“PM Cameron also ruled out blacklisting countries on the basis that they were zero- or very low-tax jurisdictions.”
“Asked about blacklisting tax havens, the PM said: “We’re happy to support blacklists but we don’t think we should draw up a blacklist solely on the basis of a territory raising a low tax rate – we don’t think that’s the right approach.”
Why do these two statements give PM pole-position?
For one its fair and balanced and recognises that you cannot legitimately engage in a tax rate debate when the EU and OECD have set down a tax rate which support’s Ireland’s international Financial Centre at 12.5% below which countries are deemed to be ‘tax havens’.
It is fair and balanced because we know the Us is now the leading International financial Centre in large measure because of their refusal to participate in the new Automatic Exchange of Information standard on a multilateral basis if they do not trust the confidentiality standards some countries who are already committed to this higher standard of transparency and international tax cooperation.
It is fair and balanced because the setting of tax rates is still within the sovereign rights of independent countries regardless of their geographical ‘footprint’.
It is fair and balanced because it is incredulous that a prime Minister or other head of government would disparage another country on tax rates with the knowledge that the effective tax rate in a number of cases is zero.
I guess though the most compelling reason for PM’s Cameron’s ascendency in my book is that hopefully he can spare us a re-hash of the pillar of the failed OECD ‘Harmful Tax Competition Initiative where the was a concerted effort to render successful, responsible, small state International Financial Centres uncompetitive vis-a-vis those in Europe. Hopefully the statement by PM Cameroon will also cause the IMF who either deliberately, or in a most peculiar example of extreme ‘laissez faire’ have resurrected, almost to the comma, the OECD narrative on so-called harmful tax competition.
Bonus Points for PM Cameron whould have been genrated by the following:
“In terms of who is at the top of the pyramid of tax secrecy, I think it is now unfair to say that about our Crown Dependencies and Overseas Territories,” the PM told the House of Commons at Prime Minister’s Questions.”