Singapore on 'grey list'

April 4, 2009

S'pore on 'grey list'

By Michelle Tay
		The OECD named two lists of nations - one black and one grey - that were not doing enough to help crack down on tax cheats and excessive bank secrecy. -- PHOTO: AGENCE FRANCE-PRESSE

SINGAPORE has been placed on a 'grey list' of countries that have agreed to comply with rules on tax dodging but have yet to act.

Those listed On the black list are these four: Costa Rica ... more

The Organisation for Economic Cooperation and Development (OECD) on Thursday named two lists of nations - one black and one grey - that were not doing enough to help crack down on tax cheats and excessive bank secrecy.

The lists were made public as the Group of 20 leaders from rich and developing nations declared at their London summit that the age of banking secrecy was over and that they would no longer tolerate shady havens draining away badly needed tax revenue.

The grey list comprises 38 countries - including Switzerland and Monaco - that say they have 'committed to the internationally agreed tax standard, but have not yet substantially implemented' it.

Four places that have not yet agreed to change banking secrecy practices were put on a blacklist for being uncooperative tax havens.

The OECD estimates that anywhere between US$1.7 trillion (S$2.6 trillion) and US$11.5 trillion of assets are held offshore globally.

Reacting yesterday to being on the grey list, the Swiss finance minister issued a statement saying: 'The list does not specify the criteria on the basis of which it was drawn up. Switzerland is not a tax haven.'

The Ministry of Finance told The Straits Times: 'As expected, Singapore has not been classified by the OECD as a tax haven but as a financial centre that has committed to the internationally recognised tax standard.

'This recognises that Singapore has endorsed the OECD Standard for the exchange of information through Avoidance of Double Taxation Agreements (DTAs), and intends to implement the Standard by effecting legislative amendments later this year and negotiating and concluding relevant DTAs.

'Singapore's position in this regard is no different from that of other major financial centres such as Hong Kong, Switzerland and Luxembourg.'

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