Ethics and governance in the European Financial centers

This is the mail I sent today:



Dear Mr Gurria

I have read in the media the cabal against the OECD and yourself, conducted by four jurisdictions that were qualify “Other financial centers” in the list the OECD published on 2 April 2009:
• Switzerland,
• Belgium
• Austria
• Luxembourg

You will compare the professionalism and the responsibility of the authorities in Monaco for instance, with what authorities of the aforesaid jurisdictions are doing, including the chairman of the Eurogroup.

I express you my support and my encouragements to make the decisions which are essential.

As I wrote previously, your list is neither fair nor coherent, which gave arguments to these jurisdictions

But, there is something quite strange in the funding of the OECD. How these jurisdictions, that have their GNP and GDP higher than the top contributors to the OECD budget, have a ridiculous contribution share in percentage to the OECD budget:
- 1.500%: Switzerland
- 1.415%: Belgium
- 1.147%: Austria
- 0.216%: Luxembourg

The 4 jurisdictions, that contribute to 4.278% to the OECD budget (around 13 million out of 303 million in 2009), make a lot of money thanks to their laws and regulations, and use their membership to put in failure measurements for fair business. It is true as well for European regulation (Cf. what Minister Frieden said about the Savings Directive).

You definitely did a mistake by stating in a letter to Minister Frieden that "from an OECD perspective, none of our Members qualify as tax havens".

If these jurisdictions are not happy with the OECD they must quit the OECD, which would allow you to qualify without renunciation as tax havens those that will not respect their commitment: anyway the gain recovered for other jurisdictions would allow an increase of the contribution shares that would compensate the small loss.

Yours sincerely

Jérôme Turquey
Consultant is business ethics and reputational risk
http://ethiquedesplaces.blogspirit.com

Switzerland used its veto rights to withhold EUR 136,000 earmarked for cooperation between the Organisation for Economic Cooperation and Development and the Group of 20 countries.
The jurisdiction is supported by Belgium, Austria and Luxembourg.

There contribution share in percentage to the OECD budget is the following :
1.500: Switzerland
1.415: Belgium
1.147: Austria
0.216: Luxembourg

The 4 jurisdictions contribute to 4.278% to the OECD budget.

Why not puting them on the blacklist once for all as this is definitely a non-cooperative attitude? The recovered money would largely compensate...

Above all this would allow Mr Gurria to respect what he wrote to Minister Frieden : "from an OECD perspective, none of our Members qualify as tax havens". If these jurisdiction are no longer OECD member, Mr Gurria will be able to qualify those that do not respect their commitment as tax havens without renunciation.

Quod erat demonstrandum.

Reuters has reported that centers blacklisted last Thursday in a renewed crackdown on tax fraud were taken off the list today after committing to international standards on bank information disclosure.

The Organization for Economic Cooperation and Development said that it was moving Uruguay, Costa Rica, Malaysia and the Philippines to a grey list of offenders that say they will put things right, a long list.