OECD Drops Barbados From Black-List

Tax-News.com, London

01 February 2002

In a joint press release, the OECD and Barbados announced that Barbados will not appear on the OECD's forthcoming list of uncooperative tax havens. The text of the release is as follows:

"Following detailed discussions since the release of the 2001 Progress Report, Barbados and the OECD are pleased to announce that, for the reasons specified below, Barbados will not appear on the forthcoming list of uncooperative tax havens. These discussions have shown that Barbados has transparent tax and regulatory systems and has in place a mechanism that enables it to engage in effective exchange of information.

"Barbados has long-standing information exchange arrangements with other countries, which are found by its treaty partners to operate in an effective manner. Barbados is also willing to enter into tax information exchange arrangements with those OECD Member countries with which it currently does not have such arrangements. Barbados has in place established procedures with respect to transparency. Moreover, recent legislative changes made by Barbados have enhanced the transparency of its tax and regulatory rules.

"Both Barbados and the OECD acknowledge the importance of dialogue in addressing international tax issues. Barbados has played an important role in fostering such dialogue. Both parties look forward to a continuing and constructive dialogue on issues of mutual interest."

Following the announcement, Andrew Quinlan, president of Washington lobbying group the Center for Freedom and Prosperity, said: "The OECD has suffered another setback. It now admits that Barbados has no reason to be on any blacklist. Last May, Treasury Secretary O'Neill pressured the OECD to moderate its strident tone and eliminate some of its more radical proposals, thereby rendering the OECD's 'harmful tax competition' project irrelevant.

"For the last eighteen months, the OECD has said that the only way to get off the 'blacklist' was to sign a Memorandum of Understanding (MOU) emasculating tax competition, financial privacy and fiscal sovereignty. In fact, however, Barbados did not sign a MOU. We hope this is a sign that the OECD is ceasing its attack on the domestic policies of sovereign nations. It is time to put the 'blacklist' in the 'black hole' of history."

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