Over the last few years the OECD has persuaded 31 tax havens to scrap harmful tax practices and exchange information by December 2005. Those that have not complied have been placed on a blacklist and been threatened with sanctions and having favourable tax treaties scrapped.
Countries like the US and Britain believe an open exchange of bank information between nations is crucial to fighting money laundering and tax evasion.
But at the OECD’s September meeting Switzerland and Luxembourg blocked agreement on a common definition on tax fraud that could apply during an exchange of bank information between nations, the FT reported.
They also joined Austria and Belgium by objecting to a December 2005 deadline for access to information about the tax status of residents.
A meeting in Canada next week will address the issue, with one option being to scrap the current strategy and adopt the EU savings tax directive, which allows Austria, Belgium and Luxembourg to apply withholding taxes until at least 2010.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...