Accountants and lawyers ‘must report’ aggressive tax avoidance schemes

Accountants, bankers and lawyers will face penalties if they fail to report aggressive tax avoidance schemes that help companies or individuals move money to offshore havens, under a new European Union law.

The rules, agreed by EU finance ministers on Tuesday, will affect the UK financial services industry despite Brexit, because they enter into force six months before the likely end of a transition period, during which the government must obey all EU law.

The finance ministers also added the Bahamas to the bloc’s tax blacklist, months after the British overseas territory was caught up in the Paradise Papers leak of offshore secrets.

Two other British overseas territories, Anguilla and the British Virgin Islands, were put onto a “greylist” of jurisdictions that have promised to reform their tax policies to meet EU standards.

As a result of Tuesday’s agreement on tax transparency, accountants, bankers and lawyers will be obliged to report to national authorities “potentially aggressive tax planning schemes with a cross-border element”, or risk a penalty.

Source: theguardian