Jersey And Guernsey Welcome OECD Policy Changes

by Amanda Banks, Tax-News.com, London

07 September 2001

In a recently issued joint memorandum detailing the state of play with regard to the OECD blacklist, the Guernsey Advisory and Finance Committee and the Jersey Policy and Resources Department said that they welcomed the 'significant change in approach' taken by the multilateral organisation, and called described the specific policy changes as 'heartening'.

The report, which was issued to the business communities of the two jurisdictions earlier this week, detailed the changes expected in OECD policy as a result of the recent shift in US policy. These include the later publication of the second blacklist, the removal of ring-fencing from the list of criteria which may earn a jurisdiction a listing, and the delay of the implementation of 'defensive measures' against countries deemed as uncooperative until April 2003 at the earliest.

However, the Channel Islands bodies expressed concern at the delay in the publication of the 2001 Progress Report intended to fully explain modifications agreed in June. 'We understand that publication of the report may have been blocked by Spain because of certain difficulties concerning its relations with the United Kingdom over Gibraltar and there is no apparent evidence of any early resolution of the matter,' said the report. 'This is problematic because it means that uncertainty continues.'

It is no secret that the two Channel Island jurisdictions viewed the OECD's behaviour as less than even-handed in the past, but the memorandum concluded with the hope the past difficulties could be overcome. 'Much of what the OECD is now seeking by way of commitment on exchange of information and transparency is, in principle, not problematic for either island' it added. 'We believe that the outcome of this will be satisfactory.'

Recommended