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.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states