Criterion Of Tax Havens Jurisdictions

OECD 1998 Report suggested that the starting point for identifying a tax haven should be as simple as asking “whether the jurisdiction has no or nominal taxation on financial or other service income and offers or is perceived to offer itself as a place where non-residents can escape tax in their country of residence.” The report also referred to some other key factors which are used to confirm the existence of a tax haven (hereinafter referred to as the “tax haven criteria”). Those factors focused on transparency, exchange of information, and local business activities of foreign enterprises. However, the OECD Committee has accepted that changes are required for meeting the criteria of tax haven jurisdictions, since to commit to remove harmful tax practices may adversely affect the economies of some of those jurisdictions. Thus, the OECD will work with other interested international and national organizations to determine in finding the best way to help co-operative jurisdictions in restructuring those economies.

The following questions have been addressed in this article:

which jurisdictions were found to meet the tax haven criteria of the 1998 Report?
Has there been any work done by OECD with regard to the tax haven?


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