The European Union threatens Turkey with putting it in its ‘black’ list of tax havens in case of not activating the tax information exchange system with the member states of the block before the June 30, 2021, after the EU extended the initially agreed deadline before December 31, 2020. At the moment, Turkey is on the ‘gray’ list.
The new update of the list of non-cooperative jurisdictions in tax matters it has removed Barbados, although its place has been taken by Dominica. The document, therefore, continues to be made up of twelve territories, which are American Samoa, Anguilla, Dominica, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the American Virgin Islands and Vanuatu.
The changes were approved last week by the Finance Ministers of the Twenty-seven (Ecofin) and they have been formally approved this Monday at the meeting of their foreign counterparts at a point without discussion.
In the document, the EU regrets that Turkey only activated this agreement with 21 countries of the bloc. Consequently, it requires Ankara to initiate a “high-level” dialogue with the remaining six partners and agree to the exchange of tax information before the end of June.
Thus, Turkey will have to send the 27 Member States the Tax information required for fiscal year 2021 “no later than September 1, 2021.” In addition, the relevant data for fiscal years 2020 and 2021 will have to be sent in accordance with the schedule set by the OECD and “in no case later than September 30, 2021 and September 30, 2022, respectively.”