EU Finance Ministers updated the EU list of non-cooperative tax jurisdictions. Four countries or territories- Cayman Islands, Palau, Panama and Seychelles – have been added to the list of non-cooperative tax jurisdictions, as they failed to comply with the required standards within the deadline.
These join the eight jurisdictions –American Samoa, Fiji, Guam, Samoa, Oman, Trinidad and Tobago, Vanuatu and US Virgin Islands – that were already on the list and remain non-compliant. By contrast, over half of the countries covered by the 2019 listing exercise have been completely delisted, as they are now in line with all of the tax good governance standards.
Under the EU listing process, jurisdictions are assessed against three main criteria – tax transparency, fair taxation and real economic activity. Those that fall short on any of these criteria are asked for a commitment to address the deficiencies within a set deadline.
The inclusion of the Cayman Islands in the EU’s “black list” of tax havens makes Cyprus even more advantageous as a safe and secure option, especially in the area of investment funds.