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The Organization for Economic Cooperation and Development (OECD) listed the Philippines as one of four countries that have not committed to the international standards for tax cooperation. The main problem being pointed out for its inclusion in the OECD list of tax havens is the existence of laws that strictly uphold confidentiality of bank accounts which make it very difficult to access relevant bank information for tax purposes.

After expressing its commitment to meet international standar ds, the country was immediately removed from the list of “uncooperative tax havens” and transferred to the “grey” list of countries “committed to the internationally agreed tax standards but have not yet substantially implemented”. Failure to implement the required reform measures may unduly expose the country to a number of sanctions that would have negative repercussions on the whole economy. Among the possible sanctions are the following: (i) withdrawal of financing by multilateral institutions; (ii) reduction of ODA funds from donor countries; (iii) depreciation of the peso; and (iv) pressure on interest rates. The imposition of any of the sanctions would make doing business with other countries difficult, expensive and time consuming.

The OECD is expected to monitor the progress in the implementation of the agreements of countries concerned and it is scheduled to release another report by November this year. To be fully compliant to the international standards and avoid sanctions, the country needs to align local laws with globally accepted standards. Specifically, the amendment of laws that restrict access to bank information and the passage of a law that seek to promote transparency in tax collection are very important. >>read complete document

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer

 

 

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer

 

 

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer