Korea Placed on EU Blacklist of 17 Tax Havens

John Riva

John Riva

The papers made public some of the intricate ways the world's richest individuals and entities evade paying taxes using offshore havens.

Another 47 jurisdictions have been included on a so-called "grey" list of those deemed not now compliant with European Union standards but which have committed to changing their tax rules.

The EU proposed new rules past year that would force multinational companies that operate in the bloc to reveal details about their operations in tax havens and summarize how much tax they pay in countries around the world.

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

The news comes as the European Union moves to clamp down on tax avoidance by non-compliant countries and discourage the use of shell structures overseas.

The EU further claims countries on its list have not committed to implement the OECD's Base Erosion and Profit Shifting minimum standards, nor did they comply with worldwide standards on automatic exchange of information and information exchange on request.

"The result of the flawed blacklisting process is a politically led list, that includes only the economically weak and politically unconnected", he added.

Though being hailed as a vital "first step", the failure of the member states to come to an agreement on any sanctions for those blacklisted provoked the European commissioner for economic and financial affairs, Pierre Moscovici, to openly admit it was as yet "an insufficient response". Countries' inclusion is based on whether a state gives preferential treatment to companies enabling them to move profits to avoid charges. There were about 20 countries that are thought to facilitate tax evasion and November's Paradise Papers leak gave the initiative a new momentum. That means they promote unfair tax practices, or don't share important financial information with the EU. Several other hurricane-impacted Caribbean islands have been put on probation and their cases will be addressed in February.

British officials dismiss such accusations, saying London is at the forefront of tackling avoidance and ensuring tax transparency.

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