1. TAX HEAVEN

2. What is tax heaven?
• A tax haven is a state, country or territory
where certain taxes are levied at a low rate or
not at all while offering due process, good
governance, and a low corruption rate.
• Related to international taxation.

3. Tax Haven Countries
Europe Bahamas & Carribean
 Eire  Bahamas
 Isle of Man  Bermuda
 Jersey  Turks & Caicos
 Alderney  U.S. Virgin Islands
 Guernsey  British Virgin Islands
 Monaco  Anguilla
 Gibraltar  Antigua
 Madeira  Nevis
 Andorra  Montserrat
 Luxembourg  Barbados
 Liechtenstein  Grenada
 Malta  Netherlands Antilles
 Cyprus  Aruba
 Panama
Africa  Costa Rica
 Liberia  Cayman Islands
 Seychelles  Belize
 Mauritius
Pacific Rim
 Cook Islands
 Samoa
 Niue

4. What is OECD model?
 Organisation economic Co-operation and
Development
 An organization that acts as a meeting
ground for 30 countries which believe
strongly in the free market system, The OECD
provides a forum for discussing issues and
reaching agreements, some of which are
legally binding.

5. OECD objectives
What does the OECD seek?
 improved transparency
 improved exchange of information
 a co-operative approach
What is not sought?
 harmonization or setting minimum tax rates
 impinging on national fiscal sovereignty
 an unfair competitive advantage for OECD financial centers
Two linked initiatives:
 1998 initiative on Harmful Tax Practices
 2000 on improving access to bank information
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6. OECD approach
Recognizes:
 Interest of government in protecting integrity of
tax system and confidentiality of taxpayer
information
 Interest of business community in avoiding
excessive burden
 Countries’ right to tailor their own tax systems to
their own needs
 The need to move towards a level playing field
and mutual benefits