The list of "tax havens" is reduced

Tendency towards reducing the list of "tax havens" is observed in the European Union

Tax havens are states or territories, the tax systems of which are more profitable compared to other systems. Low taxation rate, privileges, level of confidentiality are obvious advantages of such states. There is the concentration of foreign capital in these areas.

The EU policy is aimed at combating this kind of financial systems through sanctions. 

In December 2017, there was the publication of the “tax havens” list, which included 17 countries, the authorities of which are not properly engaged in combating tax evasion and their legislative system does not meet the standards of the European Union.

Emergence of this list is caused by the identification of large-scale schemes, frauds and abuses relating to tax evasion on the part of large corporations and individuals who want to conceal their income and reduce tax costs.

As of today, the list consists of five countries, namely the United States — Guam, Virgin Islands, American Samoa; Trinidad and Tobago, as well as Samoa. The island of Namibia was crossed out of this list.

At the same time, a number of finance ministers took a critical look at such a short-listing. They state that in addition to these countries, there is a number of others with a similar tax system that are not included in the list. This year the list has been revised several times.

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