The European Commission today announced changes to the EU's list of “non-cooperative jurisdictions” in tax matters.
As noted in today’s EC release:
The EU's list is intended, among other items, to address efforts to prevent tax avoidance and tax evasion.
Since the list was first published on 5 December 2017, Bahrain, the Marshall Islands, and Saint Lucia made commitments to address EU concerns. The EC release states that implementation of their commitments will be “carefully monitored.”
When the list was first published, the screening of the tax systems of Caribbean jurisdictions was put on hold in light of the effects of hurricanes in September 2017. The process was restarted in January 2018, when letters were sent requesting commitments to address EU concerns. The Bahamas, Saint Kitts and Nevis, and the U.S. Virgin Islands were added to the list because they failed to make commitments "at a high political level" in response to all of the EU's concerns.
At the same time, action has been taken concerning Anguilla, Antigua and Barbuda, the British Virgin Islands, and Dominica in light of commitments made to address deficiencies identified by the EU. Those commitments have been assessed, and implementation will be carefully monitored.
The process continues with regard to an eighth Caribbean jurisdiction—the Turks and Caicos Islands—from which a commitment at a high political level is being sought by 31 March 2018 to address EU concerns.
Read a March 2018 report prepared by KPMG’s EU Tax Centre
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.