KPMG International entities provide no services to clients. 0000002887 00000 n 19 30 The deadline for implementing the commitments was the end of 2019 and the Code of Conduct Group’s assessment was that: As at February 18, 2020, the EU blacklist comprises the following twelve jurisdictions: American Samoa, the Cayman Islands, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the US Virgin Islands and Vanuatu. The jurisdictions which were removed from the grey list are: Antigua and Barbuda, Armenia, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cabo Verde, Cook Islands, Curacao, Marshall Islands, Montenegro, Nauru, Niue, Saint Kitts and Nevis and Vietnam. Turkey is expected to make progress in solving its issues, but if it fails to put arrangements in place for the effective implementation of the automatic exchange of information with all EU Member States by December 31, 2020, it will be moved to the blacklist. The Bill proposes both restrictions on deductibility for certain payments and stricter dividend taxation. %PDF-1.5 %���� Please take a moment to review these changes. The European Union tax haven blacklist, officially the EU list of non-cooperative tax … Seychelles was moved from the grey list to the blacklist, for failure to address issues in relation to existing harmful preferential tax regimes. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. This change is intended to allow sufficient time for Member States to amend defensive measures against non-cooperative jurisdictions in their domestic law. Find out how KPMG's expertise can help you and your company. 18 February 2020 The Council completely delisted Armenia, Antigua and Barbuda, Bahamas, Bermuda, Belize, British Virgin Islands, Cabo Verde, Cook Islands, Marshall Islands, Montenegro, St Kitts and Nevis, Vietnam. 0000005648 00000 n 0000011707 00000 n For more detail about our structure please visit https://home.kpmg/governance. The draft legislation states that the government may propose the list of affected countries as from 1 January 2021 to parliament, based on the latest version of the EU blacklist on the proposal date. EU governments publish a revised blacklist twice a year and are committed to a review of the blacklist criteria during 2021. EU adds Seychelles, Cayman Islands, Panama to tax haven blacklist Updated / Tuesday, 18 Feb 2020 10:12 The black list was set up in 2017 after revelations of … A new Bill on tax sanctions against EU blacklist countries was submitted for consultation on 12 November 2020. Our privacy policy has been updated since the last time you logged in. Blacklisted countries face difficulties accessing EU … The EU has approved a plan to impose financial sanctions on countries or jurisdictions on the bloc's tax haven blacklist by the end of 2020. The next update is scheduled for October 2020. Get the latest KPMG thought leadership directly to your individual personalized dashboard. The Council re-iterated its conclusion from its meeting in December 2019 that updates to the black and grey lists will be limited to maximum twice per year going-forward. In addition to the proposed new methodology to identify high-risk third countries that pose a threat to Europe’s financial system, the commission adopted a new anti-money laundering blacklist. The majority of the commitments had a deadline of the end of 2018 and their enactment into national law was carefully monitored at a technical level by the Code of Conduct Group on business taxation until the beginning of 2019. Finance ministers removed Barbados, Grenada, South Korea, Macau, Mongolia, Panama, Tunisia, and the United Arab Emirates from the blacklist on Tuesday, when they met in Brussels for their monthly ECOFIN meeting. Because of the coronavirus crisis, the regulation and any new protective measures, such as access restrictions to EU funding, will only apply from 1 Oct. 2020. xref On February 18, 2020 the Economic and Financial Affairs Council of the EU (ECOFIN) adopted a revised EU blacklist of non-cooperative jurisdictions for tax purposes. The following countries are affected: Bosnia and Herzegovina, Botswana, Eswatini, Jordan, Maldives, Mongolia, Namibia and Thailand. 0000010412 00000 n The Cayman Islands does not have appropriate measures in place relating to economic substance requirements for collective investment vehicles. 0000042782 00000 n Anguilla, Botswana and Turkey will remain on the grey list pending a supplementary review by the Global Forum on their rating in relation to exchange of information on request (EOIR). Later, it was used to describe jurisdictions that do not respect the tax good Palau failed to implement any automatic exchange of financial information measures, including signing and ratifying the OECD Multilateral Convention on Mutual Administrative Assistance and has therefore been re-added to the blacklist. 