EU blacklist Tax haven

Luigi

Building Trust
Entrepreneur
Let's see, it has been some months that news like this (EU takes first step on tax haven blacklist ) are being propagating on internet telling that EU wants to blacklist a some countries. Some news say that 20 countries will be blacklisted and others say that it will be up to 53.
My question is: What does it imply? Does it mean that EU won't trade anymore with these countries ? Or is it that Europeans won't be able to set up companies in these countries?
Does anyone know which countries are being blacklisted?
 

sialala

Building Trust
Entrepreneur
Q1 - You will be able to trade with companies from tax havens, but invoices from such companies will not be accepted to return the VAT and probably it does not be included in the reduction of income tax as purchase invoices - the costs of running a business

This is the current situation in Poland. We can't trade with tax havens. It will be same in other EU countries.


Q2 - You will be able to open a company in tax haven.
 

Macky

Active Member
I understand this list as more non-cooperative list of countries rather than tax havens.

Why ?
Because 3 biggest tax havens are missing on this EU list. USA + U.K. + Singapore.

If you want to be safe, better establish your next offshore in either USA or UK as they will never be sanctioned due to their diplomatic power :)
 

Luigi

Building Trust
Entrepreneur
Q1 - You will be able to trade with companies from tax havens, but invoices from such companies will not be accepted to return the VAT and probably it does not be included in the reduction of income tax as purchase invoices - the costs of running a business

This is the current situation in Poland. We can't trade with tax havens. It will be same in other EU countries.


Q2 - You will be able to open a company in tax haven.
I cannot understand it, the if the VAT of a tax haven is zero (for example) or very low, what's the point of this black list?
 

Emily Rimlins

Building Trust
Entrepreneur
The point of this is exactly how "they" wanted it. "order out of chaos"

1. Create a chaotic experience for the people (rich hiding their money whilst us normal girls and boys pay our tax)
2. Establish a solution (blacklist the countries that are offshore so that us normal girls and boys cannot make full use)

You should probably know that there will be at least 3 "legal" loopholes for the designers of the sanctions to offer their rich counterparts.
However, let me explain the implications:

1. There are no real implications. It just means that it will be harder to obtain EU bank accounts for offshore companies. Most likely Poland and Cyprus will be OK as they already have such a list but still assist with bank accounts and banking in general.
2. Jurisdictions like Marshall Islands will be highlighted for FX/Binary Brokers who use this jurisdiction as a quick way to get in business on a "pump and dump" scheme.
3. EU citizens using EU banks under a "tax haven" jurisdiction will face difficulties and will be subject to deeper checks.

Thanks!

Emily
 

Luigi

Building Trust
Entrepreneur
The point of this is exactly how "they" wanted it. "order out of chaos"

1. Create a chaotic experience for the people (rich hiding their money whilst us normal girls and boys pay our tax)
2. Establish a solution (blacklist the countries that are offshore so that us normal girls and boys cannot make full use)

You should probably know that there will be at least 3 "legal" loopholes for the designers of the sanctions to offer their rich counterparts.
However, let me explain the implications:

1. There are no real implications. It just means that it will be harder to obtain EU bank accounts for offshore companies. Most likely Poland and Cyprus will be OK as they already have such a list but still assist with bank accounts and banking in general.
2. Jurisdictions like Marshall Islands will be highlighted for FX/Binary Brokers who use this jurisdiction as a quick way to get in business on a "pump and dump" scheme.
3. EU citizens using EU banks under a "tax haven" jurisdiction will face difficulties and will be subject to deeper checks.

Thanks!

Emily
Thanks a lot, now it makes more sense.
 

W4rhol

Building Trust
Entrepreneur
The point of this is exactly how "they" wanted it. "order out of chaos"

3. EU citizens using EU banks under a "tax haven" jurisdiction will face difficulties and will be subject to deeper checks.

Emily
Only if the EU people have their tax residence inside the European Union. If you have your tax residency outside EU, you will have no problem.
 

DirtyDexter

New Member
Q1 - You will be able to trade with companies from tax havens, but invoices from such companies will not be accepted to return the VAT and probably it does not be included in the reduction of income tax as purchase invoices - the costs of running a business

This is the current situation in Poland. We can't trade with tax havens. It will be same in other EU countries.


Q2 - You will be able to open a company in tax haven.
what about two offshores, one in real tax heaven, second in the usa for example (LLC)

and you as director, or small shareholder

bank account annywhere in europe for LLC is not a problem
because LLC is not tax heaven in Europe... :)
 

KJK

Building Trust
Entrepreneur
So these countries were added to the blacklist recently:
Aruba, Barbados, Belize, Bermuda, Dominica, Fiji, Marshall Islands, Oman, Vanuatu and the U.A.E

Bloomberg - Are you a robot?

I don't understand the bureacrats much, I think last year they actually removed some of these countries only to re-add them again?

I find it interesting especially in the case of Oman and U.A.E. - yes, they don't tax their citizens and residents with 50% like Belgium where these tax-paid bureaucrats are based. However they aren't exactly a banana republic or a drug lord paradise.

What consequences can the blacklist have?
 

xzars

Building Trust
Entrepreneur
What consequences can the blacklist have?

Reduce the credibility of the EU...

In one tax forum, the finance minister of Panama asked if the blacklist is only for small countries. The jackass of OECD and other high tax advocates in the panel could not give a good answer.
 
Top