Vanuatu Stands Up To OECD

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

27 February 2002

According to a report in the Vanuatu Trading Post earlier this week, the tiny pacific offshore jurisdiction will not be surrendering to the demands of the Organisation for Economic Cooperation and Development (OECD) for tax reform and legislative change.

This stance is markedly different from that assumed by some other 'blacklisted' countries, such as Nauru, and Antigua and Barbuda, which have announced that they will be cooperating with the multilateral organisation following the February 28th deadline for commitment to the process of reforming 'harmful tax regimes'.

However, according to the local independent newspaper, Finance Minister Joe Carlo was unrepentant, describing the OECD's pressure on the smaller offshore jurisdictions as 'blackmail', and arguing that it reflects the 'neo-colonial' attitudes of countries such as Britain, Germany, and France.

He added that the offshore finance sector in Vanuatu, and the territory's low tax status, brings in around four million dollars per year in Government revenue, and provides much needed employment in the jurisdiction.

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