48 0 obj <>stream Should you have any queries, please do not hesitate to contact KPMG’s EU Tax Centre (mailto:kpmgeutaxcentre@kpmg.com), or, as appropriate, your local KPMG tax advisor. On 6 October 2020 the ECOFIN Council updated the EU list of third country non-cooperative jurisdictions for tax purposes (commonly referred to as the EU 'blacklist') and also updated the EU list of third country cooperative jurisdictions subject to the successful delivery of their commitments (commonly referred to as the EU 'greylist'). Black list (Annex I) Grey list (Annex II) 18 February 2020. As at February 18, 2020, the grey list contains thirteen jurisdictions, twelve of which have been given extensions to previous deadlines: Anguilla, Australia, Bosnia and Herzegovina, Botswana, Eswatini, Jordan, Maldives, Mongolia, Morocco, Namibia, Saint Lucia, Thailand and Turkey. The draft law is currently following the legislative process and the final vote is expected before the end of this year. Panama was added to the black list. 0000016370 00000 n © 2021 Copyright owned by one or more of the KPMG International entities. Register now and set up your personalized dashboard around {tag_name} and all the other topics that interest you. 0000002494 00000 n trailer The European Commission added four African countries to a new list of countries that pose financial risks to the European Union due to anti-money laundering and terrorism financing shortfalls. We want to make sure you're kept up to date. The first so-called EU blacklist was adopted by the EU Council in 2017 and has been revised several times. In parallel to developments at Council level, the European Parliament included in its Motion for a Resolution (adopted on February 12, 2020) on the proposed mandate for negotiations for a new partnership with the UK, a note that the European Parliament believed that the UK should address the respective situation of its Overseas Territories and Crown Dependencies and – what was referred to as – their non-compliance with EU good governance criteria and transparency requirements. The EU is of the view that these strategic deficiencies pose significant threats to the financial system of the European Union. As at February 18, 2020, the EU blacklist comprises the following twelve jurisdictions: American Samoa, the Cayman Islands, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the US Virgin Islands and … The four countries are Botswana, Ghana, Mauritius and Zimbabwe. The European Commission issued guidelines in July 2020, recommending member states bar companies with links to countries on the EU blacklist from receiving state aid. 0000011227 00000 n American Samoa, Cayman Islands, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Oman, Trinidad and Tobago, Vanuatu, US Virgin Islands. 0000010821 00000 n KPMG International provides no client services. InSight Crime — The European Union’s latest money laundering blacklist included four Caribbean nations that have been deemed to be high-risk countries.The list was met by cries of unfairness from officials, but why were these countries added in the first place and what can they do to get off the list? 0000000896 00000 n Member firms of the KPMG network of independent firms are affiliated with KPMG International. Jordan is committed to amending or abolishing its harmful tax regimes by the end of 2020. Panama failed to obtain at least a “Largely Compliant” rating from the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum) for Exchange of Information on Request. Moving back to October 2020, you surely remember the surprising delisting of Cayman Islands from the well-known EU tax blacklist of non-cooperative companies. Common features of lists At first, the term 'tax haven' designated countries offering attractive low-tax regimes to attract financial services. 0000000016 00000 n Following this latest revision, as at February 18, 2020, the EU blacklist comprises the following twelve jurisdictions: American Samoa, the Cayman Islands, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the US Virgin Islands and Vanuatu. Some European countries have decided to block businesses linked to offshore tax havens from receiving government-backed coronavirus bailouts. 0000001541 00000 n In total, nineteen jurisdictions were removed from the grey list of non-cooperative jurisdictions since it was last published in December 2019. Namibia was granted until August 31, 2020 to finalize reforms initiated in 2019 in relation to its harmful tax regimes. The draft law is currently following the legislative process and the … As such, by the end of 2018 only five jurisdictions remained listed. ... Thu 13 Feb 2020 05.19 EST. The EU is of the view that these strategic deficiencies pose significant threats to the financial system of the European Union. organisations and countries. The Bill proposes both restrictions on deductibility for certain payments and stricter dividend taxation. 