Singapore And Australia Add Tax Information Exchange To DTA

by Mary Swire, Tax-News.com, Hong Kong

09 September 2009

Singapore and Australia have signed a protocol to their existing double taxation agreement, incorporating the internationally agreed Standard for the exchange of information upon request for tax purposes.

Singapore's High Commissioner to Australia, Albert Chua, and Australia's Assistant Treasurer, Nick Sherry, signed the protocol in Canberra. It is the sixth agreement Singapore has signed that incorporates the internationally-agreed OECD standard for the exchange of information upon request for tax purposes.

The protocol will give the tax authorities of both countries a greater ability to exchange taxpayer information and to exchange information on a wider range of taxes.

It also provides that neither tax authority can refuse to provide information solely because it does not require the information for its own domestic purposes, or because the information is held by a bank or similar institution.

"This is a significant step in enhancing Australia's efforts to combat tax avoidance and stamp out evasion," Nick Sherry observed, continuing:

"It will support global cooperation on tax matters and improve information exchange and transparency – important priorities for the G20."

"The Australian Government is determined to ensure all taxpayers meet their tax obligations and the signing of this protocol will help this aim," he added.

"It's also another signal to those jurisdictions operating as tax havens that countries such as Australia and now Singapore are determined to work together to end tax avoidance."

The protocol will enter into force after Singapore's legislative amendments to give effect to the OECD standard have been approved by parliament and gazetted into law, and 30 days after both countries advise completion of their ratification procedures.

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