Friday, March 27, 2009 11:50
Singapore among nations on tax havens “blacklist”? No such list, says OECD
In Darren Boon • 1,590 views • 5 Comments
Darren Boon / Head, Reporting Team
In response to a media enquiry from The Online Citizen, the Organisation for Economic Cooperation and Development (OECD) has dispelled talk of a blacklist of non-cooperative tax centres. There had been speculation that Singapore was among one of the countries on the list.
Mr Nicolas Bray, Head of Media and Public Affairs & Communications of the OECD, told The Online Citizen: “There is no new ‘OECD list’ of tax havens and we are not quoting any specific number of tax havens.”
In the OECD’s “2007 Offshore Tax Evasion: The Role of Exchange of Information” report, it warned of the directing of tax evasion from one country to that of an offshore centre such as Singapore.
The report had stated that Singapore has “used the fact that it is not on the OECD list of tax havens and has restrictive exchange of information provisions in its tax treaties to market itself as the ultimate secrecy jurisdiction”.
It cautioned that such secrecy jurisdictions may facilitate tax evasion by other countries’ residents.
A list of uncooperative tax havens does exist although it dates back to 2005. There are currently three countries on the list – Andorra, Liechtenstein and Monaco.
Mr Bray clarified that the list media reports had referred to was actually an information table that provides information on jurisdictions that currently do not conform to the internationally agreed standards of transparency and information.
Mr Bray also stated that other jurisdictions are also on the table in addition to Andorra, Liechtenstein and Monaco although he added that while some jurisdictions have signalled their intention to change, some had not made any formal announcement.
He did not, however, dispel the future possibility of a “blacklist”. “The information that was provided by the OECD to the G-20 and the various announcements that have been made will be taken into account,” Mr Bray explained. He was referring to countries and jurisdictions that currently do not make available banking information for tax purposes. This contravenes international standards established between the OECD and other countries, and approved by G-20 finance ministers and a relevant UN committee. “The G-20 governments will decide what they wish to do regarding any possible lists,” Mr Bray said.
“The information that I refer to is a snapshot of the present – where intentions have not yet been transformed into reality,” My Bray added.
The G-20, made up of a group of major industrialised countries, will examine a proposal to blacklist certain countries at a summit meeting in London on April 2.
Meanwhile, the OECD has welcomed Singapore’s moves to endorse the OECD’s standard of exchange of information by dismantling domestic hurdles to information exchange.
The Online Citizen is currently awaiting a response from the Ministry of Finance on this matter.
——–
Related posts:
5 Comments
Retiree
So what
We have also been on human rights abuse, highest execution per capital, persecution of political activists list, etc,etc.
But so what? Everything is based on economic considerations first between and within nations. Who cares about moral or social aspects, except lip service only.
death upon mankind
do i have to believe this?
Rurehe
Why do the Burmese generals come to Singapore for?
Put their money in the banks here because of its bank secrecy law?
When they tell secrets to a Singapore banker it is as if they are talking to God Almighty in Heaven and both sides will keep their secrets.
So, the money is safe.
Donaldson Tan
Retiree #1
The fire you are talking about is French President Nicholas Sarkozi’s suggestion to impose some form of economic sanction on tax havens that don’t comply to the OECD Standard. It is still a blacklist with or without the sanctions. OECD countries have been pushing for tougher measures against tax measures but this time they are all in it collectively, thanks to the financial crisis. The international financial crisis have spurred these countries to exhaust their treasuries to bail out domestic companies “deemed too big to fail”. However, these firms continue to engage in tax avoidance activities with the public funds received.
No smoke without fire so the primary school saying goes……
Nobody can know the real situation now, and yet just like the lyrics of Leonard Cohen “every body knows” , – the catchy tune that get one humming once heard.
Note that George Yeo is in London.
This may be part of a flurry of lobbying activities…….Pre-emptive meaures must be in the forefront before there is any response from MOF, so be patient.
Blacklisting is meaningless when the Europeans are the initial main culprits and the Americans are the many benefiaries………