Wednesday, 31 January 2018

Namibia has harmful tax system – EU

Namibia will remain on the European Union blacklist as long as it refuses to ratify the Organisation for Economic Cooperation and Development's convention and abolish harmful preferential tax regimes. The EU blacklisted Namibia last year, together with countries like Panama, South Korea, Macau, Barbados, Samoa, Trinidad and Tobago, Tunisia and the United Arab Emirates for failing to deal with illicit financial flows. The OECD is an inter-governmental economic organisation with 35 member countries, founded in 1961 to stimulate economic progress and world trade. According to the Outcome of Proceedings for the Council of the European Union dated 5 December 2017, Namibia is not a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes. Additionally, the outcome of proceedings says Namibia has not signed and ratified the OECD multilateral convention on mutual administrative assistance, as amended, and also did not implement the basic tax erosion and profit shiftings (Beps) minimum standards. The EU said Namibia did not commit to addressing the above issues by 31 December 2019, neither did it commit to amending or abolishing the harmful preferential tax regimes by 31 December 2018. Finance minister Calle Schlettwein yesterday confirmed the reasons for the blacklisting, but defended the notion that the country has a harmful preferential tax system.

Source: Namibian