Swiss ministers on Saturday cast doubt on the criteria behind the OECD's classification of tax havens, which was at the heart of a crackdown announced at a Group of 20 summit this week. Switzerland, Austria, Belgium, Luxembourg, Singapore and more than 30 other territories were placed in a second tier of states that have committed to the Organisation of Economic Co-operation Development's tax co-operation norm but not yet "substantially" implemented it.
In a newspaper interview, Foreign Minister Micheline Calmy-Rey welcomed the presence of a follow-up, "because we have to watch that our competitors also implement what they have promised and are subject to the same standards as we are."
"The enormous surprise comes from the first category - that of the jurisdictions which are regarded as co-operative and cleared of all suspicions," she told the daily Le Temps, suggesting that big powers were sheltered. Forty jurisdictions were listed in the top tier as having "substantially implemented" the OECD standard on exchanging tax information.
Apart from major economies, they included the British dependent territories of Guernsey, Jersey and Isle of Man, as well as the US Virgin Islands, which have a reputation for secretive financial rules. Media reports indicated that at least 12 tax information exchange agreements with another country are necessary to reach the top tier.
"No one has been able to explain to me so far how this figure of 12 came about. It would be childish to insist on it," Swiss Finance Minister Hans-Rudolf Merz told the Tages-Anzeiger newspaper. Switzerland formally decided on March 13 to ease banking secrecy and fully adopt OECD tax standards.
Last week the government approved talks with the United States and Japan to reinforce tax co-operation. Several European countries are expected to follow and Merz said he hoped to have put together an "excellent number" by the end of the year.
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