EU: Updated “blacklist” of non-cooperative jurisdictions

EU: Updated blacklist of non-cooperative jurisdictions

The European Union on 6 October 2020 adopted a revised list of non-cooperative jurisdictions (the “blacklist”) that added two jurisdictions and removed two jurisdictions.

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The jurisdictions added to the blacklist are Anguilla and Barbados, while the Cayman Islands and Oman were removed from the list. Therefore, the current EU blacklist is composed of 12 jurisdictions: American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the U.S. Virgin Islands, and Vanuatu.

Mongolia and Bosnia and Herzegovina were removed from the "grey list" of non-cooperative jurisdictions, which now contains 10 jurisdictions.

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 October 2020 report prepared by KPMG’s EU Tax Centre

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