According to the choice accepted by the Ministers of Economy and Finance, the checklist of tax havens up to date by the European Union consists of sixteen territories:
- the 4 added Russia, Costa Rica, the British Virgin Islands, and the Marshall Islands;
- Panama, American Samoa, Fiji, Guam, Palau, Trinidad and Tobago, Samoa, the US Virgin Islands, Vanuatu, the Bahamas, Anguilla, and the Turks and Caicos Islands, which had been already on the checklist.
The checklist, up to date each six months, consists of nations that don’t adjust to EU requirements on tax transparency, tax equity, or the implementation of worldwide guidelines to stop the erosion of tax bases or revenue shifting and don’t take steps to deal with these points.
COSTA RICA’S RESPONSE
The Costa Rican presidential web site mentioned in a press launch the day gone by that the measure was “because of the failure to adjust to the dedication made by the earlier authorities to reform the tax system to tax passive offshore earnings by December 31, 2022.
According to European Union directives, passive earnings earned by an individual or firm overseas needs to be taxed in Costa Rica to keep away from “unfair competition” between nations’ tax techniques and to make sure that there’s tax-free earnings,” the Costa Rican authorities added.
“Although it cannot be ensured that the sanctions of all EU member states will be avoided, the government (of Rodrigo) Chaves Robles is coordinating actions to ensure that the impact on investment is minimized,” the communiqué concluded.