Brunei, S'pore ink double taxation agreement

BRUNEI yesterday signed a double taxation deal with Singapore, moving the Sultanate a step closer to being stricken off the Organisation of Economic Cooperation and Development's watchlist of tax havens.

The double taxation deal allows foreign governments to monitor and track down potential tax evaders.

The Avoidance of Double Taxation Agreement signed on the sidelines of the Apec 2009 summit between Brunei and Singapore is the sixth agreement for the Sultanate.

In September, wire reports said the OECD had hailed governments on a watchlist of tax havens, saying they have made big strides in the fight against tax evasion after they agreed to share banking information.

The OECD hailed moves, at various stages of implementation, by states and territories including Brunei, Costa Rica, Guatemala, Malaysia, the Philippines, Uruguay and the south Pacific island of Niue.

However, Brunei still remains on the grey list of the OECD as one of 15 states that has committed to the internationally agreed tax standard, but have yet to substantially implement them.

Singapore became the latest country to be put on the white list, as it had inked a similar agreement earlier in the day with France to bring their number of agreements to 12. Following the deal with Brunei, it now has 13.

AFP reported that OECD chief Angel Gurria hailed Singapore's move as "very welcome and it confirms that there is a new global environment of tax cooperation".

The deal signed with Singapore, indicates that Brunei, represented by the Brunei International Financial Centre is committed to the global fight against tax evasion.

Other countries that committed to the tax standard this year, but remain on the grey list include Andorra, Chile, Costa Rica, Guatemala, Malaysia, Philippines and Uruguay.

Singapore joins Austria, Belgium and Liechtenstein in the white list since the OECD released an earlier progress report in April.

Brunei's Second Finance Minister Pehin Orang Kaya Laila Setia Dato Paduka Hj Abdul Rahman Hj Ibrahim signed the agreement for Brunei, while Singapore was represented by Lim Hwee Hua, Minister at the Prime Minister's Office and Second Minister for Finance and Transport.The Brunei Times