U.S. and Bahamas Conclude TIEA and OECD Removes Barbados from its List

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Friday, March 1, 2002
Bruce Zagaris
In January 2002, as the February 28, 2002 deadline for jurisdictions targeted as tax havens by the Organization of Economic Cooperation and Developments (OECD) approaches, the U.S. concluded its third recent tax information exchange agreement with a so called tax haven and confirmed negotiations with a fourth. The OECD voluntarily removed Barbados from the list. The Bahamas and the United States signed a tax information exchange agreement on 25 January that is very similar to the prior two TIEAs that the United States concluded. The United States concluded TIEAs with the Cayman Islands on November 27, 2001 and with Antigua and Barbuda on December 6, 2001. On January 31, 2002, the OECD announced in a joint press release with Barbados that Barbados will not appear on a list of suspected tax havens the OECD will issue after February 28, 2002. The reason offered is that Barbados is already practicing the transparency and information exchange activities called for in the ongoing campaign against uncooperative offshore financial centers, the statement said. Barbados was one of 35 jurisdictions listed by the OECD in mid-2000 as meeting its suspected tax havens criteria. The OECD threatened defensive measures, or sanctions, against all jurisdictions on the list that failed to pledge cooperation with the organization’s 30 member countries by a July 2001 deadline, since extended to February 28, 2002.