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International Internet Magazine. Baltic States news & analytics Thursday, 23.09.2021, 18:57

Estonia against adding UAE to tax haven list

BC, Tallinn, 12.03.2019.Print version
A draft list of tax havens prepared by European Union tax experts included the British overseas territory of Bermuda, the Dutch Caribbean island of Aruba and the United Arab Emirates (UAE), a financial center for the Middle East, but Italy and Estonia are blocking the inclusion of the latter, a document seen by Reuters shows, writes LETA/BNS.

EU finance ministers are set to add Bermuda and Aruba to the bloc's blacklist of tax havens on Tuesday, Reuters reported citing EU documents and officials.

At a closed-door meeting on Friday, the Italian representative said the UAE should be given until the end of this year to change its rules and comply with EU tax standards, a document shows. Italy said the UAE -- a federation of emirates, which include the top financial hubs of Dubai and Abu Dhabi -- had "constitutional constraints" that justified its delay in changing rules.

The Netherlands, however, would veto the listing of its overseas territory of Aruba if the UAE was removed from the draft list, according to the document and some European officials.

A final decision will be made by finance ministers at a meeting on Tuesday.

The EU blacklist originally comprised 17 jurisdictions, but shrank to five after most listed states committed to change their tax rules. The list currently comprises Samoa, Trinidad and Tobago, and three US territories: American Samoa, Guam, and the US Virgin Islands.

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