A move by the European Union to include 17 countries on a blacklist of global tax havens will be a “rude shock” to any EU citizens trying to conceal assets, wealth experts said on Thursday.
Gordon Robertson, owner of Investme Financial Services, said tax authorities in EU countries will clamp down on any citizens squirrelling away assets, such as property, without their knowledge.
“Individuals who have been using the UAE to hide assets are due for a rude shock next year,” he said. “The tax authorities in the country of residence will be asking some very uncomfortable questions...property is the main culprit, as it is easy to hide large amounts of money by turning it into bricks and mortar. Cryptocurrency is also a potential global system in which one can hide assets."
The list, revealed by the EU on Tuesday after a year of tough negotiations, aims to prevent tax dodging by the wealthy. However, the UAE government said on Thursday it expects to be taken off the European Union's tax-haven blacklist after it implements final outstanding measures set by the EU.
"We have committed to a reform process which will be finalised by October 2018, and we are absolutely confident this will ensure the UAE is swiftly removed from the list," the Ministry of Finance said in a statement.
Jeremy Cape, a tax lawyer at Squire Patton Boggs, said countries added to the Council of the EU's blacklist, have according to the body, failed to meet certain criteria on tax transparency, fair taxation and the “implementation of the anti-BEPS minimum standards” - an agreement signed by some OECD member countries to tackle tax avoidance strategies that allow multinational companies to shift profits artificially to low or no-tax locations.
"In the case of the UAE specifically, the Council has concluded that it does not apply the BEPS minimum standards and has not given a commitment to do so by the end of 2018," Mr Cape said. "The UAE’s commitment to tax transparency and the automatic exchange of information in tax matters is also being monitored."
The Ministry of Finance said it has been working with the EU since early 2017 to satisfy transparency criteria, with the only outstanding issue being the implementation of the BEPS minimum standard.
"The “tax haven” label is imprecise (and highly politicised) but has clear and negative connotations," Mr Cape said. "It is seen as a mechanism to apply international pressure on countries to align their tax regimes with globally agreed standards."
"For example, countries listed on the blacklist will have funding from EU institutions limited. In addition, EU member states will be asked to reinforce their own monitoring of transactions involving blacklisted countries, raise the risk profile of taxpayers with activities in them.
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Dubai wealth managers dismiss UAE inclusion in EU tax haven blacklist
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EU puts 17 countries on tax haven blacklist
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Jahangir Aka, the head of Middle East and North Africa for the investment manager Neuberger Berman, said he was surprised to see the UAE on the list as EU residents invested into the four jurisdictions with links to the UK - Bermuda, the Cayman Islands, Jersey and the Isle of Man, which have been placed on a so-called “grey list” - should be more worried.
“Those four are notorious with being tax havens; the UAE is not notorious with being a tax haven," said Mr Aka.
While the blacklist is primarily targeted at multinational businesses, Sam Instone, the founder of the financial advisory firm AES International, said EU citizens that try to avoid personal or corporate tax may also have taxation measures or administrative blocks applied.
“EU citizens may also find it harder to transfer assets from the EU into the UAE, for example making bank transfers,” he said.
Keren Bobker, a partner at Holborn Assets, said UAE residents from the EU will generally be unaffected but they may have a “few more hoops to jump through when remitting funds out of the UAE”.
“The majority of expats have no tax liability on their earnings in their home countries but this may not be the case for all companies, especially if they have set up a base in the UAE to avoid paying tax elsewhere,” she added. “More questions will be asked when companies are moving money around as governments and global organisations will be seeking to verify the source of funds.”
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
Miss Granny
Director: Joyce Bernal
Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa
3/5
(Tagalog with Eng/Ar subtitles)
SPECS
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Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
AT%20A%20GLANCE
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GRAN%20TURISMO
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Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
INVESTMENT PLEDGES
Cartlow: $13.4m
Rabbitmart: $14m
Smileneo: $5.8m
Soum: $4m
imVentures: $100m
Plug and Play: $25m
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.