UAE, Bahrain to act over Europe tax haven claims

EU finance ministers included the UAE and Bahrain on a new blacklist of 17 jurisdictions deemed tax havens. (Reuters)
Updated 08 December 2017
0

UAE, Bahrain to act over Europe tax haven claims

DUBAI: The UAE and Bahrain expect to be removed from the EU’s tax-haven blacklist after taking steps to block tax avoidance by companies, the governments of the two countries said on Thursday.
Two days ago, EU finance ministers included the UAE and Bahrain on a new blacklist of 17 jurisdictions deemed to be tax havens. Inclusion on the list could affect billions of dollars of capital flows through both countries, which are Middle Eastern banking centers.
Countries on the blacklist may no longer be used by EU institutions for international financial operations, and transactions involving them could be subject to closer scrutiny.
On Thursday, both the UAE and Bahrain said they did not deserve to be on the list because they had already taken many steps to exchange financial information with other countries. But they pledged to do more to satisfy the EU.
“We have committed to a reform process which will be finalized by October 2018, and we are absolutely confident this will ensure the UAE is swiftly removed from the list,” the UAE said. It said its only outstanding issue with the EU was implementing the BEPS Minimum Standard. BEPS is a set of policies to tackle tax avoidance strategies that allow multinational companies to shift profits artificially to low or no-tax locations.
The UAE has committed to finalizing implementation of BEPS by October 2018 and ratifying it by March 2019, a schedule which would give the country’s federal structure enough time to ratify the measure across all seven emirates, the government said.
“We stand by this realistic timeline,” it said, adding that it was confident of being recognized as an internationally compliant tax jurisdiction at the EU’s next review.
Bahrain said its national assembly had begun the process of approving agreements that would allow it to collect information from its financial institutions and automatically exchange it every year with other countries.
The government also said it would commit to becoming a member of the Inclusive Framework on BEPS, a group of more than 100 countries and jurisdictions that cooperate to implement BEPS policies.
“Bahrain will initiate dialogue with the EU on this matter, to ensure understanding and recognition of the Kingdom’s efforts to ensure financial transparency, international cooperation and a robust regulatory environment,” it said.


Oil prices rise on signs Iranian oil exports are falling further

Updated 16 October 2018
0

Oil prices rise on signs Iranian oil exports are falling further

SEOUL: Oil prices dipped on Tuesday amid expectations of an increase in US crude inventories, but signs of a fall in Iranian oil exports this month kept losses in check.
International benchmark Brent crude for December delivery had fallen 6 cents, or 0.07 percent, to $80.72 per barrel by 0654 GMT.
US West Texas Intermediate crude for November delivery was down 14 cents at $71.64 a barrel.
US crude stockpiles were forecast to have risen last week for the fourth straight week, by about 1.1 million barrels, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the US Department of Energy’s Energy Information Administration (EIA).
The API’s data is due at 4:30pm EDT on Tuesday, and the EIA report will be released at 10:30am EDT on Wednesday.
“Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers,” said Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul.
“Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel,” Hwang added.
In the first two week of October, Iran exported 1.33 million barrels per day (bpd) of crude to countries including India, China and Turkey, according to Refinitiv Eikon data. That was down from 1.6 million bpd during the same period in September.
The October exports are a sharp drop from the 2.5 million bpd in April US before US President Donald Trump withdrew from a multilateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the data showed.
The sanctions will come into force on November 4. The US special envoy for Iran said on Monday that the US is still aiming to cut Iran’s oil sales to zero.
Meanwhile, OPEC Secretary General Mohammad Barkindo said on Tuesday that global spare oil capacity was shrinking, adding that producers and companies should increase their production capacities and invest more to meet current demand.
With the world’s only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.
Saudi Arabia’s Energy Minister Khalid Al-Falih said on Monday at a conference in New Delhi that the kingdom is committed to meeting India’s rising oil demand and is the “shock absorber” for supply disruptions in the oil market.