The European Union has included Russia in the list of tax havens

The European Union (EU) has included Russia in the “grey list” of tax jurisdictions – countries that, in its opinion, do not fully comply with international tax standards. The list also includes the British Virgin Islands, the Marshall Islands and Costa Rica. In total, there are 16 positions on the list, mostly offshore.

According to statement Council of the EU, he “regrets that these jurisdictions do not cooperate in tax matters, and invites them to improve their legal framework to address the problems identified.” According to the Council, Russia has not fulfilled its obligation to “eliminate the harmful aspects of the special regime for international holding companies.” “In addition, the dialogue with Russia on issues related to taxation has reached a dead end after the start of Russian aggression against Ukraine,” the organization added.

The head of the Swedish Ministry of Finance, Elisabeth Svantesson, called on all these countries to “improve their legal framework and work to comply with international standards in the field of taxation.” At the same time, North Macedonia, Barbados, Jamaica and Uruguay were excluded from the “grey list” of tax jurisdictions, as they “successfully fulfilled their obligations,” the minister added.

Currently, the list of tax haven countries includes:

• American Samoa (US territory in the South Pacific, part of the Samoa archipelago),
• Anguilla (British island territory in the eastern Caribbean),
• Bahamas,
• British Virgin Islands,
• Costa Rica,
• Fiji,
• Guam (an island in the Western Pacific Ocean, has the status of a US territory),
• Marshall Islands,
• Palau (an archipelago in the Western Pacific),
• Panama,
• Russia,
• Samoa,
• Trinidad and Tobago (island nation in the southern Caribbean),
• Turks and Caicos Islands (British territory in the Atlantic Ocean),
• US Virgin Islands,
• Vanuatu (island state in the South Pacific).

The fact that the EU will add Russia to the “grey list” of tax havens, informed EUobserver in February 2022. In the case of Russia, the dissatisfaction of the EU was caused by special administrative regions (the so-called “Russian offshores”). Transactions with listed countries will be subject to special monitoring. According to Vedomosti, the Russian government was already discussing the possible consequences of this decision.

Laura Keffer