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Pacific Islands To Discuss OECD Pressure At Forum Meeting
by Mary Swire, Tax-News.com, Hong Kong

16 August 2001

The Pacific Island tax havens will be airing their concerns regarding the demands of the OECD at the forthcoming Pacific Islands Forum meeting in Nauru, it was revealed recently. This follows a meeting in Auckland at the end of last month when the Deputy Premier of Niue, Young Vivian complained that the Organisation for Economic Cooperation and Development had not treated the Pacific islands fairly, because questions submitted regarding the harmful tax practices initiative had not been answered.

Leader of the Cook Islands delegation, Prime Minister Dr. Terepai Maote, told OECD officials at the last meeting that the jurisdictions wanted to work as a group, and would consult each other before considering any undertaking with the organisation. This week's meeting is seen as the first step in this process, and the affected jurisdictions are eager to seek advice from other political leaders, including New Zealand Prime Minister Helen Clark, who will be attending the forum.

The Cook Islands and Niue are currently included on the OECD blacklist for what the multilateral organisation has called 'harmful tax haven practices', while Nauru is included for alleged money laundering practices. However, Nauru has promised to introduce anti-money laundering legislation in an attempt to placate the OECD, and Niue, assisted by New Zealand, has established a financial monitoring unit. Dr Maote, speaking for the Cook Islands, has said that he would like to discuss the establishment of an offshore financial services unit for the region at the meeting.

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