OECD plans could be death penalty for Bermuda’
A new tax convention put forward by the Organisation for Economic Co-operation and Development (OECD) would be the “death penalty” for Bermuda and other jurisdictions, according to Dan Mitchell, of US think tank the Cato Institute.
Mr Mitchell, who was staying at the Fairmont Southampton during the OECD’s Global Forum this week but barred from the event, said that the Convention on Multilateral Administrative Assistance in Tax Matters would enable any jurisdiction signed up to it to exchange information with another one and included automatic information sharing, allowing foreign governments to come into any country to conduct tax audits.
He told The Royal Gazette that, if implemented, the convention would give the OECD the role of “judge, jury and executioner” allowing them to effectively dictate the terms to jurisdictions in future Global Forums as it would be open to their interpretation and enforcement.
“Basically this is the death penalty for Bermuda and other jurisdictions,” he said.
“Whether they get to their final goal in five, 10 or 15 years depends on how much each jurisdiction fights it.”
Mr Mitchell said that the purpose of his visit was to offer advice to jurisdictions being “pursued” by the OECD.
“The OECD would rather chew on broken glass than let me attend one of their conferences,” he said.
“I am here giving behind the scenes advice to jurisdictions to tell them what they can do to protect themselves from this ‘fiscal imperialism’, for lack of a better phrase.”