Tonga off OECD blacklist
The OECD has said Tonga no longer meets the criteria of a tax haven set out in its report 'Harmful tax competition: An emerging global issue'.
The decision means Tonga will not appear on any list of uncooperative jurisdictions.
A blacklist of tax havens was originally due to be published last month. Countries appearing on the list were threatened with economic sanctions and having favourable tax treaties scrapped if they did not co-operate to eliminate so-called harmful tax practices.
But with the election of US president George Bush the organisation’s tax policy has been forced to change. The US Treasury expressed doubts over the programme, suggesting it could hurt North American business interests.
As a result, the list has now slipped down the agenda with no firm date set for publication.