Hong Kong Tax Alert: 23 April 2013
Legislative bill introduced to enable Hong Kong to enter into standalone TIEAs with other jurisdictions
Hong Kong is currently under intense international pressure to put in place a legislative framework enabling Hong Kong to enter into standalone tax information exchange agreements (TIEAs) with other jurisdictions, and to enlarge the scope of information which can be exchanged under comprehensive avoidance of double taxation agreements (CDTAs) negotiated by Hong Kong.
Although Hong Kong may be unable to withstand the international trend toward a greater exchange of information in respect of taxpayers, clients who have comments or concerns in respect of the provisions of the legislative bill (including the adequacy of the safeguards therein as regards the privacy and confidentiality of information exchanged) are nonetheless welcome to share them with their tax executives. The relevant comments and concerns can then be transmitted by EY to the relevant authorities in an appropriate manner.
In this issue, we examine the legislative bill introduced to enable Hong Kong to enter into standalone TIEAs with other jurisdictions via the following areas:
- Provisions of the Bill
- Enlarging the scope of exchange of information (Eol) arrangements
- Safeguarding the privacy and confidentiality of information of taxpayers under a TIEA
- Our comment