The US Treasury Secretary Steven Mnuchin has recently sent a letter to the EU Secretary General Jeppe Tranholm-Mikkelsen. In the document, the US presents its position in the BEPS project and Global Forum, as well as expressing its counterview on the EU Blacklist of Non-Cooperative Jurisdictions for tax purpose released by the European Council on December 5, 2017.
Jurisdictions on the list were selected based on a reviewing of non-European jurisdictions, which raises a lot of criticism. The US announced it is disagreeing with the Council’s decision to subject non-EU jurisdiction to a separate the review process and to release its own list. In addition, the Council’s review of jurisdictions is blamed as duplicative of the process undertaken by the G20 and OECD to identify a comprehensive list. Such a list could undermine the international consensus on standards for a level playing field across jurisdictions.
The EU list includes Guam and American Samoa with the argument that these regions do not implement BEPS minimum standards. However, the US defends that these regions are territories of the country and are participating in the working on tax transparency. Furthermore, the US would like to reiterate the close connection between the legal framework in place in the US territories and the legal framework in the rest of the US.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):