Pacific Leaders Call For More Flexibility Over OECD Tax Initiative

by Mary Swire, Tax-News.com, Hong Kong

21 August 2002

The 33rd Pacific Islands Forum, held last week, was successful and productive, according to the report released by the Forum leaders at its conclusion.

The summit meeting was held in Fiji, and was attended, somewhat unusually, by heads of state from all 16 member nations: Australia, the Cook Islands, the Federated States of Micronesia, the Fiji Islands, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, the Republic of Marshall Islands, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu.

During the forum, the heads of state and government endorsed the report put together by the Forum Economic Ministers, and agreed that there was 'pressing need to address the internal economic weaknesses in island economies to better withstand international economic downturns and take advantage of global growth'.

They also agreed the need to focus on improving the business environment in the Pacific region, but noted that 'there were concerns regarding the process involved in the FATF listing of non-cooperative countries and territories'.

The Pacific leaders also 'called on the OECD to take a much more participatory and flexible approach to the Harmful Tax Initiative, noting the need for assistance to build the compliance capacity of the Pacific Islands States with regards to the OECD and Financial Action Task Force requirements'.

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