Algirdas Semeta, the EU Tax Commissioner has been vocal about cracking down on tax evasion and creating a business friendly and equitable tax environment throughout Europe. According to Mr. Semeta: “We must create a fair tax environment. One where it pays to work and where labour and capital, across all sectors of the economy, would contribute a fair share to financing our European social and Economic model.”
Part of Mr. Semeta’s goals is to create pressure on tax havens and to close loopholes within certain countries which allow some companies unfair tax advantages. He has even gone so far as to indicate that some countries would be blacklisted if they did not make progressive changes to their tax systems and abide by stricter international standards.
Recent developments indicate that Mr. Semeta’s ideas are slowly making progress. The Cayman Islands are in the process of creating a database which discloses directors, managers and beneficiaries of hedge funds registered in the Islands. Switzerland has put into effect a new tax assistance law which will allow countries to request banking and other information on nationals suspected of tax evasion by using the Swiss banking system. Also, Swiss banks are now demanding their clients to sign a statement that their taxes are being settled in the client’s country of residency. Hong Kong is also looking into changes that will prevent the abuse of Hong Kong’s lack of withholding tax on outgoing dividends. These changes are in part due to the pressure being applied by the EU and the USA.
Source: http://www.eltoma-cyprus.com/
