Tax heavens. Eight countries removed from EU tax haven blacklist

Tax heavens. Eight countries removed from EU tax haven blacklist

Eight countries have been removed from the blacklist of tax havens, created by the European Union after several scandals of tax evasion, including the “Paradise Papers”. These eight countries, including Panama, were on a gray list in exchange for written commitments.

The 28 finance ministers of the European Union have decided to remove eight countries from their blacklist of tax havens, including Panama, at a meeting on Tuesday the 23rd January in Brussels. This list was established in the wake of the revelations on the “Paradise Papers”.

The “Eight countries” (Barbados, Grenada, South Korea, Macau (a Chinese autonomous region), Mongolia, Panama, Tunisia and the United Arab Emirates) have been removed from the black list after pledging to address the country’s concerns. ‘EU’ announced the Council of Finance Ministers of the Union in a statement.

Nine countries still blacklisted

As a result, only 9 countries remain on this blacklist, adopted on 5 December 2017, the first in the history of the European Union, following the revelations of a series of tax evasion scandals for example “LuxLeaks” at the end of 2014, “Panama Papers” in April 2016 and “Paradise Papers” in November 2017.

However, this list only concerns jurisdictions outside the EU. The remaining nine blacklisted countries are Bahrain, Guam, Marshall Islands, Namibia, Palau, Samoa, American Samoa, St. Lucia and Trinidad and Tobago.

The eight countries removed from the blacklist have been placed on a gray list, because they have made commitments of good behavior in tax matters and will be monitored.

Written commitments

In the statement was announced that for each of the eight countries withdrawn, the authorities provided commitments “by letters signed at a very high level”.

“The blacklist works”, said Vladislav Goranov, Bulgarian Finance Minister, whose country holds the rotating presidency of the Union for six months. As he explained the countries concerned “have worked hard to commit themselves to reform their fiscal policy”.

The same is true of the French Finance Minister, Bruno Le Maire, who reacted on Twitter: “Blacklist of tax havens: European pressure has brought its first results”!

Written by Vincent Ashton