Ummid Assistant

Delhi University launches web chat facility for admission seekers

Samsung to offer scholarships to IIM-A students

Welcome Guest! You are here: Home » International

Tax havens under pressure to share black money secrets: OECD official

Thursday June 16, 2011 08:44:03 AM, Gyanendra Kumar Keshri, IANS

Related Articles

Govt seeks public views online on blackmoney issue

The government today created an email id for public to send their ideas and inputs to tackle issues arising out of blackmoney. The email -- -- has been created on the server of the National  »

New Delhi: Global bodies are putting "enormous pressure" on tax havens like Switzerland and Luxembourg, including threat of sanctions, to change opaque laws and share information that will help countries like India trace huge sums of black money stashed abroad, said a senior OECD official.

"There is a sea change. Political tolerance towards tax havens is coming to zero level. G20 and OECD are putting enormous pressure on them to change," said Jeffrey Owens, director of the OECD Centre for Tax Policy and Administration.

He said the Organisation for Economic Cooperation and Development (OECD) was working closely with G20, the group of 20 most powerful nations, to force tax havens to be transparent and cooperate with other countries to help curb tax evasion and money laundering.

"You have to be transparent. You have to give access to information and you have to have legal instruments in place to exchange the information. We have to do this in a way that we achieve a level playing field," Owens told IANS in an interview here.

The issue of black money and tax havens have attracted a lot of public and media attention in India.

"It is a big issue in India. At the same time, it is a global issue. People are uniting against it." Owens said.

He said the OECD had adopted a set of criteria for blacklisting tax havens if they refuse to cooperate.

"We are making sure that all countries, including OECD member countries like Switzerland, Luxembourg and Austria, implement the decisions. Otherwise they will face sanctions," said Owens.

The Paris-based OECD, a grouping of 34 countries, accounts for nearly 80 percent of world trade. Although India is not a member, it has close relations with OECD and has joined its multilateral platform initiative to check tax evasion and money laundering.

India has also urged countries like Switzerland and Luxembourg to share banking information of Indian citizens and people of Indian origin to help trace billions of dollars of black money.

According to unofficial estimates, the quantum of Indian black money ranges from $450 billion to $1,400 billion.

Owens said that at the G20 Cannes summit in November 2011, OECD would recommend tough action against tax havens.

He hoped that these countries would transform themselves and cease to be a shelter for people looking to evade taxes, launder money and engage in illicit economic activities.

"They are going to cease to be tax havens. Sure, they will exist but they can't operate the way they have been in the past. Some are sophisticated countries and might transform themselves as off-shore financial centres."

These countries or territories have laws to attract foreign capital and offer individuals and businesses little or no tax liabilities.

Owens said a series of tax information exchange agreements signed between countries would enable them to get information on tax evaders.

"In the last two years, over 600 tax information exchange agreements have been signed. India has signed 14 agreements. This will enhance cooperation among countries," he said.

The OECD official said tax evasion and money laundering had resulted in the loss of over $100 billion to government exchequers worldwide, and were among the major reasons behind the global financial crisis.

"Whether it's tax evasion, money laundering, bribery, bad governance, all these thrive in a climate of secrecy, weak regulation and weak cooperation. We must fight each of these.

"If you make progress in counter-acting tax evasion, you also make progress in counter-acting money laundering," he added.

(Gyanendra Kumar Keshri can be reached at




  Bookmark and Share                                          Home | Top of the Page



Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS




Top Stories

Students baffled as Delhi University's cut-off marks shoot up

Students aspiring to join Delhi University for undergraduate courses were aware that admission cut-offs this year would be high, but they were clearly left baffled when the qualifying   »

100 percent cut-off an attempt to keep away science students: Sibal

Even Shakespeare would not get 100 percent in English today: Yechury


  Most Read

Deadlock between Team Hazare, government continues

The deadlock between the government and Team Hazare continued Wednesday with union Human Resource  »

Lokpal panel meets for consensus amid sharp differences

Journalists fast for CBI probe into Dey murder

Journalists in Maharashtra Wednesday took part in relay hunger strikes to denounce the government's refusal to hand over the probe into journalist Jyotirmoy Dey's murder to the CBI. »

ACP transfer linked to scribe killing? Mumbai top cop says no


  News Pick

Govt seeks public views online on blackmoney issue

The government today created an email id for public to send their ideas and inputs to tackle issues arising out of blackmoney. The email -- -- has been created on the server of the National  »

Huge case backlog before Supreme Court's constitution bench

Around 750 cases involving complicated issues of law or interpretation of statutory provisions have been pending before the Supreme Court's constitution bench years, causing   »

Arab League states seek suspension of Syria

Many of the Arab League member countries have proposed suspending Syria's membership in the organisation over violent crackdowns on pro-democracy protests by its government, the Egyptian Al  »

Mamata orders probe into Congress workers' 1970 killing

West Bengal Chief Minister Mamata Banerjee Tuesday ordered judicial inquiry into the Sainbari case, in which four Congress loyalists were killed 41 years back allegedly by Communist Party of India-Marxist (CPI-M) backed   »

52 Goa school kids hospitalised after mid-day meal

A total of 52 students of a government school in Goa have been hospitalised after they complained of nausea soon after eating their mid-day meal Wednesday, an official said. The Official said that while most of the students   »


Picture of the Day

A shattered photograph of the artist in a vandalised exhibition in New Delhi in August, 2008. The artist and his paintings have been a target of a Hindutva hate campaign. Some groups alleged that his work hurt religious sensitivities.

(Photo: V.V. Krishnan/ The Hindu)



RSS  |  Contact us

| Quick links



Subscribe to

Ummid Assistant






About us




Government Schemes










Contact us





      Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2010 Awaz Multimedia & Publications. All rights reserved.