Tax Havens and Public International Law: The Case of the Netherlands Antilles


This paper identifies changes to tax havens’ legislation as a result of pressure from rich countries exercised through the OECD. It focuses on the specific situation of the Netherlands Antilles. The paper analyzes the response given by the Netherlands Antilles to the international community through the modification of its tax agreement with the mother country in Europe, and considers whether this is a solution for adoption by other tax havens. The paper then argues that such a model is not appropriate for use in a small economy which cannot rely on a supportive mother country nor on tourism as an alternative resource. The paper concludes that the legal status of small island states could be reconsidered in public international law and proposes that rich countries adopt a balanced approach when considering harmful tax competition.


International Law | Taxation-Transnational | Tax Law

Date of this Version

March 2005