Times Of Swaziland: ESWATINI OUT OF EU TAX ‘GREY LIST’

ESWATINI OUT OF EU TAX ‘GREY LIST’
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BY MMELI MKHWANAZI AND KHULILE THWALA on 07/10/2021 08:04:00


MBABANE – Eswatini has been removed from the grey list by the European Union
(EU).
Eswatini along with Australia and Maldives were listed as being removed from the
grey list on Tuesday according to the evolution of the EU list of tax havens.
Other countries which were removed from the black list and added to the grey
list include Anguilla, Dominica and Seychelles. Added to the grey list were
Costa Rica, Hong Kong, Malaysia, North Macedonia, Qatar and Uruguay. This list
was adopted by the uropean Union Council on October 5, 2021. However, it was
stated that the list becomes official upon publication in the Official Journal.
The European Union tax haven blacklist, officially the EU list of
non-cooperative tax jurisdictions, is a tool of the EU that lists tax havens. It
is used by Member States to tackle external risks of tax abuse and unfair tax
competition. It was adopted for the first time in 2017 as a response to tax
avoidance in the EU, screening 92 countries.
Contacted
The Minister of Finance, Neal Rijkenburg was contacted to comment on the
removal, to which he said; “That is correct. We have been working with the EU
and The Organisation for Economic Co-operation and Development (OECD) in
ratifying agreements to move off the grey list.” It has been previously
reported that Eswatini was one of the few countries to appear on the European
Union’s grey list in terms of tax cooperation. The grey list was said to
comprise of countries that have made sufficient commitments to implement tax
good governance principles but are not yet fully compliant.
Previously, Botswana, Eswatini and Thailand were in the grey list, while
Morocco, Namibia and Saint Lucia have been promoted off all lists, having met
their commitments. The grey list, also called the ‘watch list’ includes
countries whose commitments in terms of tax compliance are considered
insufficient by the European Union, but their implementation is closely
monitored.
*The EU list of non-cooperative jurisdictions for tax purposes is a tool to
tackle:
*Tax fraud or evasion: illegal non-payment or under payment of tax.
*Tax avoidance: use of legal means to minimise tax liability.
*Money laundering: concealment of origins of illegally obtained money.
Not so long ago, in February; the country was one of the few countries to appear
on EU’s grey list. At the time, the country was enlisted alongside Botswana
and Thailand. First launched in 2017, the EU list of non-cooperative
jurisdictions for tax purposes is part of the EU’s external tax strategy and
aims to contribute to ongoing efforts to promote good tax governance in the
world.
The reason for the listing is because these countries have failed to engage in a
constructive dialogue with the EU on tax governance or have not met their
commitments to the EU regarding tax transparency, fair taxation, or
implementation of international tax standards. To avoid tax blacklisting,
countries must also receive a ‘largely compliant’ rating from the Global
Forum concerning the exchange of information on request.