Hong Kong has failed to meet an international deadline to prove it is not a tax haven, reports the South China Morning Post.
The city is under growing pressure to adopt new tax transparency standards set by the Organisation for Economic Co-operation and Development (OECD). At a G20 meeting in London last year, the Group of 20 major economies agreed to name offshore tax havens, Hong Kong being one of them. The group threatened to impose sanctions on tax jurisdictions that had not signed 12 tax treaties by last month. The newspaper says no penalties have been handed out yet.
Chu Yam-yuen, the commissioner for inland revenue, told the Post that Hong Kong is negotiating with other countries "at full pace." He believes Hong Kong will soon have 12 comprehensive agreements for the avoidance of double taxation (CDTAs).