G20/World economic crisis

OECD compiles blacklists of tax havens

Article published on the 2009-04-03 Latest update 2009-04-03 14:58 TU

Hu Jintao meets Nicolas Sarkozy ahead of the G20 summit in London.
(Photo: Reuters)

The Organisation for Economic Cooperation and Development (OECD) has published a blacklist of uncooperative tax havens. The list follows demands from world leaders at the G20 summit in London for a crackdown on tax evasion. A further list names 38 countries who have agreed to new measures.

There are four names on the first list – Malaysia, the Philippines, Costa Rica and Uruguay. These are the countries that have not agreed to tax standards. The Philippines is said to be taking steps towards removing itself from the list.

A further 38 countries have said they will accept the measures, but have not done so yet. The OECD list will be used as a basis for any further action taken.

Countries that do not comply with agreed standards will eventually have sanctions imposed on them in line with terms agreed at G20. But exact details over the sanctions were not agreed at the summit.

French President Nicolas Sarkozy says that talks over the issue of tax havens were tense, but was keen to underline his role in persuading the Chinese leader Hu Jintao to agree to the list’s publication.

China is not a member of the OECD. Sarkozy denied that he closed a deal with Hu over the tax haven issue by saying he would not receive the Dalai Lama. The two met overnight on the sidelines of the London G20 summit after a row over Sarkozy meeting the Buddhist leader last year.