Hong Kong in line for surge in illicit fund inflows
Singapore, EU moves to boost transparency may boost city's allure for global tax cheats
Hong Kong may see a surge in illicit money inflows in the wake of twin moves by the European Union and Singapore to crack down on tax evasion.
The EU's initiative to capture taxes on an estimated €1 trillion (HK$10 trillion) avoided each year and Singapore's separate move to avoid being caught like Switzerland in a row over international tax disclosure are likely to push money towards more opaque locations.
At a meeting in Brussels yesterday, the European Commission agreed to start negotiations with Switzerland, Liechtenstein, Monaco, Andorra and San Marino to share more tax information with the EU.
"The decision represents an important step in the EU's efforts to clamp down on tax evasion and tax fraud," the European Commission said in a statement.
EU member states are encouraged to identify tax havens and place them on blacklists and non-EU nations will be encouraged to adopt EU tax transparency standards, it said.
Singapore, the world's fourth-biggest offshore financial centre, said yesterday it would adopt new measures to make it easier to share information on potential tax evaders with other countries, including the United States.