Anguilla, The Bahamas and Turks and Caicos have been added to the EU’s list of non-cooperative jurisdictions. These three jurisdictions apply a zero-tax offshore regime. They have been added to the EU’s black-list in view of the fact that they have failed to enforce the economic substance requirements.
The current EU blacklist consist of the following 12 jurisdictions: American Samoa, Anguilla, Bahamas, Fiji, Guam, Palau, Panama, Samoa, Trinidad & Tobago, Turks & Caicos, US Virgin Islands, and Vanuatu
What does it mean to be included in the EU blacklist?
The EU discourages its Member States to do business with countries included in their blacklist. As a result, these countries will likely experience a decrease in direct foreign investment coming from EU Member States. EU entities are obliged to report to their tax authorities any transactions which are carried out with blacklisted countries. Transactions are subject to greater scrutiny and subject persons based in the EU dealing with such countries are required to conduct enhanced due diligence. Maltese companies are also obliged to report transactions with EU blacklisted countries in their corporate tax return.
The EU is working to promote and strengthen tax good governance mechanisms, fair taxation, and global tax transparency in order to tackle tax fraud, evasion and avoidance. The aim of this blacklist is to encourage positive change in their tax legislation and practices, through cooperation.
For further information, please contact:
Franco Falzon C.P.A. LL.M (Managing Director)
T: +356 2010 7771 (office)
M: +356 9989 5679 (mobile)
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