European Union (EU) removes Maldives from the list of ‘non-cooperative tax jurisdictions’ after the island nation made several positive improvements in the tax system.
Earlier, the EU had blacklisted 17 countries as ‘non-cooperative tax jurisdictions’ in their report; “A Fair and Efficient Cooperative Tax System in the European Union” issued on 05 December 2017.
The list comprises of countries with “fraudulent tax systems” and is compiled by EU to discourage “rules and regulations that pave ways for large businesses and the rich to evade or avoid tax.”
Moreover, Maldives was removed from the ‘blacklist’ over numerous efforts made by the Maldives Inland Revenue Authority (MIRA) and the Government of Maldives towards tax reformation.
Meanwhile, the Maldives government pushed for additional measures which are currently deliberated towards implementation under the guidance of EU that will help the country to become a competitive jurisdiction in terms of taxation.
Furthermore, the island nation has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes led by the Organization for Economic Corporation and Development (OECD), which aims to improve the “global contribution and enhance the tax system.”
In addition to this, Maldives President declared that the island nation will become a member country of the OECD’s “inclusive framework” which is initiated by the G20 member countries.
Regarding the efforts of the tax reformation, Minister of Finance assured the EU on the government’s full support to the tax authority in its efforts to strive against tax evaders on a global level.
Moreover, the minister confirms support and encouragement of the Maldives’ involvement in EU’s initiative towards strengthening global tax system.