Actions by past administrations that used Nauru as a tax haven for offshore banking and dubious financial transactions will never be repeated after the Waqa Government committed to an international convention aimed at stamping out illegal practices.
Part of the Organisation for Economic Co-operation and Development (OECD) since 2009, Nauru has applied to join the OECD's Convention on Mutual Administrative Assistance in Tax Matters, a body set up to clamp down on the practice of offshore tax evasion through the exchange of financial and tax related information.
Nauru's Minister for Finance David Adeang says this Automatic Exchange of Information (AEOI) is a major move in strengthening Nauru's push to increase transparency, accountability, and co-operation between stakeholder countries holding offshore accounts.
"Under this convention, not only will financial accounts in Nauru become more scrutinised, but it will help our Treasury recover tax revenue from non-compliant taxpayers."
"All past connections with Nauru being labelled a tax haven are now well and truly over as Government continues to show leadership and transparency in these economically important matters."
Minister Adeang also says the commitment to the AEOI is further proof of Nauru's economic coming of age after the nation was awarded membership from the World Bank and International Monetary Fund.