The
Organisation for Economic Co-operation and Development praised
jurisdictions for progress made in exchanging tax details and
transparency but warned that some nations still need to move faster to
fully comply with standards.

In comments issued at a gathering of Group of Twenty world leaders in
Los Cabos, Mexico, Paris-based OECD, which has created a Global Forum
on Transparency and Exchange of Information For Tax Purposes, said there
has been “steady progress” towards a goal of increased transparency.

G20 nations such as the UK, Germany, France and the US have been
putting pressure on financial centers, such as Switzerland, the Cayman
Islands, Liechtenstein and Monaco, to become more co-operative in
exchanging tax information as large, often heavily indebted nations
battle to close massive budget shortfalls. Dozens of jurisdictions have
signed tax information exchange agreements in line with OECD standards.

Despite such pressures, the supposed demise of offshore wealth in the
face of such pressures has not happened. In a report by Boston
Consulting Group, issued at the start of June, it said that offshore
wealth - defined as assets booked in a country where the investor has no
legal residence or tax domicile – rose to $7.8 trillion in 2011, up by
2.7 per cent from the previous year. The rate was faster than for the
rise in global wealth as a whole.

A total of 79 published “peer reviews” have been issued by the OECD,
and a further 17 such reviews have been launched. Phase One reviews look
at the legal and regulatory framework of a jurisdiction, while the
Phase Two report will look at how standards are enforced in practice.

“Overall, the quality of co-operation within the Global Forum has
been very satisfactory, with new members joining and more jurisdictions
and implementing policy and legislative changes that address the
deficiencies identified in their reviews,” the report said.

However, the report added: “Nearly all peer reviews to date also show
that improvements are needed, with 32 reports concluding that one or
more essential for the exchange of information are not in place. Where
these deficiencies are serious, the move to the Phase Two reviews have
been put on hold.”

The OECD said there are 12 jurisdictions where all elements of
exchange of information and other requirements are in place with no
significant improvements needed in any of them (Australia, China,
France, India, Ireland, Isle of Man, Italy, Japan, Malta, Norway, Qatar,
and the Seychelles).

A further 20 jurisdictions will need to improve one or two elements
(Belgium, Bermuda, Brazil, Canada, Cayman Islands, Denmark, Estonia, the
Former Yugoslav Republic of Macedonia, Germany, Greece, Guernsey,
Republic of Korea, Mauritius, Mexico, the Netherlands, New Zealand,
Saint Kitts and Nevis, Spain, Turks and Caicos, and the US).

Eleven jurisdictions will have to improve three or four elements
(Bahrain, Chile, Curacao, Ghana, Hong Kong, China, Jersey, Macao China,
the Philippines, San Marino, Singapore and Slovak Republic). Four
jurisdictions will have to improve five elements (Andorra, Aruba,
Barbados and Malaysia).