In a bid to curb tax evasion, the Inland Revenue Authority of Singapore (IRAS) has signed a competent authority agreement with the Australian Taxation Office (ATO) that will allow automatic exchange of financial account information (AEOI) based on the common reporting standard in the two countries.
The agreement will allow IRAS to share with ATO financial account information of accounts in Singapore held by Australian tax residents, and ATO to share financial data of accounts in Australia held by Singapore tax residents with IRAS.
The countries will begin the data exchange from September 2018.
"Both jurisdictions are satisfied with the confidentiality rules and data safeguards that are in place in the other jurisdiction to ensure the confidentiality of information exchanged and prevent its unauthorized use," the Australian Taxation Office and Inland Revenue Authority of Singapore said in a joint statement.
The CRS is a global standard endorsed by OECD and Global Forum for Transparency and Exchange of Information for Tax Purposes. Till date, over 100 jurisdictions have adopted the standard and are expected to start data exchange from 2017 or 2018.