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OECD Report: European Union Overview 

List of non-cooperative jurisdictions revised

On 16 March 2018, the G20/OECD inclusive framework on base erosion and profit shifting (BEPS) released Tax Challenges Arising from Digitalisation – Interim Report 2018, which has been agreed by more than 110 jurisdictions. This article provides short summary of European Union jurisdictions revised.

European Union: List of non-cooperative jurisdictions revised

On 13 March 2018, EU finance ministers issued a second update to the EU list of noncooperative jurisdictions to take into account recent commitments made by listed jurisdictions and an assessment of jurisdictions for which a listing decision had not yet been made (several jurisdictions that suffered damage during the hurricanes in 2017 were given additional time to address the EU concerns).

Seventeen jurisdictions were on the original list issued on 5 December 2017, eight of which were removed on 23 January 2018 following commitments to address deficiencies identified by the EU (for prior coverage, see World Tax Advisor, 26 January 2018).

The following changes were made to the noncooperative jurisdiction list on 13 March:

  • Bahrain, the Marshall Islands and Saint Lucia were removed;
  • The Bahamas, Saint Kitts & Nevis and the US Virgin Islands were added because they failed to make commitments at a high political level in response to the EU’s concerns; and
  • Anguilla, Antigua and Barbuda, the British Virgin Islands and Dominica were added to a separate category of jurisdictions subject to close monitoring (i.e. the grey list).

The assessment process is continuing with the Turks and Caicos Islands, with a commitment sought by 31 March 2018.

 

The noncooperative list now is comprised of nine jurisdictions: American Samoa, the Bahamas, Guam, Namibia, Palau, Samoa, Saint Kitts & Nevis, Trinidad and Tobago and the US Virgin Islands. This includes six of the original 17 jurisdictions, plus the three newly added Caribbean jurisdictions.

Jurisdictions are included on the EU noncooperative jurisdiction list because they either lack transparency or fair taxation or have not agreed to implement the BEPS minimum standards.

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