Hong Kong: Hong Kong commits to the Common Reporting Standard
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hong Kong: Hong Kong commits to the Common Reporting Standard

lau.jpg

bowdern.jpg

Ayesha Lau


Darren Bowdern

The Standard for Automatic Exchange of Financial Account Information in Tax (the Common Reporting Standard (CRS)), which is intended to facilitate the automatic exchange of financial information, was approved by the G20 finance ministers and Central Bank governors at their meeting in Cairns, Australia on September 20-21 2014. Shortly before that, in an announcement on September 15 2015, the Secretary for Financial Services and the Treasury, Professor KC Chan, committed Hong Kong to implementing the CRS.

Existing legislation in Hong Kong only provides for exchange of information on a request basis and the adoption and implementation of the CRS will require amending legislation. With this in mind, the secretary further announced that the HKSAR Government would soon engage stakeholders, address policy and legal issues, and ultimately seek the Legislative Council's approval for the legislation required to implement the new global standard for the automatic exchange of information.

This approach is similar to that adopted by the government when it introduced legislation in 2013 enabling Hong Kong to enter into standalone tax information exchange agreements (TIEAs). In this instance, the consultation process lasted around 12 months and included consultations with business and industry bodies, as well as legal, financial and accountancy representative groups.

The government has indicated that it expects legislation to allow for the automatic exchange of information under the CRS to be enacted during 2016 with the first exchanges of information expected in 2018.

In a related development, Macau has announced that, like Hong Kong, it will shortly commence legislative measures to amend its domestic law so it is able to fully comply with the CRS.

Ayesha Lau (ayesha.lau@kpmg.com) and Darren Bowdern (darren.bowdern@kpmg.com)

KPMG

Tel: +852 2826 8028 & +852 2826 7166

Website: www.kpmg.com/sg

more across site & bottom lb ros

More from across our site

Experts from TP tech provider Aibidia also warned ITR that companies ignoring pillar two is a ‘huge issue’ and a ‘red flag’
Hanno Berger was originally handed an eight-year sentence over an estimated $11 billion tax fraud; while in other news, France calls for minimum tax on the super-rich
Amount B is meant to increase simplicity and reduce uncertainty, but US TP specialists claim it may lead to controversy
Tax Foundation economist Alan Cole also signalled that pillar two has a 'considerable chance' of failing
The Labour Party is working hard to convince business that it will bring stability to tax policy if it wins the next UK general election. But it will be impossible to avoid creating winners and losers
Burrowes had initially been parachuted into the role last summer to navigate the fallout from the firm’s tax leaks scandal
Barbara Voskamp is bullish on hiring local talent to boost DLA Piper’s Singapore practice, and argues that ‘big four’ accountants suffer from a stifled creativity
Chris Jordan also said that nations have a duty to scrutinise the partnership structures of major firms, while, in other news, a number of tax teams expanded their benches
KPMG has exclusive access to the tool for three years in the UK, giving it an edge over ‘big four’ rivals
But the US tax agency’s advice is consistent with OECD guidance and shouldn’t surprise anyone, other experts tell ITR
Gift this article