On 25 May 2016, the Minister of Finance and Economic Affairs presented to the parliament a draft bill to combat tax evasion with respect to ownership in low-tax countries. The draft bill is part of the government's reaction to the "Panama Papers", which indicate possible tax avoidance on the part of Icelandic taxpayers.
The draft bill includes the following amendments:
The Minister has set up a working group to draft proposals amending relevant laws, regulations and procedures as part of the government's action to combat tax evasion and the use of tax havens, in general. This includes the BEPS Action Plan, thin capitalization rules and limitation on the deductibility of dividends received from companies in low-tax countries.