The EU’s finance ministers are set to remove three countries currently on the bloc’s tax haven blacklist.
Bermuda, which is a British overseas territory; the Dutch Caribbean island of Aruba, and Barbados will be de-listed ahead of an ECOFIN meeting of Europen finance ministers, according to an EU official. The three islands have been on the EU’s embargoed list since March due to shortfalls in their tax rules that serve as a loophole for money laundering schemes.
Under the EU’s fair corporate tax criteria, a company should have some “economic substance” in the relevant territory and must not be a letterbox firm that has been set up to take advantage of low or zero taxation status.
Brussels’ blacklist will still contain 12 countries The countries removed from the list will be placed on halfway ‘grey list’ that will continue to be under tight scrutiny from the EU but will no longer be subject to sanctions.