The Hong Kong Inland Revenue Department (“IRD”) continues its drive to conclude the magical 12 CDTAs required by the OECD in order for it to be taken off the watch-list of countries/jurisdictions with unacceptable exchange-of-information policies. On April 15, 2010, the IRD stated on its website:
“On 15 April 2010, Hong Kong and Switzerland had initialed an agreement for the avoidance of double taxation (CDTA) between Hong Kong and Switzerland in Berne. Both sides had reached a consensus on all the provisions of the agreement after the 2nd round of talks held this week, which lasted for 4 days. Both sides will arrange to have the agreement formally signed and put into effect as soon as practicable.
This is the 10th CDTA that Hong Kong has concluded so far that adopts the latest international standard on exchange of information.”
With 10 down, there are just two to go; any guesses as to which two countries will be next and when the CDTAs will be concluded? As I’ve stated in previous “Rants”, the Department’s only negotiation tool has been the adoption of the 2004 OECD Exchange of Information Article. Taxpayers should be aware of this, and also of the power the Department now has to ascertain financial information about a taxpayer and its ability to report this information to a treaty partner if it receives an appropriate request.
