EU removes countries from tax haven list

THE European Union removed eight countries including Panama from its new tax haven blacklist yesterday after they pledged to address its concerns, in a move swiftly condemned by activists.

The United Arab Emirates, Tunisia, Mongolia, Macau, Grenada and Barbados were also lifted from the list by finance ministers, in a move that comes just weeks after the bloc unveiled its original list of 17 non-EU nations.

The decision drew criticism from campaigners including Oxfam who say the EU’s commitment to tackle tax avoidance after the “Panama Papers” leak last year has now been watered down.

“Eight jurisdictions have been removed from the EU’s list of non-cooperative jurisdictions for tax purposes, fol- lowing commitments made at a high political level to remedy EU concerns,” an EU statement said.

French Finance Minister Bruno Le Maire tweeted that “European pre s s ure has brought its first results!”

The eight countries will now be on a “grey list” of countries that have made unspecified commitments to the EU on reforming their tax laws.

The blacklist now covers just nine jurisdictions: American Samoa, Bahrain, Guam, Marshall Islands, Namibia, Palau, Saint Lucia, Samoa and Trinidad and Tobago.

Ministers agreed that “delisting was justified in the light of an expert assessment of the commitments made by these jurisdictions to address deficiencies identified by the EU”, the statement said.

“In each case, the commitments were backed by letters signed at a high political level.”

The lists came a year on from the leak of the “Panama Papers” – a massive amount of data from a prominent Panamanian law firm showing how the world’s wealthy stash assets.

The EU originally screened a total of 92 countries to draw up the list, which is expected to be continuously updated.

Oxfam said yesterday’s decision undercut EU efforts to get tough on tax. AFP