EU REMOVES EIGHT COUNTRIES FROM TAX HEAVEN BLACKLIST

In January 2018 the European Union removed eight jurisdictions from its non-cooperative jurisdictions for tax purposes, leaving only nine countries on the list.

The list was created in 2017 with the goal of promoting good governance in taxation worldwide, combatting the use of offshore tax heavens and preventing large-scale tax abuse. In January 2018, ministers of finance agreed to remove Barbados, Grenada, the Republic of Korea, Macao SAR, Mongolia, Panama, Tunisia and the United Arab Emirates from the blacklist to the so-called grey list, as these countries have committed to make their tax policies compliant with EU standards. After being delisted, these countries will be subject to close monitoring.

Jurisdictions that remain on the list (American Samoa, Bahrain, Guam, Marshall Islands, Namibia, Palau, Saint Lucia, Samoa and Trinidad and Tobago) are strongly encouraged to make the requested changes and commitments, due to the fact that institutions within the EU are prohibited from using black listed countries for international financial operations.

Countries on the grey list (which includes 47 jurisdictions) have committed to changing their tax rules to abide by EU standards on transparency and cooperation. However, if these countries fail to respect their engagements, they can be moved back to the blacklist.