TAX HEAVEN

What is tax heaven?

• A tax haven is a state, country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance, and a low corruption rate.

• Related to international taxation.

Tax Haven Countries

Europe Eire Isle of Man Jersey Alderney Guernsey Monaco Gibraltar Madeira Andorra Luxembourg Liechtenstein Malta Cyprus

Africa Liberia Seychelles Mauritius

Bahamas & Carribean Bahamas Bermuda Turks & Caicos U.S. Virgin Islands British Virgin Islands Anguilla Antigua Nevis Montserrat Barbados Grenada Netherlands Antilles Aruba Panama Costa Rica Cayman Islands Belize

Pacific Rim Cook Islands Samoa Niue

What is OECD model?

Organisation economic Co-operation and Development

An organization that acts as a meeting ground for 30 countries which believe strongly in the free market system, The OECD provides a forum for discussing issues and reaching agreements, some of which are legally binding.

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OECD objectives

What does the OECD seek? improved transparency improved exchange of information a co-operative approach

What is not sought? harmonization or setting minimum tax rates impinging on national fiscal sovereignty an unfair competitive advantage for OECD financial

centers

Two linked initiatives: 1998 initiative on Harmful Tax Practices 2000 on improving access to bank information

OECD approach

Recognizes: Interest of government in protecting

integrity of tax system and confidentiality of taxpayer information

Interest of business community in avoiding excessive burden

Countries’ right to tailor their own tax systems to their own needs

The need to move towards a level playing field and mutual benefits