TaxCorporate TaxOECD pressure on tax havens pays off

OECD pressure on tax havens pays off

The Organisation for Economic Cooperation and Development (OECD) has claimed it is making headway in chasing so-called 'harmful' tax regimes from the world's statute books, declaring 18 have been scrapped since the year 2000 and another 14 have been reformed.

Link: Tax havens exploited by US businesses

Following further analysis, 13 of the 47 systems identified as harmful at the turn of the century had been found ‘not to be harmful’ by OECD officials, leaving just two in the frame. These are Switzerland’s so-called 50/50 practice (previously known as the administrative company regime), and Luxembourg’s 1929 holding company regime.

Both will be discussed at the OECD later this year and, although reforms have been tabled in Luxembourg, the international think-tank has concerns about the system’s transparency. The organisation considers tax laws that allow for low or zero taxation on geographically mobile services to be harmful, especially where there is a dearth of information about the taxpayers.

The body considers these systems to stymie open tax-competition between jurisdictions.

Bill McCloskey, OECD fiscal affairs committee chairman, said pressure from his organisation since 2000 has ‘resulted in real change’, adding: ‘OECD countries have shown that they will take action to ensure that tax competition is fair.’

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter