UK Signs Agreement with Singapore for Automatic Exchange of Financial Account Information
A competent Authority Agreement was need between the two countries in order to make decent trade agreements. A Common Reporting Standard (CRS) that was needed in order for the two countries to conduct business was signed between the two countries. Later it was decided to include Australia so that all three countries could conduct business with the same measure of reporting financial account information.
Common Business Practices for Exchange of Financial Information
The fact is that without a standard agreement that is recognized by everyone countries could not conduct business fairly and legally. Singapore has become a leading nation in the Asian world that wants to conduct business with Great Britain and Australia. So Her Majesty’s Revenue and Customs and the Inland Revenue Authority of Singapore entered into the “Competent Authority Agreement”. This is based on the Common Reporting Standard and is recognize internationally, making Singapore’s standard of trade much higher.
Condition of the Agreement
The agreement will take effect in 2018 under the following conditions:
- The object is to minimize regulatory arbitrage among all major financial centers.
- Jurisdictions that have a robust framework of law may only engage in AEOI practices. They must be able to ensure information is keep confidential and stop any unauthorized use.
- Full disclosure must be keep between the AEOI partners in the exchange.
This process will start in September 2018 by both Singapore and the United Kingdom. Under their agreement, full disclosure will commence giving Singapore financial account information held by the United Kingdom and full disclosure of account information held by Singapore to the United Kingdom.
The Background Information
Hence, it is necessary for countries to have an exchange of information because of tax purposes for their citizens. The Automatic exchange of information referred to as (AEOI) based on the CRS is the regular exchange of financial account information between jurisdictions for tax purposes. It helps to detect any evasion of taxes by the taxpayers. Some tax payers are inclining to use off shore bank accounts in order not to pay either country what is owing.
This agreed standard among countries helps prevent any tax evasions and helps to regulate how business is conducting in each country. Therefore, Singapore has become a hub for business and financial institutions. Great Britain noted that for doing business in the Asian market, they felt that they needed the agreement to help sustain their financial investments. Australia is also a nation with many investments and wants to be a part of this agreement to protect their interests.
In conclusion, the exchange of information agreement has made trading amongst the countries much easier. The financial market grows stronger with the AEOI agreement between Great Britain, Australia, and Singapore. Now the ability to stop citizens from tax evasion has almost become complete. The offshore banking accounts are no longer able to keep the revenue that belongs to each of the countries. This helps the economy of the country. When the proper revenue is collecting it strengthens the financial growth of all the countries involving.
Automatic Exchange of Financial Account Information agreement will benefit both parties. In term of economic growth or convenient for each other. But if you fall into money circumstance may contact 1st LG Credit.
1st LG Credit is one of the most reliable licensed money lenders in Singapore. Our company was formerly name as Lekshmi Moneylender. Our office is open on Sunday as well! Moreover, we are legal money lenders with a lot of good reviews. If you need a cash immediately, just call us at +65 6299 6654.
Or drop by our office at 304 Orchard Road #02-29 Lucky Plaza, Singapore, 238863.