EU calls for tax haven blacklist in Paradise Papers fallout

By bne IntelliNews November 9, 2017

The finance ministers of the European Union member states have called for the creation of a blacklist of tax havens to crack down on tax dodging, the ministers said at a meeting in Brussels on November 7.

The issue of tax dodging by wealthy and powerful people has been highlighted yet again by a leak of documents known as the Paradise Papers. The documents uncovered dubious tax dealings by a number of companies and individuals, drawing an angry reaction from the EU.

The EU now wants to compile a list of tax havens that offer reduced or zero taxation rates luring companies or wealthy individuals to avoid taxation in their home countries.

“There was strong support for the idea of moving forward quickly,” Estonian Finance Minister Toomas Toniste said in Brussels, Reuters reported. Estonia holds the EU’s rotating presidency until the end of the year.

However, not all countries are keen on the idea of a crackdown or on tackling the issue of tax dodging with equal force, it seems, as some of them make good money from the business. The main point of contention in the discussion is whether the eventually blacklisted countries should be sanctioned or not.

While some of the locations that could go on the blacklist include offshore jurisdictions such as Bermuda or Jersey – both British territories – there are also regular member states like Malta or Luxembourg that have been under fire for being tax havens. Latvia is another country with a history of offering advice on dodging tax as is Cyprus.

The EU is currently looking at about 50 locations worldwide, suspecting them of offering tax haven conditions.

Related Articles

Latvia’s leading bank vows to co-operate with US over bribery and money laundering charges

ABLV Bank, the second largest bank in Latvia, said on February 14 it will cooperate with the US Treasury’s Financial Crimes Enforcement Network (FinCEN) over allegations that it was involved in ... more

Lithuanian retail sales growth slows down in December

Lithuanian retail sales growth slowed down to an unadjusted 4.3% y/y in December at constant prices, Statistics Lithuania reported on January 26. Throughout 2017, growth came in at ... more

Agreements with Armenia highlight of uneventful EU Eastern Partnership summit

The EU and Armenia signed a comprehensive and advanced partnership agreement and a common aviation area agreement at the Eastern Partnership summit on November 24, according to an ... more

Dismiss