Tax secret of Singapore and Estonia will not exist any more

05.03.2012 On March, 30th, 2012, the Protocol directed on simplification of tax information exchange within the limits of the existing double taxation agreement between Singapore and Estonia will come into force.

The agreement on tax information exchange between Singapore and Estonia was concluded on September, 18th, 2006 and came into force on December, 27th, 2007. The Protocol on amendments addition was signed on February, 3rd, 2011.

The new protocol including the standard coordinated at the international level of the Organization of economic cooperation and development (OECD) for information interchange with a view of taxation in the existing agreement on double taxation, will be applied to «taxes of any sort and a kind» which are raised in both countries.

Tax departments of two countries will open for themselves more ample opportunities for information interchange about tax bearers. It is provided that any tax department can't refuse information granting only because the information isn't necessary for the internal purposes or because the information is kept by bank or similar institution.

Expert’s opinion

«The new signed agreement of tax information exchange underlines once again that a transparency in relations between the countries is the best way to prove the adherence to the international standards.

All new countries try to sign such reports from which, appear, to expect anything good it is impossible.

Nevertheless, before to "escape" from the concrete country, it is necessary to understand, that an answer is not given on each inquiry at once. Moreover, this inquiry should be made by not official bodies, but also it should be assumed the answer which will be given. And hardly each country will be interested in granting of full information on the businessmen investing their capitals».

On the basis: http://www.iras.gov.sg

Lomakina Irina ( the director of Moscow office of Honest & Bright)