Tackling tax abuse

Though OECD work on making international tax fairer began over 50 years ago, it was not until 1998 and a report on harmful tax competition that the OECD stepped up its work against tax evasion, tax havens and abuse.

Since then it has been committed to counter harmful tax practices and improve compliance, encourage exchange of information, combat aggressive tax planning and corruption, and improve co-operation between tax and anti-money laundering authorities.

The 1998 report defined a tax haven as a country or territory where there is no or nominal tax on the relevant income, combined with a lack of effective exchange of information, a lack of transparency, and no substantial economic activities. The OECD has also developed standards of transparency and exchange of information that have been endorsed by governments and international organisations throughout the world and which serve as a model for most of the 3,000 bilateral tax conventions in existence today.

The standards require several things, such as exchange of information on request where it is "foreseeably relevant" to the administration and enforcement of the domestic laws of the treaty partner, and respect for taxpayers' rights. Strict confidentiality of all information exchanged is also required. Progress on improving transparency, informationsharing and compliance with tax laws accelerated in the lead-up and aftermath of the G20 summit in April 2009, which set the fight against tax havens as a priority.

All 30 OECD countries now meet the standard. Of the 40-plus tax havens that the OECD identified in 2000, nine-the Netherlands Antilles, Aruba, Bermuda, the British Virgin Islands, Cyprus, the Isle of Man, Guernsey, Jersey and Malta-are actively implementing the OECD standard either by means of Tax Information Exchange Agreements (TIEAs) or tax treaties, and the international community needs to recognise this progress. Macao and Singapore, as well as Hong Kong, China, have endorsed the standards and will take steps before the end of 2009 to start implementing them. Andorra, Liechtenstein and Monaco have also agreed to implement the standards. The Global Forum on Taxation, which is now the pre-eminent platform for international dialogue on this issue, will monitor commitments and push for compliance in more jurisdictions, as well as work to prevent the creation of new tax havens.

References

OECD (1998), Harmful Tax Competition: An Emerging Global Issue, Paris For more details, see also www.oecd.org/tax/evasion

Visit www.oecd.org/tax

Visit www.oecd.org/finance

©OECD Observer No 273 June 2009




Economic data

GDP growth: +0.6% Q3 2017 year-on-year
Consumer price inflation: 2.3% Dec 2017 annual
Trade: +4.3% exp, +4.3% imp, Q3 2017
Unemployment: 5.5% Dec 2017
Last update: 12 Feb 2018

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly


Online edition
Previous editions

Don't miss

  • Ambassador Aleksander Surdej, Permanent Representative of Poland to the OECD, was a guest on France 24’s English-language show “The Debate”, where he discussed French President Emmanuel Macron’s speech at the World Economic Forum in Davos.
  • The fight against tax evasion is gaining further momentum as Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama and Tunisia signed the BEPS Multilateral Convention on 24 January, bringing the total number of signatories to 78. The Convention strengthens existing tax treaties and reduces opportunities for tax avoidance by multinational enterprises.
  • Rousseau
  • Do you trust your government? The OECD’s How's life 2017 report finds that only 38% of people in OECD countries trust their government. How can we improve our old "Social contract?" Read more.
  • Papers show “past coming back to haunt us”: OECD Secretary-General Angel Gurria tells Sky News that the so-called "Paradise Papers" show a past coming back to haunt us, but one which is now being dismantled. Please watch the video.
  • When someone asks me to describe an ideal girl, in my head, she is a person who is physically and mentally independent, brave to speak her mind, treated with respect just like she treats others, and inspiring to herself and others. But I know that the reality is still so much different. By Alda, 18, on International Day of the Girl. Read more.
  • Globalisation’s many benefits have been unequally shared, and public policy has struggled to keep up with a rapidly-shifting world. The OECD is working alongside governments and international organisations to help improve and harness the gains while tackling the root causes of inequality, and ensuring a level playing field globally. Please watch.
  • Read some of the insightful remarks made at OECD Forum 2017, held on 6-7 June. OECD Forum kick-started events with a focus on inclusive growth, digitalisation, and trust, under the overall theme of Bridging Divides.
  • Checking out the job situation with the OECD scoreboard of labour market performances: do you want to know how your country compares with neighbours and competitors on income levels or employment?
  • Trade is an important point of focus in today’s international economy. This video presents facts and statistics from OECD’s most recent publications on this topic.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .
  • Visit the OECD Gender Data Portal. Selected indicators shedding light on gender inequalities in education, employment and entrepreneurship.

Most Popular Articles

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2018