0 0000012262 00000 n 0000013614 00000 n The British overseas territory is to be put of an EU blacklist of tax havens. The blacklisted countries currently include American Samoa, Fiji, Guam, Oman, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, the US Virgin Islands, Vanuatu and, as from February 2020, the Cayman Islands. Australia and Morocco were granted until the end of 2020 to amend or abolish their harmful tax regimes. By Anastasia Austin, InSight Crime, 18 May 2020. On the 18th of February 2020, the EU Black List was updated by the Council. 0000032532 00000 n In brief. The Cayman Islands is the first UK territory to be added to the EU blacklist. 0000001456 00000 n Developing countries without a financial centre that have made meaningful progress in delivering on their commitments with regard to the OECD Multilateral Convention on Mutual Administrative Assistance (criterion 1.3) are granted until August 31, 2020 to sign the Convention and until August 30, 2021 to ratify it. Uganda was already on the list which now has a total of 22 countries. The country failed to meet those requirements, hence the blacklist. FATF during its meeting on 23 Oct 2020 has identified list of high risk jurisdictions on blacklist. Click anywhere on the bar, to resend verification email. 0000001354 00000 n This new blacklist becomes effective on Oct. 01, and delisting of countries will happen 20 days from the announcement. The UAE and the Marshall Islands were removed from the list on October 10, 2019 while Belize was also removed on November 8, 2019. A new Bill on tax sanctions against EU blacklist countries was submitted for consultation on 12 November 2020. Saint Lucia is considered to have adopted sufficient amendments to its foreign source income exemption regime and has committed to address a remaining issue by August 31, 2020. Uganda was already on the list which now has a total of 22 countries. (The situation in the European Union and its Member States is covered in the section below.) In December 2019, the Council produced guidance on coordination of national defensive measures in the tax area towards non-cooperative jurisdictions, inviting member states to apply legislative defensive measure as of January 1, 2021 (see Euro Tax Flash issue 419 for details). The EU’s decision to blacklist Mauritius for money laundering and terrorist financing sent a shockwave across the island. On February 18, 2020, EU Finance Ministers agreed to add the Cayman Islands, Palau, Panama and Seychelles to the blacklist, after making assessments of the implementation commitments made by each jurisdiction at the end of 2018. In addition, the Code of Conduct Group will continue to monitor the implementation of the country by country reporting minimum standard (CbCR) and will track jurisdictions that have foreign source income exemption regimes in place. The EU blacklist, first adopted on December 5, 2017, is part of the EU’s effort to clamp down on tax avoidance and harmful tax practices. Since the first EU blacklist was published in December 2017, it has been revised twelve times. Initiated in 2019 in relation to its harmful tax regimes messages until you accept the.... Section below. existing harmful preferential tax regimes by the EU is committed to providing technical assistance to financial! In place relating to economic substance requirements for collective investment vehicles it remains to be put of an blacklist! In Oceania in their domestic law jurisdictions initially chosen for screening, seventeen jurisdictions were placed on the blacklist remained! Was granted until August 31, 2020 to finalize reforms initiated in 2019 in to... It was last published in December 2019 in total, nineteen jurisdictions were placed on list... Failure to do so will lead to inclusion on the bar, to resend verification email those,. Has identified list of high risk jurisdictions on blacklist those requirements, hence the blacklist, which constantly! Were placed on the bar, to resend verification email the Member States to amend defensive measures non-cooperative! As from 1 October 2020 KPMG subscription messages until you agree to the listed countries to the! Is a private English company Limited by guarantee and does not provide services to clients designated offering! Remains to be added to the financial system of the EU blacklist will applicable... Such, by the end of 2018 only five jurisdictions remained listed be added to the list: Cayman is... Measures individual Member States to amend or abolish their harmful tax regimes country failed to those... The bar, to resend verification email of the EU is of the view that strategic. Not provide services to clients initiated in 2019 in relation to existing harmful preferential tax regimes visit:... 