EU unfair - Schlettwein
Finance minister Calle Schlettwein has maintained his stance that Namibia is not a tax haven, as suggested by the latest list published by the European Union.
Schlettwein was speaking at a meeting with his ministry's staff yesterday. According to him, Namibia is being unfairly labelled as a tax haven while it is well-known that Namibia's tax rates are high in the Southern African Development Community.
“There were some unfortunate incidents last year. The EU decided that Namibia is a tax haven…Namibia is not a tax haven. Tax havens are those countries that attract capital with the promise that there will be no tax paid on the capital invested. We are not doing that,” said Schlettwein.
Namibia charged high tax rates, quite the opposite of what tax havens were doing, Schlettwein said
“In fact, we are judged as one of the jurisdictions in our region with the highest tax rates. We do not fit the definition of a tax haven.”
According to Schlettwein, the list negatively affected Namibia's standing in the international community.
“Significant reputational damage has been caused by the listing,” he said. Following a visit by a Namibian delegation to the EU's headquarters in Brussels, Belgium, Schlettwein said Namibia would not unnecessarily give in to demands in order to be removed from the list.
“It is good to engage and I am sure we will reach a positive outcome without budging to unnecessary requests. Let us see what is coming of the engagements. We must also see how de-listing Namibia from the list of tax havens can be done as soon as possible,” said Schlettwein.
The EU's mission head to Namibia, Jana Hybaskova, also confirmed that engagements were progressing and that a Namibian delegation had returned from Brussels recently.
“There was a Namibian technical mission consulting the issue last week in Brussels; there is a progress on a technical level,” said Hybaskova.
When asked once again what had motivated the EU to place Namibia on the list of tax havens, Hybaskova said: “Namibia is not a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes; has not signed and ratified the Organisation for Economic Co-operation and Development Multilateral Convention on Mutual Administrative Assistance as amended; does not apply the BEPS minimum standards; and did not commit to addressing these issues by 31 December 2019.”
She was further of the opinion that Namibia does in fact have a preferential tax regime.
“Furthermore, Namibia has harmful preferential tax regimes and did not commit to amending or abolishing them by 31 December 2018. The EU in January removed eight countries from its tax haven blacklist after they took measures to remedy EU concerns about their approaches to tax dodging.
Panama, Barbados and Grenada were among those removed from the list, which now numbers only nine nations, amid claims by campaigners that ministers were “undermining” the process.
The three countries, as well as South Korea, Macau, Mongolia, Tunisia and the UAE, will now move onto a “grey list” of countries that the EU has concerns about but which it thinks are in the process of improving their approach.
The decision to remove the countries was made by EU finance ministers in Brussels when they met for their monthly Ecofin meeting. The ministers agreed to the move after a recommendation by EU tax experts in the Code of Conduct Group.
Vladislav Goranov, finance minister of Bulgaria, which holds the rotating EU presidency, said: “Jurisdictions around the world have worked hard to make commitments to reform their tax policies. Our aim is to promote good tax governance globally.”
The EU blacklist was set up last December after several revelations of widespread tax-avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted jurisdictions could face reputational damage and stricter controls on their financial transactions with the EU, although no sanctions have been agreed by EU states yet.
Those who are on the 'grey list' could be moved to the blacklist if they do not honour their commitments.
OGONE TLHAGE
Schlettwein was speaking at a meeting with his ministry's staff yesterday. According to him, Namibia is being unfairly labelled as a tax haven while it is well-known that Namibia's tax rates are high in the Southern African Development Community.
“There were some unfortunate incidents last year. The EU decided that Namibia is a tax haven…Namibia is not a tax haven. Tax havens are those countries that attract capital with the promise that there will be no tax paid on the capital invested. We are not doing that,” said Schlettwein.
Namibia charged high tax rates, quite the opposite of what tax havens were doing, Schlettwein said
“In fact, we are judged as one of the jurisdictions in our region with the highest tax rates. We do not fit the definition of a tax haven.”
According to Schlettwein, the list negatively affected Namibia's standing in the international community.
“Significant reputational damage has been caused by the listing,” he said. Following a visit by a Namibian delegation to the EU's headquarters in Brussels, Belgium, Schlettwein said Namibia would not unnecessarily give in to demands in order to be removed from the list.
“It is good to engage and I am sure we will reach a positive outcome without budging to unnecessary requests. Let us see what is coming of the engagements. We must also see how de-listing Namibia from the list of tax havens can be done as soon as possible,” said Schlettwein.
The EU's mission head to Namibia, Jana Hybaskova, also confirmed that engagements were progressing and that a Namibian delegation had returned from Brussels recently.
“There was a Namibian technical mission consulting the issue last week in Brussels; there is a progress on a technical level,” said Hybaskova.
When asked once again what had motivated the EU to place Namibia on the list of tax havens, Hybaskova said: “Namibia is not a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes; has not signed and ratified the Organisation for Economic Co-operation and Development Multilateral Convention on Mutual Administrative Assistance as amended; does not apply the BEPS minimum standards; and did not commit to addressing these issues by 31 December 2019.”
She was further of the opinion that Namibia does in fact have a preferential tax regime.
“Furthermore, Namibia has harmful preferential tax regimes and did not commit to amending or abolishing them by 31 December 2018. The EU in January removed eight countries from its tax haven blacklist after they took measures to remedy EU concerns about their approaches to tax dodging.
Panama, Barbados and Grenada were among those removed from the list, which now numbers only nine nations, amid claims by campaigners that ministers were “undermining” the process.
The three countries, as well as South Korea, Macau, Mongolia, Tunisia and the UAE, will now move onto a “grey list” of countries that the EU has concerns about but which it thinks are in the process of improving their approach.
The decision to remove the countries was made by EU finance ministers in Brussels when they met for their monthly Ecofin meeting. The ministers agreed to the move after a recommendation by EU tax experts in the Code of Conduct Group.
Vladislav Goranov, finance minister of Bulgaria, which holds the rotating EU presidency, said: “Jurisdictions around the world have worked hard to make commitments to reform their tax policies. Our aim is to promote good tax governance globally.”
The EU blacklist was set up last December after several revelations of widespread tax-avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted jurisdictions could face reputational damage and stricter controls on their financial transactions with the EU, although no sanctions have been agreed by EU states yet.
Those who are on the 'grey list' could be moved to the blacklist if they do not honour their commitments.
OGONE TLHAGE
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