November 20, 2014 |
By
Keith Martin in Washington, DC
Colombia removed the Cayman Islands, British Virgin Islands and Bermuda from a list of tax havens.
Forty-one jurisdictions remain on the list. The remaining jurisdictions can be removed by entering into agreements to share information with the Colombian tax authorities. Payments that Colombian companies make to suppliers in tax havens are subject to a 33% withholding tax. The payor must collect the tax. If he does not, then he cannot deduct the payments for Colombian tax purposes.
Many Latin American countries have some form of tax haven blacklist.
