US Official Reiterates Opposition To OECD Tax Initiative

by Mike Godfrey, Tax-News.com, New York

01 November 2001

A little-noticed speech by US Treasury International Tax Counsel Barbara Angus to the District of Columbia Bar Association in mid-October seems to confirm that the Treasury is sticking to its pro-tax competition position, clearly enunciated by Secretary Paul O'Neill before the September 11th attacks, but thrown into doubt afterwards by the push towards greater disclosure and transparency in the hunt for terrorists and their assets.

Most importantly, Ms. Angus reiterated the US position in favor of tax competition. She stated: "We believe that it is not proper for us to support any country or group of countries to interfere with the internal tax policy decisions of other countries."

'This is an important restatement of the US position', says Washington lobbying group the Centre for Freedom and Prosperity. 'Some supporters of the OECD had claimed that the US position somehow would be affected by the terrorist attacks. Fortunately, the Bush Administration understands that criminal behavior has nothing to do with tax policy.' Last week the Centre led the fight to remove language associating low-tax jurisdictions with money-laundering from crucial legislation passed in the wake of the attacks.

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