EU May Class UK as Tax Haven

November 29, 2017 Taxation in UK

UK tax havenLONDON – The UK faces the risk of being classified as a tax haven, once it leaves the protective veil of the EU.

In a new report, the thinktank Tax Justice Network claimed that the EU could potentially classify the UK as a tax haven following the completion of Brexit negotiations.

The researchers at the Tax Justice Network evaluated several countries against the EU’s own classification of what is a tax haven.

The countries which were found to be tax havens were Luxembourg, Ireland, the Netherlands, Cyprus, Malta, and the UK.

However, the EU also has a policy of not classifying its member states as tax havens.

The researchers believed that if the UK leaves the EU, and the exit negotiations do not end positively, then the EU will have the capability of classifying the UK as a tax haven.

It has been noted that while the report showed 41 countries which fall under the definition of tax haven, the EU intends to issue blacklisting warnings to 53 countries, meaning that the EU could take an even stricter view of the definitions than the researchers.

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