Korea Placed on EU Blacklist of 17 Tax Havens

Korea Placed on EU Blacklist of 17 Tax Havens

South Korea, Barbados, Saint Lucia, Bahrain, Panama and the United Arab Emirates are among the countries named Tuesday as "non-cooperative jurisdictions for tax purposes".

Other measures that could be taken at a national level - but which will be at the discretion of each country - include withholding tax measures, non-deductibility of costs, and special documentation requirements.

The son of Founding President Sam Nujoma, Zackey Nujoma, and his relationship with convicted Italian mafioso Vito Palazzolo, and the son of his best friend, count Rocky Agusta, was also mentioned in the Panama Papers, along with Russian billionaire Rashid Sardarov, who owns vast tracts of land in Namibia.

The EU announced the list on Wednesday, though penalties still need to be confirmed.

In a blow to activists, states that charge no corporate tax are not automatically considered at risk of breaching European Union tax criteria.

Dozens more countries avoided censure by pledging to improve their tax rules, transparency and information sharing.

Other jurisdictions are understood to have been given leeway after suffering severe damage during hurricanes in the Caribbean earlier this year.

A further 47 jurisdictions were also included in a grey list.

"It's an important continuation of the recent years' clear breakthrough in the global fight against tax evasion". The papers made public some of the intricate ways the world's richest individuals and entities evade paying taxes using offshore havens.

The EU has struggled for more than a year to finalise the list, with smaller, low-tax EU nations such as Ireland, Malta and Luxembourg anxious that it may scare off multinationals.

European Union experts looked at 92 countries, before the list of non-cooperative entities was taken down to about 50.

BEPS is an agreement signed by some OECD member countries to tackle tax avoidance strategies that allow multinational companies to shift profits artificially to low or no-tax locations.

Crucially for the United Kingdom, the main list excludes a number of British Overseas Territories such as the Cayman Island and Bermuda that were on a previous European Union blacklist from June 2015. Some did so by promising to clean up their act.

Alex Cobham of Tax Justice Network, a campaign group, said at the time that the document marked a disheartening return to "the [OECD'S] old pattern of creating "tax haven" blacklists on the basis of criteria that are so weak as to be near enough meaningless, and then declaring success when the list is empty". "Tax dodging means less money available for healthcare, education and the fight against poverty".

WIC News understands that the list will be updated regularly.

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