Mr CLARE (Parliamentary Secretary for Employment) (9:52 AM) —I move:

.Today I introduce the International Tax Agreements Amendment Bill (No. 2) 2010 to give the force of law to the second protocol to the tax treaty with Singapore which will upgrade the exchange of information provisions in that treaty to the internationally agreed tax standard.

The government is a global leader in the implementation of the international standard of tax transparency. In line with this standard, the upgraded exchange-of-information provisions in the protocol between Australia and Singapore will allow the tax authorities of both countries to exchange a wider range of information on a wider range of taxes.

In particular, the new provisions will provide that neither tax administration can refuse to provide information solely because it does not require the information for its own domestic purposes or because the information is held by a bank or similar institution.

The government is a global leader in promoting international cooperation to combat cross-border tax evasion including holding the chair of the Global Forum on Transparency and Exchange of Information for Tax Purposes, which is responsible for assessing and monitoring the effective implementation of the internationally agreed standard for exchange of information for tax purposes. The enhanced provisions in the second protocol to the tax treaty with Singapore are an important tool in Australia’s efforts in this regard, by increasing the probability of detection when taxpayers participate in abusive tax arrangements. The protocol will further facilitate the prevention of tax evasion by facilitating the exchange of information that predates the protocol.

The Joint Standing Committee on Treaties has considered this protocol and has recommended that binding treaty action be taken.

Full details of the amendments brought forward in the bill are contained in the explanatory memorandum.

I commend the bill to the House.

Debate (on motion by Mrs Gash) adjourned.