Tax Havens Over
Global Forum is chasing the Tax Havens Jurisdictions for Tax Matters. Many Countries have already joined the plan. Global Forum is the biggest Group in the World for Tax Purposes
TAX HAVENS UNDER PRESSURE
Tax Concert By The Mighty–Tax Havens Over: The Global Forum on Transparency and Exchange of Information for Tax Purposes is the biggest group in the world. At the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, more countries and offshore jurisdictions agreed to cooperate for the exchange of tax information.
One of the main topics of this convention was to put in motion a new strategy regarding the exchange of tax information and the tax authorities of the world to proceed to a multilateral collaboration and make the exchange of tax information automatically instead of on request. A multilateral automatic exchange model is being developed by the OECD and its G20 partners. This convention is considered to be the perfect “tool” to apply fast and effectively the automatic exchange in cooperation with a significant number of partners.
Among other things, the convention in relation to the automatic exchange is also offering simultaneous tax investigations and assistance in tax collection. The convention obeys and respects the national tax laws, as well as the rights of the taxpayers since it protects the confidentiality of the provided information.
Many countries already agreed to cooperate and approved the automatic exchange of tax information i.e. the Slovak Republic, Canada, South Africa, New Zealand etc, whilst other such as the Philippines and the Seychelles signed letters declaring their plan to sign the Convention in due time.
Relative information worth mentioning is the fact that the U.K. announced the extension of its regional scope of the Convention with a goal to include the jurisdictions of Bermuda, Montserrat, Anguilla, Turks & Caicos, the Isle of Man, Cayman Islands and the British Virgin Islands. It has been noticed that since the Fifth Global Forum meeting in October 2012, the countries and jurisdictions participating in the tax information exchange is increasing very fast and quickly. Up until now the Convention was signed by 63 countries, 4 countries signed letters declaring their intention to sign the Convention and 13 other jurisdictions are already covered under the territorial extension.
The big of the Planet are losing billions of Taxes and Bank deposits to the so called Tax Havens i.e. countries with 0% Tax Rates and they kind of…don’t like it. Corporate Tax Rates are 0% in many countries like Seychelles, BVI, Panama and many more. Our view is that soon Tax Havens will be much less attractive if they automatically give information to everybody about the offshore companies in the Company Registers and they eventually pay Corporate Tax and personal income tax in their countries.
In contrast with these developments Cyprus is a country with a firm stable Tax System and Offshore Tax Regime status without being a Tax Haven. Corporate Tax in Cyprus is only 12,5% and there is no prediction of it being increased in the future. So a Cyprus Company has the privilege as a very strong Tax tool to avail itself in the EU’s lowest possible Corporate Tax Rates. A Cyprus Company is a go for all intends and purposes endowed with 43 DTTs making it a must for all kinds of operations.