NEWS
Oct-22-2009 Singapore set to leave the "Grey List"
On the 19th October The Singapore Parliament passed the Income Tax Exchange of Information Bill. Effectively, this lifts the 'domestic interest condition' which previously restricted the release of information available to third parties, under a Comprehensive Double Taxation Treaty ("DTA"), to information that was relevant to the determination of a Singapore tax liability. The adoption of the 2008 OECD standard for exchange of information has enabled Singapore to reach an agreement with 20 jurisdictions for the inclusion of the standard in its DTAs. Singapore has already formally signed 11 of such agreements namely with, Australia, Austria, Bahrain, Belgium, Denmark, Mexico, the Netherlands, New Zealand, Norway, Qatar and the United Kingdom and hopes to finalise many of the remainder by the end of 2009. Singapore also hopes to commence discussions with the USA on a DTA later this year.
The legal release of comprehensive tax information held by Banks and Trust companies had been a concern in the past but Finance Minister, Tharman Shanmugaratnam, assured Parliament that "fishing expeditions" would not be entertained, requests must be "clear, specific, relevant and consistent with the exchange of information standard". "Spurious and frivolous" requests would be rejected immediately by the Inland Revenue Authority of Singapore and by the High Court should the requests for information be protected under the Banking Act and Trust Companies Act.
Mr Shanmugaratnam also noted that Hong Kong and Switzerland were taking similar steps and considered that the passing of the Bill would not prejudice Singapore's status as a financial status indeed, it would enhance it's reputation.