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Fail! Costa Rica and Guatemala Miss OECD Standards for Fiscal Transparency

Article Summary:

Costa Rica and Guatemala joined a list of 12 nations which failed the Global Forum on Financial Transparency, Organization for Economic Cooperation and Development (OECD) standards on fiscal transparency.

Photo Credit: El Mundo

Original Article Text From El Mundo via Google Translate :

Guatemala and Costa Rica suspended in transparency

Costa Rica and Guatemala joined the list of 12 nations that have not passed the first filter of the Global Forum on Financial Transparency, Organization for Economic Cooperation and Development (OECD).

Costa Rica and Guatemala suspended the consideration to which they subjected their peers for not meeting international standards on fiscal transparency, unlike the other eight territories that were tested for the first time, said in a statement the OECD.

Barbados, in a first check in October 2010 exceeded nor was subjected to a second now to assess whether he had complied with the recommendations made and then it got approved.

Thus, the aforementioned two Central American countries have now joined the growing list of those who do not respect international standards together with Panama, Uruguay, Switzerland, Liechtenstein, Antigua and Barbuda, Brunei, Botswana, Seychelles, Trinidad and Tobago, and Vanuatu.

Uruguay in December left the “gray list” of tax havens to be signed 12 bilateral agreements on information exchange.

This classification, which launched the OECD in 2009, has been deprecated to be replaced by the Global Forum’s work, there must be assessed to all jurisdictions in late 2012 to check if they have the legal instruments needed to perform with international standards.

Then proceed to determine whether such legislation is applied in practice, sources told Efe the Global Forum.

The examiners felt that Guatemalan law places restrictions, no agreements that permit effective information exchange with other countries.

Furthermore, the Guatemalan tax authorities do not have adequate powers to access information or the identification of owners of companies or partnerships or foreign groups living in the country.

In the case of Costa Rica, the assessment indicates that although the country has signed international agreements, legislation “can effectively prevent the exchange of information” and notes that the Costa Rican tax authorities do not have enough ability to access information requested by other countries.

The report states that “none of the agreements to exchange tax information comply with global standards’, saying that details are” crucial “for this exchange can be applied effectively.

In view of these shortcomings, the Global Forum has given six months to two countries to respond to the recommendations in order to reassess their situation, and meanwhile can not reach the second phase of control.

70 A total of 70 jurisdictions around the world have been subjected to analysis of its fiscal transparency.

6 Costa Rica and Guatemala have six months to respond to the recommendations.

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From El Mundo

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