An alliance of small territories has been proposed to encourage a discussion with the OECD over financial centers, and bring it to the attention of the United Nations.
Monday, October 1, 2012
An article in Prensa.com examines the opinions of a variety of analysts at the second Step Latam Conference held in Panama, regarding pressure from the Organization for Economic Cooperation and Development (OECD) on countries to comply with their requirements on tax information exchange.
"Among the most militant advocates of this theory is the Panamanian lawyer Adolfo Linares. 'Panama should take a lead role in the Latin American region to promote coordination in the common defense of countries that are in the same situation as us.'"
One of the criticisms made of the so-called rich club of countries is that when those that are considered tax havens reach a certain level of compliance with the measures proposed, new requirements arise. 'Every time Panama reaches a goal, two more goals are set. In the end, what the OECD wants is to dismantle financial centers that are in competition with its own centers", said the former chairman of the Chamber of Commerce, Industries and Agriculture of Panama."
The organization has rejected Panama's attempt to implement automatic exchange of tax information using a different system to the standard used by the organization.
The General Secretariat of the Organisation for Economic Co-operation and Development (OECD) understood the proposal put forward by Panama to exchange tax information through bilateral agreements as moving away from its commitment to the model adopted by this organization, and has once again included the country in the gray list alongside Bahrain, Nauru and Vanuatu, which have so far not announced their adherence to that model.
Panama, Bahrain, the Cook Islands, Nauru and Vanuatu are the countries that have refused to join the OECD agreement for automatic exchange of tax information.
Laestrella.com.pa reports that "... According to data provided by the Global Forum on Transparency, linked to the Organization for Economic Cooperation and Development (OECD), these five states are the only ones who have been unwilling to adhere to the automatic exchange.
Panama's government is to reactivate the discussion on a bill to immobilize bearer shares, with extensive consultation with the sectors involved.
The bill has the support of most international bankers and lawyers. However in the view of attorney Adolfo Linares, the law assumes submitting to the demands of the Organization for Economic Cooperation and Development (OECD), an organization which is trying to limit the jurisdiction of Panama's financial center in order to promote the interests of its member countries.
After completing twelve agreements to exchange tax information with as many other countries, the OECD has announced that Costa Rica will be excluded from the gray list.
A press release from the Ministry of Finance reads:
COSTA RICA OUT OF THE LIST OF TAX HAVENS
• Bill Compliance Standard on Fiscal Transparency is essential for implementation of international agreements