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UK warned on corruptionAn OECD anti-corruption body has sharply criticised the UK’s failure to bring its anti-bribery laws into line with its international obligations. The OECD’s Working Group on Bribery, chaired by Mark Pieth (see photo), has now urged the rapid introduction of new legislation to correct this at the earliest possible date, so reiterating previous recommendations from 2003, 2005 and 2007. Current UK legislation makes it very difficult for prosecutors to bring an effective case against a company for alleged bribery offenses, the group has found.Although the UK ratified the OECD Anti-Bribery Convention 10 years ago–the convention makes bribery of foreign officials a criminal offence in all OECD countries–it has so far failed to successfully prosecute any bribery case against a company. The OECD group, which brings together all 37 countries that are parties to the OECD Anti-Bribery Convention, is “disappointed and seriously concerned” about the UK’s continued failure to address deficiencies in its laws on bribery of foreign public officials and on corporate liability for foreign bribery, which it said has hindered investigations.The group acknowledged positive aspects in the UK’s fight against foreign bribery, including resourcing up a specialised unit of the police for foreign bribery investigations. But recent cases have highlighted the need to safeguard the independence of the Serious Fraud Office and eliminate unnecessary obstacles to prosecution. Further reforms should be dealt with as a matter of political priority, the group says, including the need for effective corporate liability for bribery and removing considerations of national economic interest from all investigative and prosecutorial decisions.For more detail on the UK “phase 2bis” report on the application of the OECD Anti-Bribery Convention, please visit www.oecd.org/daf/nocorruptionGender gap persistsWomen are 20% less likely than men to have a paid job and they earn on average 17% less, according to the latest edition of OECD Employment Outlook. At least 30% of the gap in wages and 8% of the gap in employment rates in OECD countries result from discriminatory practices in the labour market. Virtually all OECD countries have anti-discrimination laws in place, but governments still need to do more to ensure a level playing field.The report highlights policies to help fight discrimination, and makes recommendations, such as in education and training, reforms to incite managers to drop discriminatory practices, and enforcement of existing legislation. The report also examines youth labour markets, informal employment, mental health at work and multinational pay (see article, page 15).Visit www.oecd.org/employmentTax progress mixedThe Isle of Man and the UK have signed a bilateral agreement for the exchange of information for tax purposes. The new agreement announced end-September 2008 was hailed as a further step in bringing greater transparency and fairness to crossborder financial transactions. Since the start of 2007, jurisdictions committed to the OECD principles of transparency and exchange of information have signed a total of 17 bilateral agreements with OECD countries.In July, Germany and Jersey signed the 16th bilateral arrangement. A total of 35 jurisdictions have now committed to work with OECD countries to improve transparency and establish effective information exchange for tax purposes. However, a report issued on 29 September said that despite some advances, progress on exchange of information on tax issues was more limited. “Significant restrictions” on access to bank information for tax purposes remain in three OECD countries–Austria, Luxembourg and Switzerland–and in a number of offshore financial centres, including Liechtenstein, Panama and Singapore. Further, a number of such centres had failed to follow through on commitments.Tax Co-operation: Towards a Level Playing Field–2008 Assessment by the Global Forum on Taxation is available at www.oecd.org/ctp/htpEconomyThe latest composite leading indicators (CLI) continued to point to slower economic activity ahead in the OECD area, by falling 0.7 points in July 2008 to stand 5.2 points lower than a year earlier. The CLI, which reflects the likes of order books, building permits, sentiment surveys and longterm interest rates, indicates a weakening outlook in all the G7 OECD economies. It pointed to expansion in China, Brazil and Russia, but a more sluggish India.Annual inflation in the OECD area at 4.7% in August 2008, easing from 4.8% in the year to July. On a monthly basis, the price level decreased by 0.1% in August, compared with 0.4% in July. Energy consumer prices increased by 20.9% year-on-year in August, up from a rise of 7.2% in July.Despite a modest recovery of quarterly trade volume growth in the first quarter 2008 (2.5% for exports and 0.4% for imports), year-on-year import volume for the G7 countries continued to slow to only 1%, the lowest rate since the first quarter 2006. Exports were up 5.6% compared with the same period in 2007. US quarter-on-quarter export growth fell 0.2% and imports were down 0.9%.

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