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A new blacklist by the EU list 17 countries responsible for offering tax avoiding schemes

A new blacklist by the EU list 17 countries responsible for offering tax avoiding schemes

The European Union on Tuesday 5 December compiled a blacklist constituted by 17 non-EU countries considered responsible for offering tax avoidance schemes.

Here is the list:

  • American Samoa
  • Bahrain
  • Barbados
  • Grenada
  • Guam
  • South Korea
  • Macau
  • Marshall Islands
  • Mongolia
  • Namibia
  • Palau
  • Panama
  • St. Lucia
  • Samoa
  • Trinidad & Tobago
  • Tunisia
  • United Arab Emirates

No surprises for countries like Panama, characterised by recent scandals such as the so-called Panama Papers. Not even Trinidad & Tobago which was the only country blacklisted by the FMI in 2016.

EUThe EU’s penalties on the blacklisted countries still need to be confirmed.

Some surprises are constituted by South Korea, a traditional business partner for the EU as well as Tunisia. Another tricky country is the UAE.

The list suffered from criticism because it is missing some EU countries such as Ireland, Luxembourg, Cyprus, Malta and the Netherlands, all accused of practising too favourable tax conditions to some big corporations (think of the recent case Apple-Ireland, where the EU has been forcing the Irish Republic to withdraw the agreement and increase taxation on the American giant). Also Switzerland is missing from the list. However, these countries are part of a grey-list composed in total by 47 countries that are not compliant with EU standards but have committed to change their tax rules soon.

Some observers claim that the list is too soft. It should have been including other countries such as Morocco or Qatar. Probably in the future there will be a longer list, with more restrictions, if the countries currently on the grey-list won’t adhere to the strong fiscal restrictions imposed by Bruxelles eurocrats.

On this light, it’s clear that compliant countries such as Italy are among the best solutions to attract non-resident HNWI thanks to the flat tax regime. Italy assures the maximum compliance with European laws and at the same time guarantee a substantial saving on taxes thanks to its favourable conditions.

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