A Hong Kong Special Administrative Region Government spokesman on May 10 welcomed an article by the Organization for Economic Cooperation and Development (OECD) commending Hong Kong’s transparent tax system and its efforts to comply with international standards of exchange of tax information.
“Hong Kong has built its position as an international financial center on the basis of free markets, low tax rates and a transparent tax system. Under the OECD criteria, Hong Kong, China, is not considered as a tax haven,” wrote Jeffrey Owens, OECD’s Center for Tax Policy and Administration director.
Mr. Owens said Hong Kong was the first major financial center in the region to align its exchange-of-tax-information arrangement with international standards. Other Asian countries have since followed its lead.
The Legislative Council’s Panel on Financial Affairs was briefed May 4 on the plan to introduce legislation this year to extend the Inland Revenue Department’s powers to exchange information with other tax jurisdictions. This will enable Hong Kong to extend its network of comprehensive avoidance of double taxation agreements.
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