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In a progress report on jurisdictions surveyed by the OECD Global Forum in implementing the internationally agreed tax standard (1) (OECD International Tax Standard) as at 10 February 2010, Samoa has now been included on the OECD ‘white list’. The Cook Islands, although still listed on the OECD ‘grey list’, is also very close to moving onto the OECD ‘white list’ and therefore losing its ‘tax haven’ tag (as branded by the OECD). The Cook Islands has entered into 11 tax information exchange agreements (TIEAs).
How does a country meet the OECD International Tax Standard
The OECD have suggested that there is no ‘hard and fast’ rule as to whether the OECD International Tax Standard has been implemented, however, a good indicator of progress is whether a jurisdiction has signed at least 12 TIEAs that meet the OECD International Tax Standard. Such TIEAs must then be given effect through the enactment of enabling legislation.(2) The Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) was given a three year mandate at its Mexico meeting in September 2009 to peer review all 91 members of the Global Forum to check compliance with the OECD International Tax Standard. (3)
TIEAs entered into by Samoa and the Cook Islands
The below list(4) shows the TIEAs which Samoa and the Cook Islands have entered into:
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Cook Islands
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Samoa
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Demark - 16 December 2009
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Australia - 16 December 2009
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Faroes Islands - 16 December 2009
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Denmark - 16 December 2009
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Finland - 16 December 2009)
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Faroes Islands - 16 December 2009
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Greenland - 16 December 2009
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Finland - 16 December 2009
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Iceland - 16 December 2009
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Iceland - 16 December 2009
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Norway - 16 December 2009
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Greenland - 16 December 2009
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Sweden - 16 December 2009
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Norway - 16 December 2009
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Ireland - 8 December 2009
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Sweden - 16 December 2009
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Netherlands - 23 October 2009
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Ireland - 8 December 2009
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Australia - 27 October 2009
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Netherlands - 14 September 2009
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New Zealand - 9 July 2009
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Monaco - 1 September 2009
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San Marino - 1 September 2009
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Of interest, both Samoa and the Cook Islands have entered into TIEAs with Australia. For a discussion of the Australia - Cook Islands TIEA please see “OECD – Tax Information Exchange Agreements – Developments in the Cook Islands”. However, to date, Samoa and the Cook Islands have not passed legislation needed to implement the TIEAs domestically.(5)
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Footnotes
1.The internationally agreed tax standard, which was developed by the OECD requires exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to domestic tax law and bank secrecy provisions for tax purposes.
2.“Promoting Transparency and Exchange of Information for Tax Purposes”, OECD, 10 February 2010, page 3, paragraph 6, http://www.oecd.org/dataoecd/32/45/43757434.pdf
3.Ibid page 3.
4. http://www.oecd.org/document/37/0,3343,en_21571361_43854757_44270949_1_1_1_1,00.html.
5.“Promoting Transparency and Exchange of Information for Tax Purposes”, OECD, 10 February 2010, page 4, http://www.oecd.org/dataoecd/32/45/43757434.pdf.
This article has been prepared for the general information of clients and contacts of PLN Lawyers Sydney and the affiliated firms of the Pacific Legal Network. While it deals with and comments on the law in specific areas it is not intended nor should it be used, as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.
PLN News February 2010
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