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2017 Ecuadorian tax haven referendum

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2017 Ecuadorian tax haven referendum

19 February 2017

Do you agree that, in order to hold a position of popular election or to be a public servant, it is established as a prohibition to have assets or capital, of any nature, in tax havens?
Results
Choice
Votes %
Yes 5,030,579 55.12%
No 4,096,559 44.88%
Valid votes 9,127,138 87.23%
Invalid or blank votes 1,336,496 12.77%
Total votes 10,463,634 100.00%
Registered voters/turnout 12,816,698 81.64%

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 or 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?"[3]

Classification of tax havens

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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.[4] 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%.[4] 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.[4] 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.[4]

Along with this definition, the Ecuadorian IRS published a list of countries which currently meet the definition of a tax haven under their law.[4] 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 Americas Asia Europe Oceania Other

Campaign

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Outgoing President Rafael Correa stated that he would campaign in favour of the proposal, having previously stated that tax havens were one of the biggest issues for democracy.[5]

Results

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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 Archived 2020-09-25 at the Wayback Machine

Notes

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  1. ^ a b c d e f g h i British Overseas Territory
  2. ^ a b c Part of the  Kingdom of the Netherlands
  3. ^ a b  United States unincorporated territory
  4. ^ a b Overseas Collectivity of  France
  5. ^ a b  British Dependency
  6. ^ External Territory of  Australia
  7. ^ a b Free Association with  New Zealand
  8. ^ Free Association with the United States
  9. ^ Dependent territory of New Zealand

References

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