The EU has released blacklist of 17 countries which are said to be tax havens not doing enough to cope with offshore avoidance schemes. Among these countries there are the United Arab Emirates, Bahrain, Tunisia, Panama, South Korea, Macau, Barbados, and some others. They will have restrictions in receiving EU funding and investments, and maybe the sanctions of the EU member states.
Some other jurisdictions, among them the British Virgin Islands, Bahamas, Antigua and Barbuda, also failed to comply with the EU standards, but got a temporary pass because they severely suffered from this year’s hurricanes and may not currently have the needed infrastructure. According to the EU statement, they have to deal with the problems until early 2018, not to be blacklisted.
The list was made based on three main components: tax transparency, fair tax competition and implementation of Base Erosion and Profit Shifting (BEPS), which is a way of battling tax avoidance created by the OECD. It is stated that the goal of the list is to ensure that the EU partners adhere to the same tax standards as the European Union itself.