Abstract
Internationally the pressure on nations perceived to be uncooperative and lacking in transparency in the operation of their taxation systems is intensifying. The Hong Kong Special Administrative Region (‘the HKSAR’) is not immune from feeling this pressure, and appears to be relenting, in part at least, through the recent gazetting and enactment of the Inland Revenue (Amendment) Ordinance 2013, which enables enhanced information exchange under comprehensive double tax agreements and the entering into of tax information exchange agreements. 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 HKSAR has relented further through negotiating an in substance agreement under the FATCA as at May 2014. Further pressure may come as well with the recent OECD’s Base Erosion and Profit Shifting (‘BEPS’) initiative. This article outlines the implications of these international developments, and examines the HKSAR’s responses to date.
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