On 5 December 2017, the European Union (EU) published a list of non-cooperative jurisdictions for tax purposes (‘the EU Blacklist’). The list includes countries that do not meet certain minimum standards in corporate tax governance and tax transparency. Entities based in jurisdictions on the EU Blacklist will be subject to measures to be adopted by EU Member States from a range of counter measures under development by the European Commission (EC).
Proposals for an EU Blacklist of non-cooperative jurisdictions were first announced by the EU in January 2016 as part of a broader package of measures which sought to achieve “a coordinated EU wide response to corporate tax avoidance”.
The Blacklist is designed to strongly encourage included jurisdictions to make changes to their tax regimes by adopting internationally recognised measures that should reduce potential harm to the EU tax base. The measures, related to corporate tax governance and tax transparency, should reduce the possibility of their tax regime facilitating tax fraud, evasion or avoidance activities by EU residents.