Taiwan has not been included in a European Union list of tax havens published Tuesday.
The tax haven black list includes 17 countries and regions. Taiwan’s representative to the EU Harry Tseng says this shows that the EU recognizes and affirms Taiwan’s efforts on tax issues.
In order to avoid being placed on the black list, the EU must deem a country’s tax laws to be fair and transparent. Countries must also use Organization for Economic Cooperation and Development measures to tackle Base Erosion and Profit Shifting (BEPS).
In recent years, many wealthy persons and international companies have been caught avoiding taxes and hiding their profits overseas. The EU has been pursuing these cases and found that over 90 countries and regions do not meet EU standards. The EU may take measures such as keeping EU funds from entering blacklisted countries.
While Taiwan has not been placed on the EU black list, it has been placed on a separate “gray list” of countries do not fully meet EU standards but which have promised to change.
Tseng said that Taiwan’s tax system is different than the EU’s and that Taiwan is unable to participate in many international organizations. But Tseng also said that Taiwan has promised to be transparent and increase cooperation in exchanging tax-related information.