Finance:Ecuadorian tax haven referendum, 2017
A referendum on banning politicians and civil servants from having bank accounts or companies based in tax havens was held in Ecuador on 19 February 2017, alongside general elections.[1] The proposal was approved by voters, giving officials one year to transfer their assets.[2] If they do not, they will be removed from their posts.[2]
The question on the ballot was "Do you agree that, for those holding a popularly elected office or for public servants, there should be a prohibition on holding assets or capital, of any nature, in tax havens?"[2]
Classification of tax havens
In preparation for the referendum, the Ecuadorian Internal Revenue Service issued a resolution outlining the criteria for a jurisdiction to be considered a tax haven, establishing two categories: Preferential tax regimes, and low tax jurisdictions.[3] A preferential tax regime was classed as a jurisdiction whose effective tax rate is below 60% in relation to the Ecuadorian corporate income tax (CIT) rate of 13.2%.[3] A low tax jurisdiction was classed as having an effective tax rate below 60% in relation to the Ecuadorian CIT of 13.2% and no substantial economic activity.[3] The IRS may remove a country from their list of tax havens if it reforms its tax policy, if it enforces a treaty to avoid double taxation, including a special information exchange clause, or if its laws do not include banking confidentiality, securities or other regulations that prohibit sharing information with the Ecuadorian IRS.[3]
Along with this definition, the Ecuadorian IRS published a list of countries which currently meet the definition of a tax haven under their law.[3] This list included 28 jurisdictions in the Americas, 19 in Oceania, 16 in Europe, 13 in Asia, 9 in Africa and two other island territories.
Africa
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Americas
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Asia
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Europe
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Oceania
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Other
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Campaign
Outgoing President Rafael Correa stated that he would campaign in favour of the proposal,[2] having previously stated that tax havens were one of the biggest issues for democracy.[4]
Results
| Choice | Votes | % |
|---|---|---|
| Yes | 5,030,579 | 55.12 |
| No | 4,096,559 | 44.88 |
| Invalid/blank votes | 1,336,496 | – |
| Total | 10,472,302 | 100 |
| Registered voters/turnout | 12,816,698 | 81.64 |
| Source: CNE | ||
Notes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 United Kingdom Overseas Territory
- ↑ 2.0 2.1 2.2 Part of the Kingdom of the Netherlands
- ↑ 3.0 3.1 United States unincorporated territory
- ↑ 4.0 4.1 Overseas Collectivity of France
- ↑ 5.0 5.1 British Dependency
- ↑ Australia External Territory
- ↑ 7.0 7.1 Free Association with New Zealand
- ↑ Free Association with the United States
- ↑ Dependent territory of New Zealand
References
- ↑ Referendum on tax havens will be conducted in the elections of 2017 Ecuador Times, 22 November 2016
- ↑ 2.0 2.1 2.2 2.3 Ecuador to Hold Referendum on Tax Havens Telesur, 23 November 2016
- ↑ 3.0 3.1 3.2 3.3 3.4 Ecuadorian IRS issues resolution with new list of tax haven jurisdictions EY, 9 February 2015
- ↑ President Correa: tax havens are one of the biggest problems in our democracies Andes, 29 July 2016
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