Mongolia needs to take action at “all levels of government” to get itself removed from a European Union blacklist of tax havens, its foreign minister said, following talks with European counterparts.
Mongolia is one of 17 jurisdictions outside the European Union that risk losing access to EU funds or facing other forms of censure, after the bloc this month deemed them to not be cooperative on tax matters.
“We have to implement a series of coordinated measures at all levels of government,” Foreign Minister D.Tsogtbaatar said on Tuesday, without mentioning specifics.
Minister Tsogtbaatar said he had discussed the issue last week with officials of each EU member nation at a ministerial meeting in Vienna of the Organisation for Security and Co-operation in Europe.
It is important that Mongolia comply with international standards for tax, said D.Onchinsuren, the country managing partner for tax accountancy Deloitte Onch LLC in Ulaanbaatar, the capital.
In 2011, Mongolia took the rare step of cancelling a tax treaty with the Netherlands, saying it would cost the country income from the Oyu Tolgoi mine, jointly owned by mining giant Rio Tinto and the Mongolian government. Mongolia has also cancelled tax treaties with Kuwait, Luxembourg and the UAE.