close
Share with your friends

EU: Updated “blacklist” of non-cooperative jurisdictions

EU: “Blacklist” of non-cooperative jurisdictions

The European Union as of 18 February 2020 added four jurisdictions—the Cayman Islands, Palau, Panama and Seychelles—to the EU list of non-cooperative jurisdictions, the “blacklist.”

1000

Related content

Therefore, the current EU blacklist is composed of 12 jurisdictions: American Samoa, the Cayman Islands, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the U.S. Virgin Islands and Vanuatu.

In total, 19 jurisdictions were removed from the grey list of non-cooperative jurisdictions since it was last published in December 2019. While three of the jurisdictions (the Cayman Islands, Palau, and Seychelles) were added to the blacklist, 16 jurisdictions—Antigua and Barbuda, Armenia, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cabo Verde, Cook Islands, Curacao, Marshall Islands, Montenegro, Nauru, Niue, Saint Kitts and Nevis, and Vietnam—were found to have fulfilled their commitments within the 2019 deadline and were removed from the grey list.

Read a February 2020 report prepared by KPMG’s EU Tax Centre


Effects of EU blacklist of “tax haven” jurisdictions

The EU blacklist has implications for jurisdictions including sanctions. First, the EU list is linked to EU funding; funds from certain programs cannot be channeled through entities in listed countries.

Second, there is a direct link to the EU list with regard to EU transparency requirements for intermediaries (for instance, a tax scheme routed through an EU listed country will be automatically reportable to tax authorities).  Further, EU Member States have agreed on sanctions to apply at the national level against the listed jurisdictions. These include measures such as increased monitoring and audits, withholding taxes, special documentation requirements and anti-abuse provisions. Read an EC release (March 2019).

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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal