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KL committed to global tax standards, says PM

By Sunday April 5th, 2009 No Comments

KUALA LUMPUR, April 3 — Malaysia has committed to internationally-agreed tax standards in practice and should not be categorised under jurisdictions that have not, Datuk Seri Najib Tun Razak said today.

The newly-minted prime minister said Malaysia had reaffirmed this to the Organisation for Economic Cooperation and Development (OECD) leaders last week.

“We should not be in that category as in practice we have been committed to OECD requirements,” said Najib in a statement today.

Najib, who is also Finance Minister, was responding to reports that Malaysia and its offshore jurisdiction, Labuan International Business and Financial Centre (IBFC), has been categorised as “jurisdictions which have not committed to the internationally-agreed tax standards”.

“I understand that the list is a progress report or status report of jurisdictions which have not committed to the internationally-agreed tax standards,” he added.

Najib also clarified that Labuan has never been in any list of “tax havens” issued by OECD and Malaysia has always been cooperative with competent authorities.

“At all times, Labuan IBFC, LOFSA and Malaysian authorities have been co-operative with competent authorities from other countries on tax matters and financial crime, particularly money laundering.

“Our commitment is further evident from the on-going efforts to tighten provisions of EOI which are already in keeping with OECD requirements,” said Najib.

“Certainly, we expect the OECD to amend the list to put us in the category of jurisdictions that have committed to the internationally agreed tax standard.”.

In a statement, Labuan Offshore Financial Services Authority (LOFSA) welcomed the approach by the G20 and OECD to take measures to stamp out tax evasion.

LOFSA said since its inception, the jurisdiction has met the highest international standards and has received positive assessments by the International Monetary Fund (IMF) under its Offshore Financial Sector Assessment Programme.

Source : Malaysian Insider

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