By Courtesy of CNSBusiness
Tax havens will no longer exist in five years as a result of new rules aimed at combating tax abuse, the OECD has said. In the wake of the agreement signed last week by over 50 countries, including the Cayman Islands, Grace Perez-Navarro, from the Organisation for Economic Co-operation and Development (OECD), said that banking secrecy offered by tax havens would be destroyed as a result of the “unprecedented” co-operation. Financial information held on tax evaders hiding money in signatory countries will now be shared automatically.
“Will countries like the Cayman Islands be able to maintain an economy like they currently have? If it’s based on financial quality that’s OK, but if it’s based on secrecy, they won’t be able to continue,” Perez-Navarro told the international press.
UK Chancellor George Osborne said, “We expect this will provide tax authorities across the world with the details of billions of pounds of assets held overseas.”
Ironically, questions have been asked about whether the UK is ready for the agreement it also signed Wednesday (Nov. 5th.), since it does not have all of the necessary systems in place. However, the OCED representative said she believed Britain would need to find a way.
“It may be true that the system isn’t there yet. The cost will be high but there is political commitment at the highest levels of government. There is no turning back,” Perez-Navarro noted.
