Singapore and Germany agree deal to tackle tax evasion

10/15/2012

Singapore and Germany have agreed to increase the level of information they exchange in a bid to crack down on tax dodgers.

Germany has been wary of some of its citizens moving their funds to Asia.

This is after Berlin signed a treaty with Switzerland targeting nationals who hide taxable income in Swiss banks.

Singapore has been taking measures to clamp down on foreigners shifting their funds to the city-state to avoid paying taxes in their own country.

Last week, it announced plans to penalise banks that facilitate tax evasion.

The Monetary Authority of Singapore said that financial institutions "must develop and implement policies, controls and procedures to effectively detect and deter the laundering of proceeds from wilful or fraudulent tax evasion through the financial system".