ITIO CALLS ON OECD TO DEMONSTRATE GOOD FAITH

Euromoney Institutional Investor / International Tax Review

The International Tax and Investment Organisation (ITIO) has warned the OECD to involve small countries properly in discussions or face the effective collapse of its "harmful tax competition initiative".

With the OECD's Fiscal Affairs Committee due to spell out the future of the OECD's tax project at the end of June, the ITIO is insisting that the OECD involve small and developing economies (SDEs) fully in the process of setting any new international standards.

Specifically, the ITIO is urging opening up the OECD-sponsored Global Tax Forum to all countries committed to the OECD's three broad principles of transparency, non-discrimination and exchange of information.

At the moment, the Forum is open to all non-OECD countries that accept these broad principles except for the SDEs being examined by the OECD as potential tax havens. These are also required to jump the extra hurdle of entering into detailed and open-ended agreements with the OECD before being allowed to participate in the Forum.

ITIO spokesperson Ben Coleman says: "it is manifestly unfair to exclude the countries most affected by the OECD project. It is also thoroughly silly to exclude countries that have more hands-on experience of offshore issues than most OECD members.

"If the OECD still aims to arrive at workable agreements, they will first need to start involving small and developing economies equally and fully in discussions, on the basis of true partnership.

"Inviting them to become members of the Global Tax Forum on the same basis as all other countries would demonstrate good faith and be a helpful first step. Without this inclusive approach, it is difficult to see a way forward for the OECD's tax project."


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