Tax havens in spotlight as nine countries sign up to international tax protocols

A wealth of information about companies and individuals registered in well-known tax havens is set to come to light now that nine more countries have signed up to international tax protocols.

Luxembourg, Singapore and Austria, a traditionally secretive banking jurisdiction, were among the countries adding their names to a list of more than 50 nations who have agreed automatically to exchange tax information, help foreign nations to clamp down on tax debtors and allow countries to conduct wide-ranging joint multiparty tax investigations.

Austrian finance minister Maria Fekter hailed the news, announced at the OECD ministerial meeting in Paris, as a "huge step forward" for her country.

After decades of banking secrecy allowing foreign account holders to conceal assets, Fekter said "recent developments" had persuaded Austria of "the importance of such cross-border co-operation in order to minimise the opportunity for international tax avoidance and evasion".

However, Singapore's deputy prime minister, Tharman Shanmugaratnam, said UK overseas territories needed to come on board to ensure the convention functioned properly.

"Signing the convention reflects Singapore's commitment to tax co-operation based on international standards, but the standards can only work if all financial centres come on board," he said. "Singapore will work with international partners to achieve that, so that … offshore jurisdictions like the British Overseas Territories move together."