Ministry of Finance Adds Russia to Financial Blacklist

Russia has been blacklisted, following a tax-related decree issued by the Hungarian government, reports Index. This move is not unprecedented, as the Ministry of Finance had proposed a draft decree two weeks earlier.

The amendment’s goal is to align Hungarian legislation with EU standards, enhance efforts against tax evasion, and promote compliance with international tax regulations. The decree designating “non-cooperative states” has been officially published in the Hungarian Gazette.

Alongside traditional offshore tax havens, Russia now finds itself on this list, potentially subject to stringent sanctions.

Other countries listed include American Samoa, U.S. Virgin Islands, Anguilla, Antigua and Barbuda, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, and Vanuatu.

Several adjustments have been made to the list. For instance, Russia’s inclusion dates from 2023 due to sanctions. Meanwhile, earlier this year, the EU removed the Bahamas, Belize, Seychelles, and Turks and Caicos Islands from its own non-cooperative list. Antigua and Barbuda joins Russia as a recent addition.

The EU’s list of non-cooperative jurisdictions is part of its broader efforts to combat tax evasion and avoidance, as outlined on the European Council’s website.

These jurisdictions fail to meet international tax standards, such as exchanging information or implementing measures against tax evasion. Such places are often labeled as tax havens, enabling companies and individuals to evade taxes with minimal repercussions and maintain anonymity regarding their ownership.

Via Index; Featured Image: Pixabay