OECD Issues Progress Report on Harmful Tax Practices With New Deadlines

On November 14, 2001, the Organization for Economic Cooperation and Development (OECD) issued a 2001 Progress Report, extending form November 30, 2001 until February 28, 2002 the deadline for tax havens to commit to efforts to terminate so-called harmful tax practices. According to Gabriel Makhlouf, chairmen of the OECD?s Committee on Fiscal Addairs, the deadline was postponed because work was delayed by Spain?s veto of the report. To help committed jurisdictions have enough time to develop implementation plans, the OECD extended the time for making such plans from six months after the date of making a commitment to twelve months after that date. Each committed jurisdiction has agreed to develop together with the OECD?s Global Forum ?an implementation plan? describing the manner in which it intends to achieve its commitment to eliminate harmful tax practices by December 31, 2005.