On January 31, at the meeting of the Ukrainian government, it was decided to exclude 5 countries from the list of offshore companies, namely Estonia, Latvia, Georgia, Malta and Hungary.
We remind that on January 19, the Ministry of Finance of Latvia announced that the inclusion of this country in the list of offshore zones was unreasonable.
Earlier, Ukraine included Estonia in the list without notification of the Estonian government, so the Prime Minister of the state Jüri Ratas reacted by a statement on the need to remove the jurisdiction immediately from the offshore list. It took place on January 26, during his meeting in Davos with the Prime Minister of Ukraine Vladimir Groysman and the Minister of Finance of Ukraine Aleksandr Danilyuk.
In total in 2017, Ukraine expanded the list of the countries, the operations with counterparties of which are subject to control in the administration of the law of transfer pricing, to 25 countries. Guadeloupe, Guatemala, French Guiana, the Commonwealth of Dominica, the Dominican Republic, Estonia, Iran, Cuba, Laos, Latvia, Lebanon, Mauritius, Malta, Morocco, Monaco, the United Arab Emirates, Singapore, Georgia and Hungary were added to the list. At the recent meeting, Latvia and Estonia called for their exclusion from the Ukrainian offshore list.

The European Union excluded 8 countries and territories from the “black list” of offshore zones, as it was reported on the official website of the Council of the European Union on January 23. The following countries were removed from the list: Barbados, Grenada, the Republic of Korea, Macau, Mongolia, Panama, Tunisia and the United Arab Emirates. As it was noted in the message, the exсlusion was justified taking into account the expert assessment of the obligations undertaken by these jurisdictions to eliminate the shortcomings identified by the European Union. In each case, the commitments were backed up by the letters signed at a high political level. At the same time, the above countries and territories belong to a separate category now, subject to close monitoring.
We remind that on December 5, 2017 the EU announced its intention to exclude 17 jurisdictions from the “black list” of offshore zones that do not take appropriate measures to ensure financial transparency and combat tax crimes. Thus, 9 of the planned 17 countries and territories remained on the list, namely American Samoa, Bahrain, Guam, Marshall Islands, Namibia, Palau, Saint Lucia, Samoa and Trinidad and Tobago. This list also contains recommendations on the steps that must be taken to be excluded from it.

The European Union is discussing the possible exclusion of eight countries from the “black list” of offshore zones. It is reported by the IA Reuters, referring to the documents at its disposal. According to the agency, Panama, UAE, South Korea, Barbados, Grenada, Macau, Mongolia and Tunisia can be removed from the list. Such a proposal is justified by the fact that these countries have agreed to change their tax policy. In addition, an exclusion from the list of Bahrain was discussed, but in the end, it was decided to leave it on the list.
On Tuesday, January 16, the issue was discussed at the ambassadorial level. And next week the proposal will be considered by the EU finance ministers. In early December, the last ones published a “black list” of countries that did not want to cooperate with the EU in the field of tax reporting, as reported by the UNIAN. The list includes 17 countries, namely: American Samoa, Bahrain, Barbados, Grenada, Guam, Macau, Marshall Islands, Mongolia, Namibia, United Arab Emirates, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and South Korea. Offshore zones are on the territory of the most part of these states. We remind that the European Union decided to create a single “black list” after another leak of offshore documents called the Paradise Papers.

Taxes in the EU

MEPs supported the introduction of a package of measures to combat tax evasion, which include tax havens, the black list of sanctions against "uncooperative jurisdictions", and income tax throughout the EU.

Recommendations have been prepared by a special parliamentary committee of tax regulations were adopted 514 votes to 68 with 125 abstentions.

The committee's report in favor of the following:

- Total "Black list" of non-constructive EU jurisdictions, as the European Commission's proposal with the general definitions unconstructive jurisdictions, and also the provision of extension for a dialogue with jurisdictions for inclusion in the list;

- Sanctions against uncooperative jurisdictions, including the ability to revise and suspend of a free trade agreement and deny access to EU funds;

- Sanctions for companies, banks, office and law firms, tax advisors testing to include them in illegal, harmful or illegal actions with proximity jurisdictions;

- Sanctions for management companies involved in tax avoidance or authority to revoke the license for the business if the experts involved in the illegal schemes of tax planning and evasion;

- A possible financial liability for tax advisors engaged in unlawful practices;

- EU -Legislation to prevent abuse of the patent box regime;

- Guidelines to better define permissible transfer pricing activities;

- Improved Protection of employees;

- Suggestions Commission before the end of 2016 for total consolidation of the corporate tax base;

- A code conduct for banks, tax consultants, law and accounting firms;

- Global Register of assets owned by private individuals, companies and organizations such as trusts and foundations, to which the tax authorities will have full access;

Speaker Michael Theurer, who co-authored recommendations Gipp Kofod said: "Tax dumping at the expense of the general public and small and medium-sized businesses that are the backbone of our European economy as a system of fair tax Multinational companies also pay their share, and they need to do. that when they add value and make a profit.

Koefoed added: "With this report, Europe is stepping up to the plate to fight tax evasion and tax havens We set clear requirements for greater accountability, increased sanctions for tax havens, banks, tax advisers and companies, and we call for the expansion. European and international cooperation on this issue is very problematic."

Author: Olena Kutova

senior lawyer of the Finance Business Service company