As a result of widespread use of offshore schemes in business, many countries of the world have faced a serious problem: huge capital began to pass around the state budget. In order to protect the economic system, the states make up the lists of offshore jurisdictions - the so-called âblack listsâ of offshores. The countries and territories included in this list are subject to close monitoring and a special system of taxation. As a rule, they are characterized by the availability of fixed tax benefits for non-resident companies up to the complete exemption from taxation of all profits, a high level of confidentiality of information with respect to business owners, the lack of requirements for the submission of accounting and financial reporting, as well as insufficient cooperation with other countries in relation to exchange of information.
The lists of offshores of different countries are different, but they often include a âtraditionalâ block of countries, generally accepted for all state lists. Among such countries are: Dominica, Panama, Seychelles, Belize and others.
The Ukrainian current legislation has two lists of unreliable states:
The list of offshore...
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 JÃ¼ri 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 European Union excluded 8 countries and territories from the âblack listâ 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 exÑlusion 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 âblack listâ 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...
The European Union is discussing the possible exclusion of eight countries from the âblack listâ 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 âblack listâ 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...
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;