On Tuesday 8 October in Luxembourg, the Ecofin Council revised the European Union’s blacklist of non-cooperative jurisdictions for tax purposes, with the removal of Antigua and Barbuda. As a result, this jurisdiction joins the European ‘grey’ list of jurisdictions committed to good tax governance, from which Armenia and Malaysia have been removed.
The number of jurisdictions on the blacklist has risen to 11, and still includes: Anguilla, Fiji, Guam, American Virgin Islands, Palau, Panama, Russian Federation, Samoa, Trinidad and Tobago and Vanuatu. The EU Council regrets that these jurisdictions remain uncooperative for tax purposes and that a number of jurisdictions have failed to meet their commitments under the Code of Conduct. It encourages these jurisdictions to continue their efforts with a view to future updates of the list.
The Caribbean island of Antigua and Barbuda was placed on the list in October 2023 (see EUROPE 13273/15), after a negative assessment by the OECD Global Forum regarding the exchange of information on request. Following regulatory changes undertaken by the Antigua and Barbuda authorities, the Global Forum will undertake a further review. Pending the results of this review, this jurisdiction has been placed on the ‘grey’ list.
In addition, two jurisdictions on the list for a long time, Fiji (see EUROPE 13418/14) and Palau, have taken promising steps to comply with the listing criteria.
Previously on the ‘grey’ list for lack of tax fairness due to harmful tax regimes, Armenia and Malaysia have been removed as they have fulfilled their commitments.
The ‘grey’ list now includes 11 jurisdictions. Eswatini continues to be criticised for its lack of tax fairness, due to the existence of a special economic zone. The country was due to abolish this harmful tax regime by 31 December 2023, and the EU is awaiting a final assessment from the Forum on Harmful Tax Practices (FHTP).
Vietnam is still on the list because of the prevention of tax base erosion and profit shifting. In the light of recent assurances, the country has been granted additional time to meet its country-by-country reporting commitment and will be reassessed at the next update, scheduled for February 2025.
With regard to the lack of transparency, Antigua and Barbuda, Belize, the British Virgin Islands and the Seychelles, Costa Rica and Curaçao are listed because of an unsatisfactory assessment by the Global Forum with regard to exchange of information on request.
As for Turkey, it is expected to exchange information effectively with all 27 Member States. The Ecofin Council regrets that Turkey has not made progress with any particular Member State and reiterates its call for this exchange of information to begin.
“If the EU applied the same standards to itself as to others, several European countries would also be on the ‘black’ list”, criticised Pasquale Tridico (The Left, Italian), Chair of the European Parliament’s Subcommittee on Tax Matters. “According to a report by the NGO Tax Justice Network, three EU Member States - the Netherlands, Ireland and Luxembourg - are among the top ten jurisdictions that facilitate tax evasion worldwide. This inconsistency must be addressed through comprehensive tax reforms that tackle tax evasion and avoidance by large multinational corporations”, he added.
To see the list: https://aeur.eu/f/drn (Original version in French by Anne Damiani)