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18/04/2002 - The OECD has released a model agreement for effective exchange of information in tax matters, developed by the OECD's Global Forum Working Group on Effective Exchange of Information which included representatives from several OECD countries and Aruba, Bermuda, Bahrain, Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius, the Netherlands Antilles, the Seychelles and San Marino.
This Agreement contains two models for bilateral agreements drawn up in the light of the commitments undertaken by the OECD and the committed jurisdictions. The Working Group was chaired by Malta and the Netherlands and marks the first results of the OECD's collaboration with the jurisdictions that have committed to improve transparency and establish effective exchange of information in tax matters.
Dutch junior Finance Minister, Wouter Bos, regards the model agreement as an important step. "The Netherlands has always been of the opinion that transparency and exchange of information are the key-elements in neutralising harmful tax practices and both should therefore be high on the international tax agenda. In that light, I am very pleased with the release of the model agreement. The fact that eleven non-member financial centres have had the courage to actively contribute to this achievement is very encouraging. I would like to express my gratitude to all of them, but in particular to Malta, which as co-chair has been instrumental in reaching success. I expect this agreement to become the international standard for exchange of information in tax matters."
Maltese Minister, John Dalli, adds: "Indeed it is crucial that the agreement will become the international standard. The exchange agreement recognises in its introduction that 'it is important that financial centres throughout the world meet the standards of tax information exchange set out in this document.' It encourages as many economies as possible to co-operate in this important endeavour and notes that it is not in the interest of participating economies that 'the implementation of the standard contained in this agreement should lead to the migration of business to economies that do not co-operate in the exchange of information.' The OECD members and committed jurisdictions will engage in an ongoing dialogue to work towards the achievement of that aim."
The model grew out of the work undertaken by the OECD to address harmful tax practices that distort competition in the global market for mobile financial services. One of the key criteria in identifying harmful tax practices is the lack of effective exchange of information. The model can be used as a basis for entering into agreements to exchange information.
Donald J. Johnston, Secretary General of the OECD, welcomed the release of the model and in particular the constructive participation by the non-member financial centres in this endeavour: "I have always said that it is important for the OECD to establish new ways of carrying out its work and to look beyond its own membership for input. For these reasons, the OECD established a number of Global Forums in 2000 that would provide a framework for our discussions with Non-OECD economies in certain key areas."
"I am very pleased to see that this framework has not only proved to be successful as a vehicle for dialogue but has also been able to produce concrete results that members and non-members alike can use to improve co-operation in tax matters," Mr. Johnston added. "I congratulate all of the participants in this work for the excellent work product that they have produced and in particular the participants from Aruba, Bermuda, Bahrain, Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius, the Netherlands Antilles, the Seychelles and San Marino. I am confident that our collaboration on other related issues will be equally successful as we move forward in our work with all of the jurisdictions that have committed to improve the transparency of their tax and regulatory systems and establish effective exchange of information."
For further information, journalists are invited to contact the OECD's Media Relations Division(tel. [33] 45 24 97 00).
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