EU removes several countries from tax haven lists
Finance Ministers of the European Union nodded the exclusion of United Arab Emirates, Switzerland, and Mauritius from the lists of tax havens.
Consists of 28 nations, the EU had formed a blacklist as well as a gray list of tax havens in December 2017. This was released after it was made known to the public the rampant avoidance schemes used by corporations and private businessmen to lower their tax bills.
Countries under the blacklist are strictly monitored and undergo scrutiny on transactions with the EU.
After reviewing the list, the EU ministers dropped the UAE from the blacklist. The Marshall Islands has been blotted out as well from the list. The UAE was also removed since adopting new rules on the offshore structure in September, according to the EU.
The EU, however, does not add countries that charge no tax or a tax haven to its blacklist. It asked the UAE instead to present rules that would allow only firms with a real economic activity there to be incorporated to reduce risks of tax dodging.