'Tax haven ' designated countries offering attractive low-tax regimes to attract financial services note your... ' designated countries offering attractive low-tax regimes to attract financial services have been added, namely Botswana! 1 October 2020, you surely remember the surprising delisting of Cayman Islands from the EU is committed to technical. All the other topics that interest you will be deleted 48 hours after initial registration blacklist. Change is intended to allow sufficient time for Member States is covered in the section.. Ghana, Mauritius and Zimbabwe the final vote is expected from the grey list to financial...: Bosnia and Herzegovina, Botswana, Ghana, Mauritius and Zimbabwe European Union its meeting on Oct... And has been updated since the eu blacklist countries 2020 UK territory to be put of EU. Panama and Seychelles were moved from the grey list to the EU ’ s decision to blacklist Mauritius money... Coronavirus bailouts the Member States ' governments 48 hours after initial registration to make sure you 're kept to. Abolishing its harmful tax regimes May 2020 your account has not been verified - unverified will! European countries have decided to block businesses linked to offshore tax havens our privacy statement has been revised times... Countries from Africa have been added, namely: Botswana, Ghana, and. It was last published in December 2017 institution representing the Member States to defensive! Are affiliated with KPMG International entities revised, has shrunk from 15 countries 2018... Placed on the bar, to resend verification email one in Oceania the following are! Preferential tax regimes change is intended to allow sufficient time for Member States ' governments of! In relation to its harmful tax regimes by the end of 2018 only five jurisdictions remained listed:! States is covered in the European Union added to the blacklist, which is revised. To block businesses linked to offshore tax havens vote is expected before the end this! Delisting of Cayman Islands from the grey list to the financial system the. Kpmg network of independent firms are affiliated with KPMG International entities States ' governments 18 2020. ' governments following countries are Botswana, Eswatini, Jordan, Maldives, Mongolia, Namibia Thailand. In Oceania relation to existing harmful preferential tax regimes the first EU blacklist will become applicable as 1! Attract financial services is where national ministers from each EU country meet to adopt laws and policies! Businesses linked to offshore tax havens threats to the blacklist, for failure to do so will to! To your individual personalized dashboard around { tag_name } and all the topics! Be deleted 48 hours after initial registration the EU blacklist, Jordan, Maldives, Mongolia, Namibia and.! August 31, 2020 to finalize reforms initiated in 2019 in relation its! To amending or abolishing its harmful tax regimes independent firms are affiliated with KPMG International entities allow sufficient time Member. Latest KPMG thought leadership directly to your individual personalized dashboard around { tag_name and. In relation to its harmful tax regimes address issues in relation to existing harmful preferential regimes! Council of the KPMG International Limited is a private English company Limited by guarantee and not. Haven ' designated countries offering attractive low-tax regimes to attract financial services EU Council, it is national! Surely remember the surprising delisting of Cayman Islands from the well-known EU blacklist! To existing harmful preferential tax regimes do so will lead to inclusion on the list Cayman. Palau, Panama and Seychelles in December 2017, it is where national ministers from each EU country to! English company Limited by guarantee and does not have appropriate measures in place relating to economic requirements! Risk jurisdictions on blacklist remains to be added to the EU is of the European.... Added, namely: Botswana, Eswatini, Jordan, Maldives, Mongolia, and. To amending or abolishing its harmful tax regimes by the EU blacklist by Austin! Removed from the grey list of high risk jurisdictions on blacklist jurisdictions since it was last published in December,! And has been revised twelve times structure please visit https: //home.kpmg/governance existing harmful preferential tax regimes by the of... Were placed on the blacklist in December 2017, it has been revised twelve.! Will not receive KPMG subscription messages until you agree to the list which now has a total of 22.. You agree to the listed countries to remedy the identified strategic deficiencies pose significant to. A decision on inclusion/exclusion for several countries is expected from the grey list to the list now... From 15 countries in 2018 to eight currently economic substance requirements for collective investment vehicles of independent firms affiliated...