Identifier
Created
Classification
Origin
09SINGAPORE381
2009-04-22 02:24:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Singapore
Cable title:  

SINGAPORE REACTION TO OECD TAX HAVEN LIST

Tags:  EFIN OECD SN 
pdf how-to read a cable
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RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #0381/01 1120224
ZNR UUUUU ZZH
R 220224Z APR 09
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 6630
INFO RUCPDOC/USDOC WASHDC
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBJ/AMEMBASSY BEIJING 2971
RUEHFR/AMEMBASSY PARIS 0338
RUEHRL/AMEMBASSY BERLIN 0149
RUEHHK/AMCONSUL HONG KONG 6482
UNCLAS SECTION 01 OF 02 SINGAPORE 000381 

STATE PASS USTR
TREASURY FOR RAND

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: EFIN OECD SN
SUBJECT: SINGAPORE REACTION TO OECD TAX HAVEN LIST

REF: A. SINGAPORE 294 (NOTAL) B.SINGAPORE 372

UNCLAS SECTION 01 OF 02 SINGAPORE 000381

STATE PASS USTR
TREASURY FOR RAND

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: EFIN OECD SN
SUBJECT: SINGAPORE REACTION TO OECD TAX HAVEN LIST

REF: A. SINGAPORE 294 (NOTAL) B.SINGAPORE 372


1. (SBU) Summary: Singapore Deputy Secretary of Finance Ng
Wai Choon, in the course of a meeting with the Charge
d'Affaires (CDA) on another matter, expressed concern that the
OECD's process of classifying tax havens is not transparent or
fair. The GOS was disturbed that the OECD had not placed Hong
Kong or Macau on its "gray list," Ng said. CDA responded that
he had no instructions but would report Ng's comments to
Washington. Ng said the GOS plans to take steps to bring its
practices on tax information sharing in line with OECD
standards (ref A). He said the GOS hopes to open discussions
on a Double Taxation Treaty with the United States. Finatt
noted that the USG has concerns about the "treaty shopping"
issue. End Summary.

Singapore Concerned about OECD Process
--------------


2. (SBU) At an April 17 meeting requested by CDA to discuss
issues relating to Kosovo's bid to join the IMF and World Bank
(ref B),Singapore's Deputy Secretary of Finance Ng Wai Choong
raised concerns about the integrity of the OECD's process for
determining classifications of tax havens, citing the OECD's
apparently last-minute decision to remove Hong Kong and Macau
from the lists of jurisdictions altogether. (Note: The two
were mentioned only as a footnote to China's rating.) Ng said
the GOS believes there should be a transparent, impartial and
multilateral approach for monitoring and assessing compliance
with international standards on the part of all jurisdictions,
onshore and offshore. The Ministry has written to the OECD
Secretary General to confirm that the OECD classifies Hong
Kong and Macau in the same category as other financial centers
like Singapore, Switzerland and Luxembourg, i.e. jurisdictions
that have committed to the OECD Standard but have yet to
substantially implement it. Without the inclusion of Hong
Kong and Macau, the GOS believes the process cannot be
regarded as impartial and trustworthy. CDA responded that he
had no instructions but would report Ng's comments to
Washington. Ministry of Finance staff told Finatt separately
that unless Hong Kong and Macau are included "the legal and
moral basis for any subsequent actions arising from such a
categorization will also be challenged."

Singapore's Status
--------------


3. (SBU) Ng said that the GOS accepts the OECD's
classification of Singapore as not a "tax haven" but rather a
"financial center" that has committed to the OECD Exchange of
Information Standard but has yet to substantially implement
it. Ng said he preferred that there be no lists, but
acknowledged Singapore has shortcomings in sharing of tax
information. (Note: The OECD's April 2 list, formally known
as "A Progress Report on the Jurisdictions Surveyed by the
OECD Global Forum in Implementing the Internationally Agreed
Tax Standard," is available at
http://www.oecd.org/dataoecd/38/14/42497950.p df. End Note.)


Singapore Still Interested in Tax Treaty with USG
-------------- --------------


4. (SBU) Ng relayed Singapore's continued interest in
negotiating a Double Taxation Treaty (DTA) with the United
States. He said the GOS plans to take steps to bring its
practices on tax information sharing in line with OECD
standards. (Note: Previous discussions between Singapore and
U.S. Treasury tax policy experts in the fall of 2006 had
faltered on two key areas of disagreement: (1) Singapore's
limits on exchanging information and (2) the U.S. policy of
limiting benefits to Singaporean individuals and companies to
avoid "treaty shopping" or use of a bilateral tax treaty by
third-country entities.) Doreen Tan, the Ministry of
Finance's Chief Tax Policy Officer, said the upcoming changes
to Singapore's tax laws should overcome the disagreement over
information sharing. Finatt noted that the USG also has
concerns about the "treaty shopping" issue. Tan could not
confirm whether there had been a change in GOS views with
respect to the U.S. requirement to limit benefits to avoid
treaty shopping.

SINGAPORE 00000381 002 OF 002



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