Brazil puts Switzerland on 'tax haven' list

8th June 2010, Comments 0 comments

Brazil on Monday put Switzerland on its list of tax havens, classifying it as one of 65 countries or territories that will raise a flag when it is involved in financial transactions.

The inclusion, announced by Brazilian tax authorities and published in the official government gazette, declared Switzerland a country with "favored taxation," meaning it imposed a revenue tax of less than 20 percent and refuses to divulge complete company information.

Others on the list, which was expanded from 53 entries, include the Dutch Antilles, the Cayman Islands and Liechtenstein.

They are all "subject to legislation verifying the value of transfers for operations effected by individuals or corporations," the Brazilian tax service said.

Brazilian authorities have progressively ramped up checks for potential tax evaders, making it increasingly difficult for wealthy individuals to funnel cash or make transactions outside of the country without paying imposts.

Switzerland's appearance on the tax haven list was a surprise, though.

Another list, one of countries with a "privileged fiscal regime," exists that denotes countries such as the United States, Luxembourg, Denmark, Spain and Malta that give certain benefits to companies without going as far as those put on the tax haven roll.

© 2010 AFP

0 Comments To This Article