As of May 1, 2016 the Multilateral Convention on Mutual Administrative Assistance in Tax Matters took effect and became the law of the land in Singapore. The Convention, developed jointly by the Organization of Organization for Economic Cooperation and Development (OECD) and the Council of Europe in 1988. It was amended in 2010 to respond to a call by the Group of Twenty (G-20) nations that it be aligned to the new international standard on the automatic exchange of information and that it be opened up to all countries. And according to the OECD it “is the most comprehensive multilateral instrument available for all forms of tax co-operation to tackle tax evasion and avoidance, a top priority for all countries.”
The May 1 effective date comes some four months after Singapore ratified the Convention January 2016 and is part of effort to increase tax transparency and combating cross-border tax evasion in Asia’s top financial and business hub. The Convention will allow Singapore’s Inland Revenue Authority the ability to request information from other tax authorities, and seek assistance in collecting outstanding tax debts.
This move by the The Little Red Dot, as Singapore is affectionately called, in my opinion has further strengthen its position as a global financial hub.