Nauru fully compliant with EU tax and financial security regulations

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Nauru’s Finance Minister David Adeang. Picture: RNZ

YAREN, 14 AUGUST 2018 (NAURU GOVT) – The Government has revealed that Nauru has been confirmed as fully compliant with European Union (EU) tax and financial security regulations at a recent EU international tax seminar in Fiji.

Finance minister David Adeang said Nauru was the only country at the seminar to qualify for this rating, and that the government will work with international authorities to combat terrorist financing, tax evasion and money laundering.

Nauru was previously on “monitored” status which effectively meant it was blacklisted like many other Pacific countries from being able to fully participate in many global financial areas by both the EU and OECD.

Adeang said the Government has fulfilled the strict requirements of the EU’s base erosion and profit shifting (BEPS) regime requirements, which stops companies from hiding profits and avoiding tax in low or no tax jurisdictions across the world.

“Since the election of the Waqa Government in 2013 we have worked very hard to lift Nauru’s international reputation, which was damaged over so many years by many former administrations due to greed and corruption.

“Over the past five years Nauru has gained the respect of the global community through making tough decisions and focusing on economic progress.”

He said the people of Nauru are directly benefiting from the government’s efforts to change the economic culture and pointed to the announcement of the new port, increased international financial assistance, the growing Nauru Intergenerational Trust Fund and acceptance of Nauru by world financial organisations like the IMF and World bank.

“Even on the ground we are seeing major upgrades in infrastructure, increased prosperity, the success of the local bank and an overall rising standard of living.”

The EU announcement is in addition to Nauru’s rating of “Substantially Compliant” resulting from the OECD Global Forum Fast Track Review in June of 2017.

“This is a great result for the Republic of Nauru and I thank all involved who helped achieve it,” Adeang said.