Barbados and Canada have taken steps to amend their tax regimes in response to a peer review assessing the “harmfulness” of tax regimes and thus the peer review outcomes have been updated, the OECD said today.
The peer review, conducted by the “Inclusive Framework on BEPS,” coalition of over 100 countries, last October released a peer review considering whether countries’ tax laws are considered harmful preferential tax regimes. Such regimes facilitate tax avoidance by multinationals and reduce the tax base of other countries.
According to today’s OECD announcement, Barbados has committed in a letter to amend two regimes previously deemed “potentially harmful,” namely, its international financial services and credit for foreign currency earnings/credit for overseas projects or service regimes. As such, the Inclusive Framework agreed to update the conclusion in its peer review report and deem the two Barbados regimes to be “in the process of being amended.”
A Canadain regime for international banking centres, previously found “potentially but not actually harmful,” has been updated in the peer review to “abolished,” the OECD said.