OECD: Further progress on harmful tax practices
The OECD Forum on Harmful Tax Practices agreed to new conclusions on 13 regimes.
The OECD Forum on Harmful Tax Practices agreed to new conclusions on 13 regimes.
The Organisation for Economic Cooperation and Development (OECD) issued a release describing further progress on the implementation of the international standard on harmful tax practices.
According to the OECD release, the OECD Forum on Harmful Tax Practices agreed to new conclusions [PDF 240 KB] on 13 regimes as part of the implementation of the BEPS Action 5 minimum standard on harmful tax practices.
- Two regimes were found to be not harmful (Cabo Verde and Hong Kong (China)).
- Four regimes are now in the process of being amended (Armenia) and two regimes have been amended to be in line with the standard and are now not harmful (amended) (Jamaica and North Macedonia).
- Two regimes are abolished (Honduras and Pakistan).
- Two regimes were concluded as potentially harmful (Albania).
In addition, the release states that as part of the standard on substantial activities requirements in no or only nominal tax jurisdictions, the Forum undertakes an annual monitoring exercise to assess whether the standard operates effectively in practice. The Forum started this exercise in 2021 and now reveals the conclusions for the second monitoring year [PDF 240 KB].
- Recommendations for substantial improvement were made for four jurisdictions (Anguilla, the Bahamas, Barbados and the Turks and Caicos Islands).
- Areas for focused monitoring were identified for another four jurisdictions (Bahrain, Bermuda, the British Virgin Islands and the Cayman Islands).
- No issues were identified for Guernsey, Jersey, the Isle of Man, and the United Arab Emirates.
The next annual monitoring will take place in the second half of 2023.
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