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Mongolia removed from EU grey list
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Commending Mongolia for fulfilling all its
commitments to the EU and ratifying the Multilateral Convention on Mutual
Administrative Assistance in Tax Matters, the Economic and Financial Affairs
Council of the EU made a decision, during its meeting held on October
6, to officially remove Mongolia from the EU grey list of non-cooperative
jurisdictions for tax purposes, reported the Ministry of Foreign Affairs of
Mongolia on October 7.
At the press
conference, Advisor at the Department of International Treaty and Law of
Ministry of Foreign Affairs B.Mandakhbileg said, “In 2017, the EU adopted its black list
of jurisdictions that do not share information on tax issues, do not
ensure transparency, and lack a legal framework against tax evasion and
Mongolia was added to the list on December 5, 2017. However, as a result of the
joint efforts made by the Ministry of Foreign Affairs and the Ministry of
Finance of Mongolia, the country was removed from the “black list” in January 2018
and moved to the “grey list”.
In aims to be removed
from this list, the Government of Mongolia adopted Resolution No.350 in 2017 to
ensure tax transparency, information exchange, and the implementation of
international rules to combat tax evasion, as well as joining “Global Forum on
Transparency and Exchange of Information for Tax Purposes” of the Organization
for Economic Co-operation and Development as a member country. In line with the
organization's recommendations, the legal framework for information exchange,
transparency, cooperation, and tax evasion has been incorporated into domestic
legislation as part of the tax reform package.
In addition, within
the framework of its obligations to the European Union, the Convention on
Mutual Administrative Assistance in Tax Matters was ratified by the Parliament
of Mongolia on January 3 and entered into force on June 1 which played an
important role in Mongolia’s removal from the grey list.
It should be noted
that this is not a list of countries with strategic deficiencies or
so-called ‘Grey List’ of Financial Action Task Force (FATF).
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