Implementing tax information exchange in Singapore and Hong Kong : implications for the OECD Initiative

Singapore and Hong Kong are two major regional financial centers in Asia Pacific and are competitors for foreign investment funds. This article describes the OECD initiatives in liberalizing exchange of information (EoI) internationally and particularly in respect to Singapore and Hong Kong. We inform on how Singapore and Hong Kong have responded to the international pressures and consider the internal and external influences on each jurisdiction. The article also provides some possible explanations for the divergence in the response of each of these jurisdictions in relation to liberalization of EoI and suggests some possible amendments to the OECD approach to enhance the effectiveness of the initiative.