OECD

On almost the eve of the publication of the OECD list of uncooperative tax havens Barbados has convinced the OECD that it should not be listed. In a statement issued by the OECD they state that "Following detailed discussions since the release of the 2001 Progress Report, Barbados and the OECD are pleased to announce that, for the reasons specified below, Barbados will not appear on the forthcoming list of uncooperative tax havens. These discussions have shown that Barbados has transparent tax and regulatory systems and has in place a mechanism that enables it to engage in effective exchange of information.

While many tax havens applaud the efforts of Barbados in avoiding being listed, there is some concern amongst the offshore centers that were part of the regional negotiating group headed by Barbados. This grouping which was formed in January 2001 at a meeting held in Barbados included St. Lucia, Antigua, St. Kitts & Nevis and several other Caribbean territories. There is some concern about the effectiveness of the regional grouping moving forward as many territories had depended on the grouping for representation and had not engaged the OECD in dialogue as independent states.

With the February 28 deadline approaching there is great interest in how these centers will respond to the threat of being listed. Some in the industry speculate that since the effectiveness of the listing is based on the imposition of sanctions by individual OECD member states, being listed is not likely to impact negatively on the centers. Further since the defensive measures are not to be implemented until 2003 there will be time to observe the impact of the listing and to respond appropriately.