Center for Freedom and Prosperity Special Alert
As you can see, there have been important developments in the battle for tax competition, financial privacy, and fiscal sovereignty. On the positive side, it appears that we have achieved all of our
short-term objectives. The blacklist and threat of sanctions likely will be delayed, and the tax harmonization aspect of the OECD campaign has been thwarted. On the negative side, it is still not clear whether we
have stopped the assault on financial privacy. As mentioned in Dan Mitchell's memo earlier this week, information exchange is desirable in the fight against crime. It is not okay, however, when it is used in an
indiscriminate fashion to enforce bad tax laws on an extra-territorial basis. In the coming months, we will be fighting to ensure the correct outcome.
We will make one quick prediction: The OECD is a master of the art of "spin control." As such, we expect that they will renew pressure on low-tax jurisdictions by claiming that the United States has
decided to support the OECD view of information exchange. This is not the case, and we will be sending out a memo on this topic either later today or tomorrow morning. Low-tax jurisdictions should not allow
themselves to be bullied or misled.
Below is a copy of Dan Mitchell's CFP strategic memo and some of the recent news articles.
Center for Freedom and Prosperity
CFP Strategic Memo on Information Exchange
Wall Street Journal, June 15, 2001, By Michael M. Phillips, Economy: U.S., Allies To Ease Curbs On Offshore Tax Havens
Tax-news.com, June 14, 2001: OECD May Delay Sanctions
Bloomberg News, June 12, 2001, By Michael Bleby, OECD Likely to Push Back Tax Haven Sanctions Deadline
CFP News Summary (World Tax Daily), June 14, 2001, U.S. and OECD Inch Toward Tax Haven Deal
Tax-News.com, June 13, 2001, by Mike Godfrey, CFP Warns Offshore Jurisdictions About Information Exchange