EU: Changes to list of “non-cooperative jurisdictions” | KPMG | GLOBAL

EU: Changes to list of “non-cooperative jurisdictions” in tax matters

EU: Changes to list of “non-cooperative jurisdictions”

The European Commission today announced changes to the EU's list of “non-cooperative jurisdictions” in tax matters.

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As noted in today’s EC release:

  • Bahrain, the Marshall Islands, and Saint Lucia have been removed from the list.
  • The Bahamas, Saint Kitts and Nevis, and the U.S. Virgin Islands have been added to the list.

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.”

Three jurisdictions added

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

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