The European Union published its black list of tax havens. It
consists of 17 countries the EU believes help multinationals and rich
people avoid the tax authorities. The Netherlands does not appear on the
list - no EU countries do. But Aruba and Curacao, which form part of
the Kingdom of the Netherlands, were placed on a "gray list" - they have
two years to implement promised improvements, or they'll be
blacklisted, the Volkskrant reports.
This blacklist was compiled following journalistic revelations about
large scale tax evasion by multinationals, entrepreneurs, politicians
and others from documents like the Panama papers, the Paradise papers,
Lux leaks and the like. After over a year of negotiations, the EU member
states agreed to put 17 countries on the blacklist, including Panama,
the United Arab Emirates, the Marshall Islands and Grenada. The
countries on this EU blacklist can be penalized with trade barriers,
stricter controls, loss of EU subsidies and additional tax levies,
according to the newspaper.
In addition to the blacklist, the Member States also agreed to put 47
countries on a gray list. These countries promised enough improvements
not to be blacklisted immediately. They have a maximum of 2 years to
implement these improvements, or they will be moved to the blacklist. In
addition to Aruba and Curacao, these countries also include Hon Kong,
Taiwan, Turkey, the Cayman Islands, the Seychelles, Guernsey and
Andorra.
European Commissioner Pierre Moscovici of Economic and Financial
Affairs emphasized that these lists were compiled by the Member States
and not by the European Commission. It is up to the Member States
themselves how they handle their taxes, and the Member States can decide
whether to impose sanctions against the countries on the black list.
The Commission tried to impose an obligation to do so, but it failed.
The Socialists and Greens in the European Parliament called the list
weak, according to the newspaper. The Greens believe that Member States
like the Netherlands, Luxembourg, Great Britain and Cyprus should also
be on the blacklist. "It is sad that the member states have shown so
little courage and responsibility", PvdA European Parliamentarian Paul
Tang said to the Volkskrant. He added that the cry of indignation about
tax evasion was smothered in the back rooms of Brussels.
Last week development company Oxfam Novib also said that if the
criteria for non-EU countries were also applied to EU member states, the
. The company referred specifically to the Netherlands' sweetheart tax deal with American coffee giant Starbucks.
Last year the Netherlands was reprimanded by the European Commission
for allowing Starbucks to avoid almost 26 million euros in taxes through
the Netherlands. Despite the Dutch government's objections, the
Read more: EU releases tax haven blacklist; Netherlands not on it | NL Times
