The EU has removed Bahrain, the Marshall Islands and Saint Lucia from its list of non-cooperative jurisdictions in taxation matters and added the Bahamas, Saint Kitts and Nevis and the US Virgin Islands.
Since the list was first published on 5 December 2017, Bahrain, the Marshall Islands and Saint Lucia have made commitments at a high political level to remedy EU concerns. In the light of an assessment of those commitments, the EU Council decided to remove the three jurisdictions, however the implementation of their commitments will be carefully monitored.
When it first published the list, the Council agreed to put on hold a screening of the tax systems of Caribbean jurisdictions that were struck by hurricanes in September 2017. The process was restarted in January 2018, when letters were sent requesting commitments to remedy EU concerns.
The Bahamas, Saint Kitts and Nevis and the US Virgin Islands are added to the list as a result of that process. This is because they have failed to make commitments at a high political level in response to all of the EU's concerns.
At the same time, the Council decided to monitor Anguilla, Antigua and Barbuda, the British Virgin Islands and Dominica. This was justified by commitments made to address deficiencies identified by the EU.
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.
The decisions were taken at a meeting of the Economic and Financial Affairs Council, without discussion.
As a result, nine jurisdictions remain on the EU list: American Samoa, Bahamas, Guam, Namibia, Palau, Samoa, Saint Kitts and Nevis, Trinidad and Tobago and the US Virgin Islands.
|RATE THIS ARTICLE|
THIS WEEK'S TOP STORIES
PAM (Private Asset Managers) and its sister website PAMonline combine to provide "...the best guide available to the leading firms in private client fund management" (FINANCIAL TIMES). PAM compares managers on a level playing field by key data such as fees and charges, minimum investment thresholds and so on.