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Non-cooperative tax havens

The Organisation for Economic Cooperation and Development published a blacklist of countries that it considers “non-cooperative tax havens” in an attempt to call them out, shame them, and sanction them into compliance with the more enlightened, tax-happy governments of the world.

On Thursday, G20 leaders agreed to take sanctions against tax havens using the OECD list as its basis.

In their communique, they agreed, “to take action against non-cooperative jurisdictions, including tax havens”.

“We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over.”
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“I am pleased that Uruguay joins a growing number of nations willing to co-operate in fighting tax evasion and other tax abuses,” said Mr Gurria [Secretary-General of the OECD].
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“[Non-cooperating countries] will move because they know the question of sanctions, however ill-defined that was, is going to affect them somehow.”

The Philippines is already reported to be taking steps to remove itself from the blacklist.

“The Philippine government would take the necessary steps to ensure we meet their expectations,” Trade Secretary Peter Favila told the Associated Press news agency.

“It is really up to us to prove them wrong.”

Oh, you can prove them wrong, all right, but cowering and apologizing for your delayed compliance is not the right way.

This creeps me out. The growing importance and power held by international organizations like the OECD portends a shift in governing powers from nation-states to a world government sooner rather than later. Lest you dismiss this as undue conspiracy-theorizing, the efficacy of the OECD’s sanctions and the craven compliance of practically every government in the world are concrete evidence of the de facto authority possessed by such supra-national bodies. From de facto to de jure has historically been a small leap.

Freedom-loving people should be alarmed at the intolerance that powerful nations have for governments that don’t fall in lock-step behind their mandates. Sadly, freedom-loving people are a small minority anymore, and the majority of human beings want more, larger, grander government! The more global the government, the more effectively the wishes of the organizers can be forced on more people (or so they think). This reminds me of an old but forever-apt libertarian saying: The difference between libertarianism and socialism is, a libertarian society will tolerate the existence of a socialist society, but a socialist society cannot tolerate the existence of a libertarian society.

As for the publication of this “blacklist,” I’m glad I now know that Costa Rica and Malaysia, at least, are considered tax havens who don’t cooperate with the draconian tax laws of other nations! Not that I have any intention of moving there or moving my money there; I just like those governments a little more now. Good for them!

Posted in Taxes