Abstract: Internationally the pressure on nations perceived to be uncooperative and lacking in transparency in the operation of their taxation systems is intensifying. International organisations, such as the OECD and the EU, are riding the wave of enhanced cross-border information flows, growing ever more confident when nations such as Switzerland, Singapore and numerous tax havens worldwide, agree to commit to enhanced transparency. Momentum is also gathering pace as nations clamber to negotiate an intergovernmental agreement with the United States under its much criticised Foreign Account Tax Compliance Act (FATCA). The Hong Kong Special Administrative Region (HKSAR) is not immune from feeling this pressure, and appears to be relenting, in part at least, through the recent gazetting of the Inland Revenue (Amendment) Bill 2013 which would enable enhanced information exchange under comprehensive double tax agreements (DTAs) and the entering into of tax information exchange agreements (TIEAs). This paper outlines the implications of these international developments and examines HKSAR’s responses to date. Predictions for what the future may hold for HKSAR will be contemplated.

This paper by Professor Adrian Sawyer Professor Adrian Sawyer Professor of Taxation in the UC Business School, University of Canterbury AIIFL Profile › can be downloaded: here .