Jurisdictions continue making progress in implementing the international standard set by the Base Erosion and Profit Shifting Project (BEPS) to tackle harmful tax practices, the Organisation for Economic Co-operation and Development (OECD) said in a peer review published on Thursday 5 January.
The Peer Review found that the regimes in Cape Verde, Hong Kong, Jamaica, North Macedonia, Honduras and Pakistan now meet the standard and are no longer harmful. The regime in Armenia is currently being modified.
On the other hand, the peers considered Albania’s tax regime potentially harmful due to a lack of substantial activity requirements. The Peers will reassess at their next meeting.
The EU will use these results to establish its ‘grey’ list of third countries and jurisdictions that have made commitments on good governance in tax matters (see EUROPE 13029/16).
In addition, the OECD recommended substantial improvements to Anguilla, the Bahamas, Barbados, the Turks and Caicos, Bahrain, Bermuda, the British Virgin Islands and the Cayman Islands.
Based on these recommendations, the EU establishes its ‘blacklist’ of uncooperative countries for tax purposes (see EUROPE 13035/32).
To read the Peer Review: https://aeur.eu/f/4sz (Original version in French by Anne Damiani)