STEP Expresses Concern Over 'Blacklists' Of Non-OECD Countries

by Glen Shapiro, LawAndTax-News.com, New York

21 October 2003

Following the conclusion of last week's OECD meeting in Ottawa, the Society of Trust and Estate Practitioners (STEP) welcomed the Organisation's decision to continue with dialogue on the creation of a level playing field over tax between OECD members and non-members, but expressed concern at the increasing number of 'blacklists' being created and used against offshore centres.

In a closing statement released last Wednesday by the co-chairs of the Organisation for Economic Cooperation and Development's Ottawa meeting, deputy Prime Minister and Finance Minister of the Cook Islands, Dr Terepai Maote, and chair of the organisation's Committee on Fiscal Affairs, Gabriel Makhlouf, the two men revealed that:

"Participants acknowledged that progress had been made but recognised that a global level playing field does not yet exist and that further progress could and should be made to achieve it, so that all countries can reach the high standards which the participants wish to see achieved. In particular, they agreed that ways should be explored to involve significant financial centres that are not currently participating in the Global Forum process."

Responding to this, co-chairman of STEP's International Committee, Richard Hay announced that:

"We are pleased that OECD and non-OECD finance centres will now work together to secure a level playing field for regulation of financial services. The OECD is to be commended for recognising the crucial importance of a level playing field amongst all financial centres. OECD must now consider eliminating tax blacklists and work to secure open access to markets by all finance centres."

In a recently released statement, the Society expressed concern that discriminatory tax 'blacklists' are being drawn up by more and more OECD member states, despite the fact that 'offshore' centres and practices within the Organisation for Economic Cooperation and Development escape censure.

"For example, a new law introduced by the Portuguese government discriminates against traditional offshore companies but explicitly gives exemptions to those in booming OECD "offshore" centres like Delaware," STEP observed.

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