What is the Blacklist of Tax Havens?
The EU’s list of non-cooperative tax jurisdictions was first published in 2017 with the aim to improve tax governance globally and ensure that the countries that maintain partnership relationships with the EU adhere to the same transparency and fair tax competition standards.
The selected indicators that are taken into account when assessing non-cooperative tax jurisdictions include the following three dimensions:
- Strength of economic ties with the EU;
- Financial activities (e.g., whether the country has a high level of financial services exports or a disconnection between their financial activity and the real economic state); and
- Stability factors (e.g., whether the jurisdiction would be considered a safe place for tax dodgers).
The main risk indicators that trigger the country’s inclusion in the blacklist are lack of international tax information exchange mechanisms, the existence of preferential tax regimes, and 0% personal income or corporate tax rate.
So which are now the black sheeps?
American Samoa, Cayman Islands, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, U.S. Virgin Islands and Vanuatu.