specially empanelled commission made up of representatives from both spectrums, i.e.
the developed nation and the recognized offshore centers. This would certainly give
credence to any recommendations because the offshore centers would have a forum to
not only voice their opinions but the ability to partake in the final decision making
One problem that the OECD has not adequately solved is the appearance that
the Harmful Tax Competition Report 1998 is simply an arbitrary act aimed at creating a
tax cartel for the rich countries at the expense of the smaller developing states.
This thesis also calls for, which is in agreement with one expert139, governments to
consider the establishment of a World Tax Organization (WTO) in which all countries
would ideally be members. The (WTO) chief aims would be to coordinate and negotiate
an acceptable balance between the tax systems of competing states with a view to
providing a more equitable tax environment. It is submitted that until such a global
organization is chartered governments will continue to provide extensive loophole and
non-dom rules in order to effectuate an increase in capital investments.
As shown in the previous chapter most of the developed countries themselves have very
extensive measures aimed at simply attracting the foreign investor via preferential tax
Without some of the above recommendations it is clear that the following quote may very
well become reality in the near future:
138 139 Ibid Langer, Marshall J. Harmful Tax Competition: Who Are The Real Tax Havens? Tax Notes, January 29,th 2001