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Sunday, June 23, 2024

The European Union has adjusted its list of offshore companies

The European Union has adjusted its offshore list. “The Council (EU) decided to revise the list of jurisdictions that do not cooperate with the EU for tax purposes, deciding to add Dominica (not to be confused with the Dominican Republic) to the list of jurisdictions not cooperating with the EU, and to exclude Barbados from this list,” press release about the decision.

The list of EU jurisdictions that do not cooperate with its tax authorities was compiled in December 2017.

It has become part of the EU’s external tax strategy and serves to promote good tax administration worldwide.

The work on the list is a dynamic process, since 2020 it is updated twice a year.

It includes jurisdictions that either have not engaged in constructive dialogue with the EU on tax administration issues or have failed to comply with the reform commitments required to meet objective criteria for good tax administration.

These are the criteria for tax transparency, fair taxation and compliance with international standards against tax base distortion and profit shifting.

The changes to the list take into account the rankings recently published by the OECD Global Forum on Transparency and Information Exchange regarding information exchange on request.

The EU requires jurisdictions to be at least “substantially compliant” with this international standard.

Following the February 2021 update, 12 jurisdictions are listed as non-cooperating: American Samoa, Anguilla, Dominica, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, US Virgin Islands and Vanuatu.

Another list (“On the state of affairs”) includes jurisdictions that do not yet fully comply with international tax standards, but have made sufficient commitments to implement them.

This document has also been updated by the EU Council. They concern Morocco, Namibia, Saint Lucia, Jamaica, Maldives, Australia and Jordan.

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