On 26 June, it is issuing a list of 47 preferential tax regimes which are potentially harmful in the OECD area. It is also issuing a list of 35 jurisdictions which meet the criteria of being a tax haven. We asked Jeffrey Owens, Head of Fiscal Affairs at OECD, to explain. OECD is not against all tax competition. Our member countries are prepared to engage in fair competition for financial service activities which are transparent and open.
Tax competition can have positive effects.
For example, the implementation in one country of a long needed tax reform may encourage other countries to undertake similar tax reforms in order not to lose their relative international competitiveness. By discouraging these practices, the Report will serve to strengthen and to improve tax policies internationally. These efforts will improve overall economic well-being for all taxpayers. The problem is big and getting bigger. It is hard to estimate with any degree of accuracy because we are speaking of unreported income.