Hong Kong businesses may be affected as EU urges tax havens to open their books
Much of the city's offshore business is done through places that may act against tax evaders
In a move with implications for Hong Kong, more tax havens are to open their books under pressure from the European Union.
At a meeting on May 13, EU finance ministers may reach an agreement on measures to eradicate tax evasion and tax havens, said Finnish Finance Minister Jutta Urpilainen at an international seminar on tax fraud and evasion in Helsinki on Monday, the Finland Times reported.
A letter on April 24 by the Irish finance minister, Michael Noonan, and EU tax commissioner Algirdas Semeta urged the European Commission to start talks with five tax havens - Andorra, Liechtenstein, Monaco, San Marino and Switzerland - to reveal information. It proposed six other measures, including a package against value-added-tax fraud.
"Our common goal should be the rapid adoption of all these measures before the end of June," said the letter.
Semeta said: "The EU will be an active partner in seeking automatic exchange of information as the global standard. We will do everything necessary to secure commitments on this at the G8 Summit in June and the G20 Summit in September."
China is a member of the G20.