Offshore World 'Must Work In Harmony' On OECD Tax Initiatives

by Amanda Banks, Tax-News.com, London

07 May 2004

The Governor of the Central Bank of the Bahamas, Julian Francis, has urged small states to cooperate more closely with one another to ensure that their presence is felt by the OECD and onshore jurisdictions when new tax initiatives are being discussed.

"The OECD have sought to isolate small states by accusing them of engaging in harmful tax practices, notwithstanding the fact that countries like The Bahamas do not engage in the direct taxation of the income of its citizens or residents," Mr Francis told an audience of finance industry professionals at the recent annual Society of Trust and Estate Practitioners Caribbean Conference.

By working more closely, small states would be better positioned to present a unified strategy and oppose those initiatives which may be harmful to the interests of many less powerful nations, Mr Francis pointed out.

He also suggested that the offshore world should establish bodies of intellectual opinion and formulate its own initiatives to challenge the prevailing opinions of the onshore nations.

"Although we may be competitors, our survival and consequently our viability, depend to a great degree on our success in developing this level of cooperation," argued the Central Bank governor.

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