On Friday 11 October 2019, it was reported that the United Arab Emirates (UAE) and Switzerland have been removed from the EU “grey list” of tax havens.
Following numerous tax scandals - including Panama Papers and LuxLeaks - twenty-eight EU finance ministers came together and agreed that “naming and shaming” countries who were shirking their tax responsibilities would ultimately result in both multinationals and individuals taking a more honest and stringent approach to monitoring and declaring their taxation affairs.
In October last year, Switzerland had approved a tax reform, but it was not implemented until after the elections. Owing to the changes made, Switzerland was subsequently removed from the grey list. The UAE was also recently found to be compliant with EU regulations as it has adopted new rules on offshore structures, according to the Irish Independent.
In spite of these changes, Oxfam’s EU advisor on tax, Chiara Putaturo, fears that such changes will not deter companies from tax evasion. He fears that “both countries will continue to offer sweet treats to tax-dodging companies”, and that the two countries will not continue to be compliant long-term with EU tax regulations.
The UAE and Switzerland can apply for European Aid or development funding if they wish, something that they could not do had their tax affairs reached “black list” status.
Don’t risk becoming “blacklisted”. Contact 3C Global today with any questions relating to tax compliance. Our expert team are always ready and willing to handle your queries.