<P> Harmful Tax Competition: An Emerging Global Issue is a report issued by the Organisation for Economic Co-operation and Development's Centre for Tax Policy and Administration . </P> <P> In the report, the OECD groups countries into three categories: member country preferential regimes, tax havens, and non-member economies, and establishes criteria for identifying each . Tax havens are characterised by having only nominal or no taxes, impeding the free exchange of information on taxpayers with other governments through administrative practices or laws, non-transparency, and a lack of substantial activities . Harmful preferential regimes, whether in member or non-member countries, are identified by four main traits . Like tax havens, their legal or administrative systems hamper the exchange of information and create an absence of transparency, and have effectively low or no taxes . Finally, the regime may partially isolate itself from the taxpayers and bear little to none of the tax burden, a practice known as "ring - fencing ." </P>

1998 oecd report harmful tax competition an emerging global issue