In early November, the EU Council adopted a mechanism to create a new list of offshore jurisdictions. The idea to create a new black list of offshore jurisdictions arose after the scandal surrounding the Panama Archives. A new list of offshore outlets will be released in late 2017. By mid-September 2017, the European Union will complete the verification of non-EU countries, including Ukraine. Can our country get into the new "black list" of the EU?


According to the new EU criteria, all states should have tax transparency: to implement automatic information exchange in accordance with the Common Reporting Standard (CRS), and start exchanging information by 2018 at the latest 2018. They must also meet the criteria and ranking of the Global Forum for automatic information exchange.


In 2016, the OECD Global Forum released a report on Ukraine with positive results from the first phase of the verification, and allowed Ukraine to the next stage, which is already exploring the practical implementation of the recommendations. We have two ways: either to comply with all the recommendations of the Global OECD Forum or to provide information exchange through bilateral agreements. In the second case, it is necessary to review a large number of obsolete bilateral double taxation conventions in a short time, in order to bring them into line with the OECD model convention, which is a serious challenge for Ukraine.


The main conditions of the Global OECD Forum are the absence of privileged (preferential) tax regimes and the prohibition of state assistance to offshore structures. As a result, jurisdictions will disappear in the world, which exempts from taxation the profits of companies working and receiving income outside their borders. Ukraine meets this criterion.


The next condition is that our country needs to join the BEPS Association, which implies the introduction of the BEPS Plan Minimum Package in the future. It includes: advanced Country-by-Country Reporting Requirements, the introduction of dispute settlement mechanisms for the application of double taxation treaties between countries, and the fight against tax abuse in connection with the application of special tax regimes and / or tax conventions.