On Tuesday, 18 February, the Economic and Financial Affairs (Ecofin) Council reviewed the European Union’s blacklist of non-cooperative jurisdictions for tax purposes and made no changes. However, Brunei Darussalam was added to the EU’s ‘grey list’ of jurisdictions that have made commitments with respect to good tax governance.
As a result, the blacklist still includes 11 jurisdictions: Anguilla, Fiji, Guam, the US Virgin Islands, Palau, Panama, the Russian Federation, Samoa, American Samoa, Trinidad and Tobago, and Vanuatu.
However, the ‘grey list’ only has eight jurisdictions on it: Brunei Darussalam was added, and Costa Rica and Curaçao were removed. Like Eswatini, Brunei Darussalam was criticised for its lack of fair taxation. Eswatini has been kept on the list—as it was during the last review (see EUROPE 13499/21)—due to the existence of a special economic zone, which it was supposed to abolish by 31 December 2023, and the EU is awaiting a final assessment by the Forum on Harmful Tax Practices (FHTP). As for Brunei, it has committed to either amend or abolish a harmful foreign-source income exemption regime by 31 December 2025.
Vietnam is still on the list due to [the progress it needs to make towards] preventing tax-base erosion and profit shifting. The country has committed to implement the country-by-country reporting (CbCR) minimum standard and to activate CbCR exchange relationships with all EU Member States. It signed the multilateral agreement and is in the process of taking the necessary steps to activate CbCR exchange relationships with all EU Member States.
Concerning a lack of transparency, Antigua and Barbuda, Belize, Seychelles, and the British Virgin Islands are waiting for the Global Forum to conduct an in-depth review as it pertains to their membership and their ratings with respect to the exchange of information on request.
As for Turkey, its situation remains unchanged: it is supposed to effectively exchange information with all 27 Member States. The Ecofin Council regrets that Turkey has not made any progress with one Member State in particular and reiterates its call to begin this exchange of information.
In a press release, Chiara Putaturo, a tax expert at the NGO Oxfam EU, criticised the European list: “Five years ago, the European Commission promised reforms. Five years later, nothing has changed. Despite new pledges, it seems we are stuck in a cycle of all process and no progress.” “The EU should blacklist any country that allows companies to pay little or no taxes or hide their true owners and thus escape accountability or taxes”, she added, calling on the EU to “close loopholes that allow the super-rich to avoid paying taxes”.
The list will be reviewed again in October.
Read the list: https://aeur.eu/f/fjz (Original version in French by Anne Damiani)