Tax havens: Will Hong Kong, Macau be named? China worries
Hong Kong, which has the largest stock exchange in Asia, allows foreigners great flexibility for brining in funds from across the world. Top global Indian leaders
By Saibal Dasgupta, TNN |
BEIJING: After G-20 's decision to crack down upon tax havens. Chinese leaders are worried that Hong Kong and Macau will be included among the list of tax havens. At stake is Hong Kong's position as a safe place for parking funds by the world's rich individuals and corporations.
G-20 has asked OECD to report back on tax haven cooperation by November when finance ministers of these countries meet in Scotland. China on Friday said that Hong Kong and Macau, both special administered regions, should not be labelled as tax havens.
Hong Kong, which has the largest stock exchange in Asia, allows foreigners great flexibility for brining in funds from across the world while Macau is the world's biggest gambling centre in terms of revenues, having surpassed Les Vegas Strip two years back.
"If put on the black list, these two cities will lose their special appeal and popularity among investors," sources said. Hong Kong and Singapore, which also offer a lot of flexibility for money transfers from other countries, are major centres for private banking and wealth management. Thousands of rich people across the world use these centres to park their money.
"China supports the international community's efforts to tighten financial regulation , crack down on tax evasion, and international cooperation to prevent tax evasion," Chinese foreign ministry spokesman Qin Gang has said. But "it is groundless to label Hong Kong and Macao as tax havens, to which China expresses firm opposition," he said.
Qin said China has played a key role in persuading the international community about the need for enhanced cooperation to overcome the financial crisis.
G-20 has asked OECD to report back on tax haven cooperation by November when finance ministers of these countries meet in Scotland. China on Friday said that Hong Kong and Macau, both special administered regions, should not be labelled as tax havens.
Hong Kong, which has the largest stock exchange in Asia, allows foreigners great flexibility for brining in funds from across the world while Macau is the world's biggest gambling centre in terms of revenues, having surpassed Les Vegas Strip two years back.
"If put on the black list, these two cities will lose their special appeal and popularity among investors," sources said. Hong Kong and Singapore, which also offer a lot of flexibility for money transfers from other countries, are major centres for private banking and wealth management. Thousands of rich people across the world use these centres to park their money.
"China supports the international community's efforts to tighten financial regulation , crack down on tax evasion, and international cooperation to prevent tax evasion," Chinese foreign ministry spokesman Qin Gang has said. But "it is groundless to label Hong Kong and Macao as tax havens, to which China expresses firm opposition," he said.
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Qin said China has played a key role in persuading the international community about the need for enhanced cooperation to overcome the financial crisis.
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