The United States appeared on the EU draft list of countries perceived as potential tax havens according to the list obtained by Handelsblatt Global. To make the final list of non-cooperative jurisdictions by the end of 2017, American and other tax authorities will be contacted this week by the European Union to clarify certain taxation policy.
A common EU system for assessing, screening and listing third tax jurisdictions, which is part of 2016 anti-tax avoidance package, allows to identify those that are having a particular role in tax avoidance and tax evasion. A three-step process is defined in the external strategy communication which consists of:
As countries are categorized based on three risk factors – transparency of the tax system, tax advantages for corporations and a zero-percent income tax, the United States fulfils the first two risk factors. The EU now sends letter to 90 jurisdictions, including that of the Trump administration, to clarify their stance on certain policy. Handelsblatt elaborated on the recent clashes between the US and the EU administrations and possibility that the US would end up on the black list of tax havens. The European Union will prepare a definitive list of tax havens by the end of 2017.
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