Wednesday June 24 06:39 pm
OECD Countries Agree on Sanctions for Tax Havens
Ministers from the Organization of Economic Co-operation and Development have agreed on the possibility of imposing sanctions on countries that do not stick to the OECD's tax standards. Theyre cracking down on tax evasion. German Finance Minister Peer Steinbrueck says that he is "extremely happy" that a communiqué could be agreed by the 18 countries, including Switzerland, Austria and Luxembourg. [Peer Steinbrueck, German Finance Minister]: "Let me say that we have made substantial progress in our negotiations with Austria, Luxembourg and Switzerland. These countries have now agreed to respect OECD standards, which was not the case at the outset. We are now waiting to see if this leads to double taxation and beyond the mere announcement." French Budget Minister Eric Woerth told a news conference after the meeting, which was jointly hosted by Germany and France that "the issue here is fraud, tax evasion." [Eric Woerth, French Budget Minister]: "It's not about fiscal competition between our countries. In the communiqué, the 18 countries say they will promote best practices to protect their tax base against countries that are not implementing the OECD taxation standards. The OECD also decided that measures should be applied to prevent undue delays in the implementation.