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Don't blacklist Hong Kong, says UK

By Zhang Xin (China Daily)
Updated: 2009-06-18 07:49

Britain is against the idea put forward by France of including Hong Kong on a tax-haven blacklist, the UK's top financial regulator said yesterday.

"I don't think we have seen Hong Kong needing to be covered by blacklisting," said Adair Turner, chairman of the UK's Financial Services Authority.

"Obviously, it is important we have common standards of not only the regulatory quality, about which there is no doubt at all in relation to Hong Kong, but also agreements on how we deal with tax."

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During the recent G20 meeting, French President Nicolas Sarkozy called for the inclusion of Hong Kong and Macao on the tax haven blacklist.

Hong Kong Chief Executive Donald Tsang responded to the idea by saying: "We have a very simple tax system. We have a low tax rate. We have a very transparent and very competent and well-respected banking and financial services system. Indeed, our tax rate is low, but that does not mean that we harbor irregularities in our system."

Turner agreed there was no problem as far as Britain was concerned.

"We certainly don't believe in Hong Kong being on any of the blacklists," he said.

Turner suggested the steady improvement over time of financial standards and the assurance that all parts of the world should meet those standards was "a priority seen at the G20".