One important point, observed Mr Sears, was the fact that the OECD (Organisation for Economic Cooperation and Development) appears to be making good on its promise not to impose sanctions on non-members that are not imposed on OECD member states. The Attorney General revealed that he was still critical, however, of the organisation's record on its commitment to the level playing field principle, which he observed: "remains the major challenge of the OECD's harmful tax project."

This situation could be further complicated by developments in the European Union, Mr. Sears suggested: "The EU has agreed not to require exchange of information in relations to savings instruments from the United States, Switzerland, Liechtenstein, Monaco, Andorra and San Marino," he said, continuing: "It has further agreed not to require its members Belgium, Luxembourg and Austria to implement such exchanges."

According to Sears, reports have suggested that the EU will not recognise any of its 15 members (who are also OECD members) as having "harmful tax regimes." If this turns out to be the case, it could have serious repercussions for the OECD initiative, the Attorney General predicted.