Harmful tax practices

Committee on Fiscal Affairs releases outcome of review of preferential tax regimes in OECD countries


The OECD has released a report on the progress in eliminating harmful tax practices in OECD countries. The report follows on from the 2004 Progress Report and updates the assessment of the preferential tax regimes in OECD countries that were identified as potentially harmful in the 2000 report, "Towards Global Tax Co-operation".

Paolo Ciocca, Chair of the OECD’s Committee on Fiscal Affairs, welcomed the progress reported.  “OECD countries embarked on a difficult challenge when we commenced our work on countering harmful tax practices and this report reflects the success we have had in bringing about change.  In 2000, we identified 47 potentially harmful preferential tax regimes in OECD countries. Of those regimes, 19 regimes have been abolished, 14 have been amended to remove their potentially harmful features, 13 were found not to be harmful and only one has been found to be harmful.  This Report, along with the report recently issued by the OECD Global Forum on Taxation on the transparency and exchange of information practices in 82 economies, shows that we are making real progress in addressing harmful tax practices.  Further work is required to fully implement the standards we have set so that national tax laws in countries large and small can be fairly and effectively enforced. I look forward to more rapid progress in this area.” 

Since the publication of this report, the Luxembourg 1929 holding company regime has been abolished by legislation enacted on 29 December 2006, with transitional rules for certain existing beneficiaries up to 31 December 2010.

For further information, please contact Mr. Dónal Godfrey ([email protected]), Head of the Harmful Tax Practices Unit, OECD's Centre for Tax Policy and Administration .  


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