a joint statement, the Finance Ministry, Monetary Authority of Singapore and the Inland Revenue Authority of Singapore reiterated the government's commitment to working with international partners to combat cross-border tax offences. This includes assistance in connection with the recent disclosure that the tax authorities of Australia, UK and US are investigating complex offshore structures that may be involved in wrongdoing.
The authorities added that Singapore's current laws already allow for assistance in connection with such wrongdoings, if any.
- AFP/fa
Singapore is strengthening its international tax cooperation framework to combat cross-border tax offences.
PHOTOS
Singapore skyline (Photo by: Hester Tan, channelnewsasia.com)
prev
ENLARGE
next
SINGAPORE: Singapore is strengthening its international tax cooperation framework to combat cross-border tax offences.
This follows a review of Singapore's current framework to co-operate with other countries after endorsing the internationally agreed standard for exchange of information for tax purposes (the "Standard") in 2009.
Among the key changes, the government will allow the Inland Revenue Authority of Singapore to obtain bank and trust information from financial institutions without having to seek a court order.
Singapore will extend exchange of information to all tax agreement partners, subject to reciprocity.
Singapore will also sign the Convention on Mutual Administrative Assistance in Tax Matters - an international agreement for bilateral tax cooperation among the convention's signatories.
Together, this will more than double the number of jurisdictions that Singapore will be able to exchange information with under the Standard from 41 to 83.
Singapore will also conclude an agreement with the United States to help financial institutions in Singapore comply with the Foreign Account Tax Compliance Act (FATCA) - a US law which requires all financial institutions outside of the US to pass information about overseas accounts held by American citizens to the US authorities on a regular basis.
Singapore will make the necessary legislative amendments to effect the changes before the end of this year.
Singapore's Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said: "These changes we are now making are a major enhancement, in step with the strengthening of international standards for exchange of information. But new standards can only work if all jurisdictions subscribe to them. Singapore will work with our international partners to achieve just that, and ensure there is no room for regulatory arbitrage."
Mr Tharman, who is also Chairman of the Monetary Authority of Singapore, added: "There is no conflict between high standards of financial integrity and keeping our strengths as a centre for managing wealth. Singapore will continue to be a vibrant wealth management centre, with laws and rules that safeguard legitimate funds and reject tainted money."
In a joint statement, the Finance Ministry, Monetary Authority of Singapore and the Inland Revenue Authority of Singapore reiterated the government's commitment to working with international partners to combat cross-border tax offences. This includes assistance in connection with the recent disclosure that the tax authorities of Australia, UK and US are investigating complex offshore structures that may be involved in wrongdoing.
The authorities added that Singapore's current laws already allow for assistance in connection with such wrongdoings, if any.
- AFP/fa
