ECNETNews, October 9, 2024: Three Caribbean territories, including one U.S. jurisdiction, have been retained on the European Union’s current tax haven blacklist. The affected areas are Anguilla, Trinidad and Tobago, and the U.S. Virgin Islands (USVI).
The EU Council, representing the 27 member states of the European Union, expressed its disappointment that these jurisdictions have not yet demonstrated cooperation on tax-related matters. The Council has urged these territories to enhance their legal frameworks to address the identified concerns.
In Trinidad and Tobago, Finance Minister Colm Imbert has called for bipartisan support for newly proposed legislation that aims to rectify the country’s standing on the blacklist. He introduced the Miscellaneous Provisions (Global Forum) Bill 2024 on September 13, emphasizing the necessity of implementing the recommendations from the EU Global Facility on Anti-Money Laundering and Countering the Financing of Terrorism, following a review of the nation’s tax transparency laws.
“We risk remaining on the blacklist if we do not align with the EU’s recommendations,” Imbert warned previously.
USVI Governor Albert Bryan has also been vocal about the territory’s unjust classification, advocating for its removal from the list since 2019. Anguilla was added to the blacklist in 2022 due to concerns over its facilitation of offshore structures without significant economic activity.
On a positive note, Antigua and Barbuda successfully removed itself from the blacklist as of October 8, after making necessary updates to its legal framework. The Global Forum has granted the country a supplementary review, with future evaluations anticipated.
Established in 2017 in response to scandals like the Panama Papers, the EU’s tax haven blacklist aims to combat tax evasion. The list undergoes biannual updates, with the next revision expected in February 2025.
What are the Listing Criteria?
Jurisdictions are evaluated against specific criteria to determine their cooperation on tax matters, as set by the EU Council.
These criteria are designed to adapt over time to maintain alignment with international standards for tax governance, which are mainly developed through the Organisation for Economic Co-operation and Development (OECD) forums, including the Global Forum on transparency and exchange of information for tax purposes, the forum on harmful tax practices, and the inclusive framework on base erosion and profit shifting.
Key criteria include tax transparency, equitable taxation, and the implementation of anti-base erosion and profit shifting measures.
