Germany and France urge evasion blacklist review

The Organisation for Economic Co-operation and Development is being urged to re-examine its list of tax haven countries in a bid to bolster moves against tax evasion, reports The Financial Times.

France and Germany have called on finance ministers to issue a mandate to the OECD when they discuss the initiative at the next meeting of the G7 leading industrialised nations, in Osaka, Japan, on June 13.

They hope the move will result in the reinstatement of laggard countries on to the list of uncooperative tax havens run by the OECD, the body co-ordinating global action against such financial centres.

Paris and Berlin want the OECD to evaluate which countries have followed through on promises to curb evasion and put those that fail the test back on the blacklist, which carries a threat of retaliatory measures. An OECD summit in September would then discuss what action to take. Some 35 jurisdictions have made such promises, according to the OECD.

The move follows Germany’s investigation into tax evasion occurring in Liechtenstein. At present there are just three countries on the OECD list of tax havens - Liechtenstein, Monaco and Andorra.

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