EU Planning New Tax List : Common EU list of non-cooperative tax jurisdictions under construction. European Commission planning new tax list: The European commission plans to create a common list within the European Union containing of non-cooperative jurisdictions. The Commission will assess which countries fall under this category which will involve a screening process based on a scoreboard. This will involve a three stage process for establishing a common list aiming to tackle tax avoidance and evasion which will carry more weight than previous national measures. The new process being part of Europe’s general campaign to tackle tax evasion and avoidance was endorsed by the EU Finance Ministers. This plan has also been supported by the European parliament and the aim is for the final list to be published by end of 2017 aiming to be used as a tool against third countries that refuse to comply with taxation rules. The External Strategy for effective taxation sets out the process for listing based on three steps:
EU Planning New Tax List : The Listing process:
A neutral scoreboard of indicators has been produced which includes EU economic ties, stability and financial activity factor in order to assist in determining each third county’s tax system risk level.
Following the first stage it is then decided which countries should be assessed formally through the screening process by the EU. It must be noted that countries with high scores do not necessarily represent a threat to the European tax system, but rather the aim is to narrow down the focus for the screening process.Screening will be on countries’ good tax governance standards which will be conducted by the Commission and the code of conduct group.
The EU will work closely with the OECD during the listing process taking into account transparency standards as assessed by the O.E.C.D. Following the completion of the screening process, third countries that do not cooperate with EU good tax governance will be inserted on the list and be used as a tool dealing with such countries. The common EU list is intended as a “last resort” option. It will be a tool to deal with third countries that refuse to respect tax good governance principles, when all other attempts to engage with these countries have failed.
If you need to read some material about the Cyprus Tax Rates and find out for yourself the great benefits and tax advantages of doing your business through Cyprus then follow this link: Cyprus Tax Rates where you will find useful material facts and figures about the Cyprus Tax Rates.
Get in Touch