OECD Delays Sanctions for One Year, But Plans to Issue Report On Schedule

On April 24, 2000, the Organization for Economic Co-Operation and Development (OECD) announced in applying its harmful tax competition initiative that it would defer for one year sanctions it planned to start in June, but will still issue the list of tax haven countries. In 1998, the OECD issued a report on harmful tax competition, which defines harmful jurisdiction by various criteria, such as those offering zero or low tax rates with insufficient legal and administrative transparency and exchange of information systems. It identified 47 jurisdictions outside its membership for investigation and announced it would publish a blacklist in June 2000 and impose sanctions against those that appeared and refused to take action to remedy their offending practices.