Gov’t steps up efforts in pursuit of offshore accounts

The first deal to this end was signed with the Jersey Islands. Turkey has been holding talks with Jersey to sign a model Tax Information Exchange Agreement (TIEA) that was prepared by the Organization of Economic Cooperation and Development (OECD) to prevent off-the-record money transfers from going to tax havens. The deal with Jersey was signed by the end of last year and approved by Parliament.

Negotiations to ink the same deal with two other countries that are defined as tax havens by the OECD -- Bermuda and the Guernsey Islands -- have come to a close and the deal can be signed any time, according to Finance Minister Mehmet Şimşek. Officials from the Finance Ministry have said the government shares the same concerns with the OECD regarding tax matters between countries, and they will contact a number of new tax havens in their pursuit of financial accountability in the coming month. “Tax havens have long been one of the most popular ways to escape from taxes at home for Turkish companies. The government is determined to end this loophole,” a senior Finance Ministry official, who asked to remain anonymous, told Today’s Zaman on Friday.

Companies usually conduct investments through an office in a tax haven.