Friggo Kraaijeveld of FinExpertiza Netherlands comments on EU plans to "grey-list" Russia as a non-cooperative jurisdiction
The EU plans to add Russia to the European grey list of non-cooperative jurisdictions may be based not only on tax reasons, but also on geopolitical concerns, Friggo Kraaijeveld, Partner at FinExpertiza Netherlands, told RIA Novosti.
Earlier the EUobserver reported that the EU was considering "grey-listing" the Russian Federation along with Israel, Bermuda and the British Virgin Islands. The grey list may be extended from 15 to 25 jurisdictions.
"The grey list contains jurisdictions that have committed to taking certain actions to address EU concerns but have not succeeeded yet. Russia is allegedly to be added due to the country's failure to amend its international holding company regime," commented Friggo Kraaijeveld.
"Practically, this means that Russia is being put on notice and should change the criticized tax regime if it desires to avoid being listed as non-cooperative on the European black list. The European grey list, in effect, works as a preliminary stage to the European black list. Otherwise being put on the European grey list should not have immediate adverse consequences. On the other hand, the direct impact of being on the European black list includes changes in European and national foreign economic and political relations, denial of European funding, European and national anti-tax abuse measures and stricter anti-fraud and risk audits," warns the expert.