The European Union (EU) has removed the Maldives from the list of “non-cooperative” tax jurisdictions list, following significant improvements made by the island nation.
Meanwhile, the union had blacklisted 17 other countries as “non-cooperative tax jurisdictions” in their report; “A Fair and Efficient Cooperative Tax System in the European Union” which was issued out on 05th December 2017.
Moreover, the list comprises of countries with “fraudulent tax systems” and is compiled by the EU for the purpose of discouraging “rules and regulations that pave ways for large businesses and the rich to evade or avoid tax.”
As such, Maldives is now no longer in the list due to the numerous and strong efforts made by the Maldives Inland Revenue Authority (MIRA) in tax reformation.
Furthermore, the Government of Maldives is credited in strengthening the tax system in the country; achieved after examining the factors which contributed to the Maldives being included in the initial ‘blacklist’ by the EU.
In addition to this, Maldives state is pushing for additional measures which are currently being deliberated, and moving towards possible implementation under the guidance of the EU which will help the island nation to become a competitive jurisdiction with regards to taxation.
Maldives has also joined the Global Forum on Transparency and Exchange of Information for Tax Purposes, which is led by the Organization for Economic Corporation and Development (OECD).
This forum aims to improve the “global contribution and enhance the tax system.”
Meanwhile, the President of the Maldives Mr. Ibrahim Mohamed Solih declared that the island nation will become a member country of the “inclusive framework” composed by the OECD and the G20 member countries aiming to abolish ‘global tax jugglery.’
Furthermore, the Minister of Finance and Treasury assured the EU that the Maldives state will provide full support to the tax authority, in “all its efforts to help the country strive against tax evaders on a global level.”
Additionally, the minister affirms further support and encouragement of the Maldives’ involvement in EU’s initiative towards strengthening the global tax system.