• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

OECD: Panama and Uruguay to improve ‘harmful’ tax practices

OECD: Panama and Uruguay to improve ‘harmful’ tax practices
  • Eugene Costello
  • 25 October 2017
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Panama and Uruguay have been listed by the OECD as being among 20 countries with “harmful tax practices”, though unlike others on the list the organisation accepts that their tax regimes are “in the process of being amended”.

The full list of 20 identifies countries where tax laws are thought to constitute “harmful preferential regimes”, which facilitate tax avoidance by multinationals, in the process adding to the tax base erosion of other countries.

Related articles

  • Barbados minister foresees OECD compliance by year-end
  • Mauritius commits to avoiding ‘harmful’ tax features
  • Jersey and IoM ministers express satisfaction with latest OECD report
  • The Bahamas: Clearly Focused

The report, Harmful Tax Practices – 2017 Progress Report on Preferential Regimes, was based on a review of 164 tax regimes against standards set as part of the 2015 OECD/G20 base erosion profit shifting (BEPS) plan agreements.

The aim of these standards is to “counter harmful tax practices more effectively, taking into account transparency and substance”, and cover tax incentives that apply to mobile business income.

While the report lists Uruguay and Panama as having four different preferential tax regimes, it lists those regimes as ““in the process of being amended”.

That’s because, by being BEPS Inclusive Framework members, the two jurisdictions  have agreed to adjust their tax laws to meet the agreed standards as soon as possible.

Neighbouring Colombia, having previously been considered to have a harmful tax regime, has now abolished that regime, the report noted.

Harmful tax practices ‘particularly aggressive’

Martin Kreienbaum, chair of the Inclusive Framework on BEPS, pictured above, described harmful tax practices as a “particularly aggressive way” through which jurisdictions can encourage the erosion of other jurisdictions’ tax bases.

He said that it is critical that they be addressed, to “protect the level playing field and prevent a race to the bottom”.

He claimed that the Inclusive Framework’s efforts are creatingin real changes to these tax incentives, making it harder for multinationals “to artificially shift their profits around the world for a tax advantage”.

France and Italy fail to commit to reform

The full list of countries listed in the report comprise Spain, Switzerland, Andorra, Barbados, Belize, Botswana, Costa Rica, Curaçao, France, Hong Kong (China), Macau (China), Italy, Mauritius, Malaysia, Panama, San Marino, Seychelles, Thailand, Trinidad and Tobago, and Uruguay.

All of the countries listed have told the OECD that they plan to reform, amend or remove the contentious regimes with the exception of France and Italy.

The OECD has encouraged countries that have been listed to amend their laws as soon as possible, and will continue to review them.

Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, said: “The jurisdictions concerned are already working to address the harmful tax practices in their preferential regimes. In fact, countries have already changed, or are changing, almost 95 percent of the regimes where action is needed.”

 

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • Latin America
  • OECD
  • Panama
  • Uruguay

More on Regulation

FCA hands £3.4m back to unauthorised investment scheme victims

  • Regulation
  • 24 February 2021
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions

  • Regulation
  • 23 February 2021
Jersey regulator fines three firms for breaching money laundering rules

  • Regulation
  • 17 February 2021
FCA partners with Jersey regulator to probe new Woodford venture

  • Regulation
  • 17 February 2021
CISI launches anti-money laundering partnership with Qatari regulator

  • Regulation
  • 16 February 2021
Back to Top

Most read

HSBC Singapore CEO to leave for Saudi British Bank
HSBC Singapore CEO to leave for Saudi British Bank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading