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setting out the Harmful Tax Competition Report has led to some experts including United

States Republican Congressman Richard Amey as labeling the OECD “A Tax Cartel”88


Further, it follows that the smaller and less developed nations do have a legitimate

grievance in the handling of the problem by the OECD. It is clear that no sanctions have

been made against the membership of the OECD should they refuse to abide by the

report. On the other hand, third world countries, which refuse to collaborate with the

OECD, have been threatened with numerous actions ranging from refusal of aid, and

government backed loans to economic sanctions.

The developed world has shown through its report of the OECD that it does not intend to

provide a fair basis upon which the worldwide problem of preferential tax regimes can be

solved. Interestingly, the double standards of the OECD nations can similarly be viewed

in a recent edition of The London Financial Times. The Australian Federal Government

placed an ad in the magazine which touted one of the Southwestern states as having a

new three billion dollars funding from the federal government in order that it can provide

detailed, expedient and confidential offshore financial center type business.89

As illustrated in the list of the twelve OECD member states above there are considerable

tax advantages that the membership of the OECD still are delivering to the wealthiest

countries such as Costa Rica, Cyprus, Guam, Hong Kong, Malaysia (Labuan), Malta, Singapore and Uruguay, all of which can be and has been used as tax havens.”

88 89

Supra note 47 above The Financial Times Newspaper February 9th, 200 edition

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