The Cayman Islands and Oman will soon be removed from the European 'black' list of non-cooperative jurisdictions for tax purposes, while Barbados and Anguilla will be added to it, according to a draft text from the Council of the European Union dated 28 September, of which EUROPE received a copy.
Member States' ambassadors to the EU (Coreper) gave their green light, on Wednesday 30 September, to the use of the written procedure for the adoption of the revised list, which is expected to be adopted on Tuesday 6 October, if there is no opposition. The list has already been examined by the tax attachés of the Member States on 21 September and no objections on the merits have been raised.
According to the draft text, Barbados, which had been removed from the 'black' list in February (see EUROPE 12428/2), is expected to return to the list, as in July it was judged by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes to be only “partially compliant” with the global standards for exchange of information on request. The same reason for Anguilla, which was found to be “non-compliant” in September.
The Cayman Islands, on the other hand, were added to the ‘black’ list in February and are expected to be removed as they have improved their framework for collective investment funds.
Oman, for its part, has ratified the OECD Convention on Mutual Administrative Assistance in Tax Matters and has enacted legislation allowing for the automatic exchange of information with all EU Member States, thus allowing it to be removed from the European list as well.
These amendments, if adopted, would therefore increase the ‘black’ list to 12 countries: American Samoa, Fiji, Guam, Samoa, Trinidad and Tobago, US Virgin Islands, Vanuatu, Palau, Panama, Seychelles, Barbados and Anguilla.
Deadline extension
In addition, some jurisdictions on the EU ‘grey’ list are expected to be granted a deadline extension to allow them to adopt the necessary reforms to which they are committed.
“The ongoing Covid-19 public health emergency situation has had an impact on the working methods and on the ability of many jurisdictions to take on new commitments or deliver on their past commitments”, notes the draft text.
In June, the ECOFIN Council of the EU had agreed to extend the deadlines on certain issues until circumstances permit the courts to be asked to make commitments to fill the gaps concerned (see EUROPE 12503/16).
Botswana, Namibia, Jordan, Thailand, the Maldives and Eswatini are thus expected to be given until 31 December 2020 to sign the OECD Convention on Mutual Administrative Assistance in Tax Matters and until 31 December 2021 to ratify it.
Saint-Lucia and Namibia, for their part, will reportedly have until 31 December 2020 to fulfil their commitment to end their harmful tax regimes.
Having fulfilled all their commitments, Mongolia and Bosnia and Herzegovina are also expected to leave the 'grey' list. (Original version in French by Marion Fontana)