Switzerland is livid after it was put on tax haven 'grey list' by the ­Organisation for Economic Co-operation and Development (OECD) at the G20 summit and is contemplating measures to hit back by delaying payment of its membership fee.

Leaders at the G20 meeting had threatened to be decisive against "noncompliant" jurisdictions that refuse to respect OECD, a 30-member organisation of major industrialised countries, especially against tax haven countries. (See: G-20 cracks whip on tax havens; OECD publishes blacklist)

The leaders of the most powerful 20 nations in the world, which together represent roughly two thirds of the global population and 90 per cent of the world's gross domestic product, agreed to fix the loopholes that currently exist around hedge funds and tax havens and impose sanctions on those countries that evade giving information on tax evaders.

The OECD had listed 38 territories as those that ''have committed to the internationally agreed tax standard but have not yet substantially implemented'' the measures and the countries were Belgium, Brunei, Chile, the Dutch Antilles, Gibraltar, Liechtenstein, Luxembourg, Monaco, Singapore, Switzerland and Caribbean island nations including the Bahamas, Bermuda and the Cayman Islands.

Costa Rica, Malaysia, Philippines and Uruguay made commitments to the internationally agreed tax standard on exchange of information as required by the OECD subsequently.

Swiss politicians were enraged to find their country on the OECD's "grey list" after it had announced measures to relax its tax secrecy laws and Switzerland is now considering blocking the progress in cooperation with China, India and other emerging countries, according to Swiss officials, as reported in The Neue Zuercher Zeitung (NZZ).

Switzerland on its part, started blocking payment of €136,000 ($180,000) to the OECD.

The OECD issued a statement on 9 April saying it regretted that Switzerland had blocked €136,000 destined for collaboration between the OECD and the G20 group of countries.

Secretary-general Angel Gurría expressed his regrets that the Swiss government has decided to deny the approval of a budget line in the Organisation that aims to strengthen co-operation with the G20, at a time when the world is in need of greater co-operation and co-ordination to overcome the worst crisis in decades.

Further, Swiss officials are considering delaying their membership subscription of 10 million Swiss francs ($8.65 million) and / or may also consider blocking OECD secretary general Angel Gurria re-election due to come up in 2011, according to media reports.

The tax haven matter has now gained importance as many countries believe that it has played a role in bringing about the worst global financial crisis since the 1930s and are now pressing for a wider regulatory crackdown to curb abuses.

Switzerland had been warned of being placed on the "grey list" of countries, which are being closely monitored to see if they make changes to their tax legislation.

On 9 April, Gurria, said in his letter that some Swiss officials have characterised the OECD as not being fair to the Swiss government on the issue of international co-operation on tax matters although Switzerland does not yet have a single agreement on the exchange of tax information that conforms to the OECD standard.

"In this financial crisis the OECD shouldn't be dishing out stars to good and bad states like a restaurant guide.'' said the Swiss Interior Minister Pascal Couchepin to Sonntag newspaper yesterday.