15
June 2001
ITIO welcomes US restatement of concerns about OECD
tax project, still awaits OECD's promised clarifications
The
International Tax and Investment Organisation (ITIO)
has welcomed comments made on 13 June by John Taylor,
US Treasury Under-Secretary for International Affairs,
following a meeting of the OECD's Forum on Harmful
Tax Practices.
Mr
Taylor spelt out the US administration's continuing
opposition to telling countries how to run their tax
systems. This appears to confirm US unhappiness with
the key "non-discrimination" principle underpinning
the OECD's so-called "harmful tax competition
initiative".
(The
other two principles that underpin the OECD project
are effective exchange of information and transparency.
Mr Taylor spoke in favour of the former.)
Mr
Taylor also confirmed that the US administration was
looking for a "redirection" of the OECD's
plans for action against alleged tax havens.
OECD
sources have suggested that US concerns derive from
a misunderstanding by the administration of what is
meant by "tax harmonisation". Mr Taylor's
comments suggest that the misunderstanding is at least
as much the OECD's as the US's.
The
OECD's Fiscal Affairs Committee is expected to reveal
how US concerns are to be accommodated when it meets
on 26-27 June.
Lynette
Eastmond, Director of the ITIO Secretariat, commented:
"Mr
Taylor's comments suggest that the US position remains
basically unchanged from Treasury Secretary O'Neill's
statement on 10 May. We strongly support the US government's
continuing opposition to criminal tax evasion.
"We
also welcome the US's ongoing concerns about OECD
attempts to dictate other countries' tax systems.
It seems the OECD is now beginning to take US concerns
seriously.
"Confusion
between the US and OECD over what is meant by harmonisation
shows the importance of defining matters clearly.
Sadly, the OECD has still not given small countries
the fundamental clarifications about its initiative
which it promised three and a half months ago.
"For
example, why won't the OECD spell out how it sees
the difference between criminal and civil tax matters?"
"This
shows a lack of good faith and makes it harder for
small and developing economies to reach agreement
with the OECD."
For
further information, please contact Ben Coleman in
London on Tel: +44 (0) 20 7526 3603, or Tel: +44 (0)
7958 616 444, or Email: media@itio.org
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