Exchange of Information with Singapore

Singapore will also apply the new global standard for the exchange of information on capital income. LHP Tax-Lawyers inform on the risk of an estoppel upon discovery of an offence and offer legal advice and representation.

The participation of Singapore created a new situation for some investors, who wanted to transfer capital from Switzerland to Singapore. The automatic exchange of information carries the risk of an offence being discovered, which is an estoppel for a voluntary self-disclosure. Transfers aimed at concealing assets are not recommended by experienced tax-lawyers.

History and outlook: Exchange of information with Singapore

Against the backdrop of the expected flow of capital from Switzerland to Singapore, Germany entered into negotiations in respect of Singapore’s possible participation in the AIA. LHP Tax-Lawyersprovide an outlook on the ramifications to be expected if Singapore reports information on capital income.

Our clients sometime ask, what significance this new development may hold for capital transfers (e.g. from Switzerland) to Singapore. From a legal point of view, the transfer of capital for the purpose of concealing it is not helpful. This is because, on the one hand, banking information, e.g. from Switzerland, is stored for 10 years, and on the other hand there is the threat of so-called group enquiries addressed to Switzerland, which will target those trying to sneak out. Singapore will soon also report information automatically (see above). If a taxpayer is considering a voluntary self-disclosure, we recommend to discuss this in a consultation. This ensures, that all aspects of a voluntary self-disclosure can be explained and discussed. In the end, it is the decision of each individual account holder, whether he will make a voluntary self-disclosure or not.