The OECD has set a threshold of 12 international tax exchange information agreements as "proof" of being a good country. Having 12 Agreements means that you're on the white list and not labelled as a tax haven or grey country.....gee I never knew the best corporate tax haven in the world: Delaware was a separate country from the US?
The standard OECD Agreement requires: "exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to a domestic tax interest requirement or bank secrecy for tax purposes. It also provides for extensive safeguards to protect the confidentiality of the information exchanged."
Singapore has just signed 1 (with Belgium) and now about to enter its second (with France)......10 more to go. Plays out like a "dating game" of sorts, countries running around trying to fill their dance card with willing partners.
So what does this have to do with us? Some call this as another nail in the coffin of banking secrecy. Damm......looks like the MAS and IRAS have some laws to amend. It also means that our French and Belgian clients that aren't squeaky clean will now have something to worry about. Close the account and run to another jurisdiction? Get another passport and open accounts under the new identity? Add more layers of BVI companies to an already complicated structure?
Hmmm.....good questions to ask at the STEP seminar next week: http://www.step.org.sg/events/exchange%20of%20information%20(21jul09).pdf
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