Tax haven blacklist crosses continents, oceans and languages including U.K. territories and dependencies, Panama, South Korea, Mongolia and the United Arab Emirates. The list, which was issued in Brussels after ratification by the E.U.’s finance ministers, was prepared by European Council’s Code of Conduct Group, a body formed by tax experts drawn from every E.U. country and deals specifically with issues related to business taxation. While not legally binding, the group represents the Union’s effort to “abolish existing tax measures that constitute harmful tax competition” and to encourage countries to “refrain from introducing new ones.”
In issuing its list, the group said it aimed “to promote good governance worldwide” by working to prevent tax fraud and evasion.
1.1 Commitment to implement the automatic exchange of information, either by signing the Multilateral Competent Authority Agreement or through bilateral agreements.
The following jurisdictions are committed to implement automatic exchange of information by 2018:
1.2 Membership of the Global Forum on transparency and exchange of information for tax purposes and satisfactory rating
The following jurisdictions are committed to become member of the Global Forum and/or have a satisfactory rating by 2018:
The following jurisdictions are committed to sign and ratify the MAC or to have in place a network of agreements covering all EU Member States by 2018:
2.1 Existence of harmful tax regimes
The following jurisdictions are committed to amend or abolish the identified regimes by 2018:
The following jurisdictions have not explicitly reiterated the commitment taken at the FHTP to amend or abolish the identified regimes by 2018:
2.2 Existence of tax regimes that facilitate offshore structures which attract profits without real economic activity
The following jurisdictions are committed to addressing the concerns relating to economic substance by 2018:
If you are worried about your current business in jurisdictions on the EU blacklist please contact us to schedule an appointment with Novasigma tax consultants!
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