EU denies existence of tax blacklist
The EU ambassador to Namibia says Namibia was unfairly identified as a tax haven in a British newspaper.
The European Union's ambassador to Namibia has categorically denied claims that Namibia has been labelled as a tax haven and is blacklisted.
Its identification as a possible tax haven and subsequent blacklisting has the implication that Namibia will not be eligible for funds from the 28 EU member countries. EU ambassador Jana Hybaskova said international media organisations had got hold of the wrong end of the stick and unfairly identified Namibia as a tax haven and placed it on a blacklist. According to an article in the British newspaper The Guardian this week, the EU named and shamed 17 countries, including Namibia, in its first “tax haven blacklist” and put a further 47 on notice in an attempt to clamp down on the estimated £506 billion lost to aggressive tax avoidance every year. The blacklist also includes South Korea, Mongolia, Panama, Trinidad and Tobago, Bahrain and the United Arab Emirates.
Explaining Namibia's appearance on the list of countries apparently blacklisted, Hybaskova said Namibia was encouraged to join the Global Forum on Transparency and Exchange of Information for Tax Purposes.
Further to that was an invitation to participate in an Organisation for Economic Co-operation and Development (OECD) multilateral convention on tax matters. She added that no clarity was provided about Namibia's export processing zones. Further to that, the Namibian tax authorities failed to meet a deadline that had been clearly communicated in a letter. Participation on Namibia's part would signal intent to stem the flow of illicit financial flows, according to Hybaskova. The EU was also not dictating to Namibia in any form but was merely asking Namibia and the 18 other countries identified to start a ratification process. Hybaskova said this would help lift the profile of Namibia's tax system as one that is transparent and modern.
“What we are asking Namibia to do is, we are encouraging, inviting Namibia to join a global forum on transparency. This is to help Namibia upgrade and modernise its tax system so that it is transparent. This deals with global financial standards,” she said.
Ratification would also ensure that Namibia would not be targeted by criminals to carry out any illegal activities linked to the flow of illicit financial flows, Hybaskova explained.
“This measure is being used to protect Namibia from being used in wrong ways. If Namibia is a part of the global forum, it will not be harmed. We hope Namibia will join. If Namibia is a part of the convention it cannot be accused wrongly of being a tax haven,” Hybaskova said. According to her, 92 countries underwent the screening process. Twenty went through and 72 were asked to address the inefficiencies identified. Namibia, or the other countries identified, were not just randomly picked by the EU.
“It is not that we are picking countries; 17 countries failed to respond,” said Hybaskova. Namibia's tax authorities would get a letter from the EU stating what would need to be corrected to ensure that it would not be harmed.
“Namibian authorities will receive a letter to inform them what needs to be done. If Namibia starts the ratification process, implement the measures recommended and explain what Export Processing Zones are, I am sure Namibia will be delisted,” Hybaskova said. She also rubbished claims that Namibia would not be getting any EU funding because it appeared on the so-called blacklist. Funding will only be withdrawn if Namibia did not agree to the ratification process.
“I state officially that no direct sanctions will apply in Namibia. If Namibia does not comply by June 2019, sanctions will be applied. Namibia has 18 months. It is a fair period of time. At the moment there is no negative element,” Hybaskova said.
EU authorities were also keen to assist Namibia.
“We offered immediate technical assistance to the ministry of finance. Let us be positive, we are here to help and lead you through the process. We are not at the end of the process, we are immediately ready to help the ministry of finance,” she said.
The ratification process was also not driven by the EU but by the OECD, which she said included countries as far flung as Australia, Japan and the United States of America.
“These are Organisation for Economic Cooperation and Development measures; these are not even EU measures. It is not the invention of the 28 EU ministers of finance,” she said.
Finance minister Calle Schlettwein said at a press briefing this week that miscommunication between Namibia and the EU led to the confusion. He said he was taken aback by the report that placed Namibia on a tax blacklist.
Its identification as a possible tax haven and subsequent blacklisting has the implication that Namibia will not be eligible for funds from the 28 EU member countries. EU ambassador Jana Hybaskova said international media organisations had got hold of the wrong end of the stick and unfairly identified Namibia as a tax haven and placed it on a blacklist. According to an article in the British newspaper The Guardian this week, the EU named and shamed 17 countries, including Namibia, in its first “tax haven blacklist” and put a further 47 on notice in an attempt to clamp down on the estimated £506 billion lost to aggressive tax avoidance every year. The blacklist also includes South Korea, Mongolia, Panama, Trinidad and Tobago, Bahrain and the United Arab Emirates.
Explaining Namibia's appearance on the list of countries apparently blacklisted, Hybaskova said Namibia was encouraged to join the Global Forum on Transparency and Exchange of Information for Tax Purposes.
Further to that was an invitation to participate in an Organisation for Economic Co-operation and Development (OECD) multilateral convention on tax matters. She added that no clarity was provided about Namibia's export processing zones. Further to that, the Namibian tax authorities failed to meet a deadline that had been clearly communicated in a letter. Participation on Namibia's part would signal intent to stem the flow of illicit financial flows, according to Hybaskova. The EU was also not dictating to Namibia in any form but was merely asking Namibia and the 18 other countries identified to start a ratification process. Hybaskova said this would help lift the profile of Namibia's tax system as one that is transparent and modern.
“What we are asking Namibia to do is, we are encouraging, inviting Namibia to join a global forum on transparency. This is to help Namibia upgrade and modernise its tax system so that it is transparent. This deals with global financial standards,” she said.
Ratification would also ensure that Namibia would not be targeted by criminals to carry out any illegal activities linked to the flow of illicit financial flows, Hybaskova explained.
“This measure is being used to protect Namibia from being used in wrong ways. If Namibia is a part of the global forum, it will not be harmed. We hope Namibia will join. If Namibia is a part of the convention it cannot be accused wrongly of being a tax haven,” Hybaskova said. According to her, 92 countries underwent the screening process. Twenty went through and 72 were asked to address the inefficiencies identified. Namibia, or the other countries identified, were not just randomly picked by the EU.
“It is not that we are picking countries; 17 countries failed to respond,” said Hybaskova. Namibia's tax authorities would get a letter from the EU stating what would need to be corrected to ensure that it would not be harmed.
“Namibian authorities will receive a letter to inform them what needs to be done. If Namibia starts the ratification process, implement the measures recommended and explain what Export Processing Zones are, I am sure Namibia will be delisted,” Hybaskova said. She also rubbished claims that Namibia would not be getting any EU funding because it appeared on the so-called blacklist. Funding will only be withdrawn if Namibia did not agree to the ratification process.
“I state officially that no direct sanctions will apply in Namibia. If Namibia does not comply by June 2019, sanctions will be applied. Namibia has 18 months. It is a fair period of time. At the moment there is no negative element,” Hybaskova said.
EU authorities were also keen to assist Namibia.
“We offered immediate technical assistance to the ministry of finance. Let us be positive, we are here to help and lead you through the process. We are not at the end of the process, we are immediately ready to help the ministry of finance,” she said.
The ratification process was also not driven by the EU but by the OECD, which she said included countries as far flung as Australia, Japan and the United States of America.
“These are Organisation for Economic Cooperation and Development measures; these are not even EU measures. It is not the invention of the 28 EU ministers of finance,” she said.
Finance minister Calle Schlettwein said at a press briefing this week that miscommunication between Namibia and the EU led to the confusion. He said he was taken aback by the report that placed Namibia on a tax blacklist.
Comments
Namibian Sun
No comments have been left on this article