2. What is tax heaven?
âą 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.
âą Related to international taxation.
3. Tax Haven Countries
Europe Bahamas & Carribean
ï Eire ï Bahamas
ï Isle of Man ï Bermuda
ï Jersey ï Turks & Caicos
ï Alderney ï U.S. Virgin Islands
ï Guernsey ï British Virgin Islands
ï Monaco ï Anguilla
ï Gibraltar ï Antigua
ï Madeira ï Nevis
ï Andorra ï Montserrat
ï Luxembourg ï Barbados
ï Liechtenstein ï Grenada
ï Malta ï Netherlands Antilles
ï Cyprus ï Aruba
ï Panama
Africa ï Costa Rica
ï Liberia ï Cayman Islands
ï Seychelles ï Belize
ï Mauritius
Pacific Rim
ï Cook Islands
ï Samoa
ï Niue
4. What is OECD model?
ï Organisation economic Co-operation and
Development
ï 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.
5. OECD objectives
What does the OECD seek?
ïŒ improved transparency
ïŒ improved exchange of information
ïŒ a co-operative approach
What is not sought?
ïŒ harmonization or setting minimum tax rates
ïŒ impinging on national fiscal sovereignty
ïŒ an unfair competitive advantage for OECD financial centers
Two linked initiatives:
ïŒ 1998 initiative on Harmful Tax Practices
ïŒ 2000 on improving access to bank information
5
6. OECD approach
Recognizes:
ïŒ Interest of government in protecting integrity of
tax system and confidentiality of taxpayer
information
ïŒ Interest of business community in avoiding
excessive burden
ïŒ Countriesâ right to tailor their own tax systems to
their own needs
ïŒ The need to move towards a level playing field
and mutual benefits