Consultations in Barbados on OECD Harmful Tax Competition Initiative Yield Progress

On January 8-9, 2001, the high level consultations on the OECD’s harmful tax competition (HTC) initiative resulted in progress for all sides. The targeted countries and the Commonwealth Secretariat achieved the withdrawal of the OECD Framework for Collective Memorandum of Understanding (OECD Collective MOU) and other promises from the OECD, such as a more open and inclusive process. The OECD achieved an agreement to proceed with the initiative on the basic principles that have formed the essence of the HTC initiative. The OECD has surrendered time and a revised process in exchange for a process that will guarantee better implementation and enforcement. The meeting also produced many interesting papers and discussions on the making and implementation of international tax policy, and the respective roles of national governments and international organizations in legislating, implementing, and enforcing policies…[more]