Additional comments on tackling cross-border evasion

ADDITIONAL COMMENTS ON TACKLING CROSS-BORDER EVASION
Ms. Kristin Halvorsen, Norwegian Minister of Finance
March 6th, 2008

The Liechtenstein scandal, which has affected OECD countries around the globe, has highlighted the need and urgency of increasing transparency and strengthening international co-operation on tax matters.  Although the current scandal involves Liechtenstein, it could have occurred elsewhere. The OECD has already developed the standards and model agreements necessary to facilitate the implementation of high standards of transparency and information exchange.  Norway is using the OECD 2002 Model Agreement as the basis for bilateral agreements with offshore jurisdictions and hopes to conclude several negotiations in the coming months.  It is essential to work towards a level playing field on these issues so that tax evaders will not simply shift their activities from one secrecy jurisdiction to another.

Norway is committed to concluding its negotiations rapidly but recognises that some jurisdictions may be unwilling to implement the OECD standards.  There is a need to prevent those who refuse to implement the standards from profiting from their refusal and the fact that the facilitation of tax evasion by the residents of other countries should no longer be tolerated. The OECD’s Committee on Fiscal Affairs should therefore accelerate its work on the development of a “toolkit” of effective defensive measures for countries to consider implementing.

Norway is not only very concerned about the harmful effects of secrecy jurisdictions on its own tax system but also of the effects on developing countries and the funding of international development and is exploring with the World Bank further research on these issues.  It would be useful for the World Bank and the OECD to carry out this work through the International Tax Dialogue, an initiative launched by the World Bank, OECD and IMF in furtherance of the Monterrey Consensus.