The Global Tax Justice Network has welcomed proposed changes to United States tax laws that would pave the way for sanctions against Pacific nations providing tax havens.
The US senate is currently considering the Stop Tax Haven Abuse Bill which would penalise citizens using offshore banking systems as tax havens.
US Internal Revenue Service court filings show countries like Vanuatu, Samoa and the Cook Islands are being used as probable tax havens.
The co-ordinator of the network, John Christensen, says some Pacific countries like Nauru have removed their offshore banking services.
But he says others continue to provide such services so that tax authorities can't access needed information.
"Islands which currently offer off shore finance centres and tax haven services to people around the world, need to completely rethink their development strategy. By and large, the people who benefit from this are not actually the islanders - the islanders themselves often fine they are not that much better off, if they are better off at all. That is in my experience."
John Christensen
