Some 17 countries led by France and Germany have decided to draw up a new blacklist of tax havens at a meeting in Paris.
There are around 40 tax havens in the world where undeclared revenue is hidden and which host many of the non-regulated hedge funds that have come under fire during the current financial crisis.
Currently, the Organisation for Economic Cooperation and Development’s blacklist only includes Monaco, Andorra and Liechtenstein. Germany wants Switzerland to be included, arguing it offers conditions that invite German taxpayers to evade taxes.
Switzerland, along with Luxembourg, decided to boycott the meeting. Other OECD member states like the United States and Austria declined to send representatives.
The OECD has until the middle of next year to draft the new list, when a conference will be held in Berlin to decide on further steps.