This document defines a tax haven as a country that levies low or no taxes while maintaining good governance. It lists various countries and territories considered tax havens in Europe, the Caribbean, Africa, and the Pacific Rim. It then discusses the OECD (Organisation for Economic Co-operation and Development) model, which seeks improved transparency and exchange of information between countries through cooperation rather than tax rate harmonization or impinging on national sovereignty. The OECD has initiated approaches to address harmful tax practices and improve access to bank information.

1. TAX HEAVEN

2. What is tax heaven?
• A tax haven is a state, country or territory
where certain taxes are levied at a low rate or
not at all while offering due process, good
governance, and a low corruption rate.
• Related to international taxation.

3. Tax Haven Countries
Europe Bahamas & Carribean
 Eire  Bahamas
 Isle of Man  Bermuda
 Jersey  Turks & Caicos
 Alderney  U.S. Virgin Islands
 Guernsey  British Virgin Islands
 Monaco  Anguilla
 Gibraltar  Antigua
 Madeira  Nevis
 Andorra  Montserrat
 Luxembourg  Barbados
 Liechtenstein  Grenada
 Malta  Netherlands Antilles
 Cyprus  Aruba
 Panama
Africa  Costa Rica
 Liberia  Cayman Islands
 Seychelles  Belize
 Mauritius
Pacific Rim
 Cook Islands
 Samoa
 Niue

4. What is OECD model?
 Organisation economic Co-operation and
Development
 An organization that acts as a meeting
ground for 30 countries which believe
strongly in the free market system, The OECD
provides a forum for discussing issues and
reaching agreements, some of which are
legally binding.

5. OECD objectives
What does the OECD seek?
 improved transparency
 improved exchange of information
 a co-operative approach
What is not sought?
 harmonization or setting minimum tax rates
 impinging on national fiscal sovereignty
 an unfair competitive advantage for OECD financial centers
Two linked initiatives:
 1998 initiative on Harmful Tax Practices
 2000 on improving access to bank information
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6. OECD approach
Recognizes:
 Interest of government in protecting integrity of
tax system and confidentiality of taxpayer
information
 Interest of business community in avoiding
excessive burden
 Countries’ right to tailor their own tax systems to
their own needs
 The need to move towards a level playing field
and mutual benefits