The Council of the European Union yesterday confirmed by a press release that it has added Barbados to a category of non-compliant tax jurisdictions.
In addition to Barbados, the EU Council will add Anguilla, a British Overseas Territory, to the blacklist of tax havens, which already includes Trinidad and Tobago and the US Virgin Islands.
“The Council today (October 6) decided to add Anguilla and Barbados to the EU list of non-cooperative jurisdictions for tax purposes,” a press release read in part.
“Anguilla and Barbados were included in the EU list following peer review reports published by the Global Forum on Transparency and Exchange of Information for Tax Purposes, which downgraded the ratings of Anguilla and Barbados, respectively, to “non-compliant” and “partially compliant” with the international standard on transparency and exchange of information on request (EOIR),” the document added.
At the same time, the EU Council has removed the Cayman Islands from the list of non-compliant tax jurisdictions, praising it for passing the necessary reforms to improve its tax policy framework. Just last month, the British Overseas Territory amended its framework on Collective Investment Funds.
The council noted that the EU list of non-cooperative jurisdictions for tax purposes forms part of the economic bloc’s external strategy for taxation that aims to promote proper tax governance — tax transparency, fair taxation and implementation of international standards against tax base erosion and profit shifting.
As such the list comprises non-EU jurisdictions that either have not engaged in a constructive dialogue with the EU on tax governance or have failed to deliver on their commitments to implement reforms to comply with a set of objective tax good governance criteria.