The European Union added Russia to the blacklist of tax havens on Tuesday, February 14, a measure that is above all symbolic, as this country is already under economic sanctions linked to the invasion of Ukraine.
Besides Russia, the British Virgin Islands, Costa Rica, the Marshall Islands have also been included in this list which now includes sixteen entities.
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The Council of the EU has « reviewed the Russian legislation adopted in 2022 according to the criteria of good tax governance [de l’UE] and found that Russia had not fulfilled its commitment to remedy the harmful aspects of a special regime for international holding companies”according to a press release.
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“Furthermore, the dialogue with Russia on tax-related issues has come to a halt as a result of Russian aggression against Ukraine”adds this institution.
“A strong political signal”
The inclusion of a country on this list makes it more difficult to trade with companies located there, explained a spokeswoman for the Council. But this list is singled out for its ineffectiveness by the NGO Oxfam.
German MEP Markus Ferber (EPP, right) estimated that “Adding Russia to the list is a strong political signal but will have limited practical consequences”.
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“If EU finance ministers really wanted to tackle tax havens, they would design a set of painful penalties to accompany listing”he added.
Russia is already targeted by a series of sanctions from the EU, which has also decreed asset freezes and travel bans in the EU against more than 1,300 people and 171 entities.
A joke “
“We call on all countries on the list to improve their legal frameworks and strive to comply with international tax standards”said Swedish Finance Minister Elisabeth Svantesson, whose country holds the six-monthly Presidency of the Council of the EU.
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She has at the same time “bliss” North Macedonia, Barbados, Jamaica and Uruguay, “who have succeeded in fulfilling their commitments” and could be removed from a “grey list”.
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The NGO Oxfam called the blacklist a “joke”.
“Not only has the EU delisted countries with zero corporate tax rates, such as Bermuda and the Cayman Islands, but it is ignoring EU tax havens, such as Luxembourg”denounced Chiara Putaturo, of this NGO, in a press release.