EU pushes for tax blacklist after Paradise Papers leak

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The European Union finance ministers discussed the tax haven blacklist in Brussels on Tuesday in their monthly meeting with the intention to approve the list in December.

This move came after new revelations from the "Paradise Papers" showed how major firms and celebrities have escaped paying taxes, from heads of state to sports stars. (see related story: From heads of state to sports stars – tax secrets revealed)

"Today we heard an overview of the preparations of the list of third countries that do not cooperate with us sufficiently on tax issues," said Toomas Toniste, Estonian finance minister, who chaired Tuesday's meeting as part of Estonia's EU presidency.

"Our intention is to approve this list in December," he added.

European Commission vice-president Valdis Dombrovskis, responsible for the euro and social dialogue, backed his idea.

"We also discussed the EU blacklist for non-cooperative tax jurisdictions. The work on this list is ongoing as planned and we hope for an agreement on this list at the December ECOFIN," Dombrovskis said.

He also called for sanctions against tax evasion, saying "we also call for an agreement on counter-measures against those jurisdictions which will end up on the list."

According to AFP, US sportswear giant Nike used a loophole in Dutch fiscal law to reduce its tax rate in Europe to just two percent, according to reporting Monday on the leaked Paradise Papers.

A picture taken on November 7, 2017 shows the headquarters of Nike Europe in Hilversumm, Netherlands. /VCG photo‍

The report on Nike shows the sportswear manufacturer managed to bring its tax on profits down to two percent from the 25 percent average for European companies.

Source(s): AFP ,Xinhua News Agency