The European Union continues to scrutinize global tax systems and their adherence to international standards, with member states recently adding and removing countries from their list of jurisdictions deemed non-compliant with these standards, according to an announcement by the council of EU member states.
The council’s meeting in Luxembourg resulted in the inclusion of Antigua and Barbuda, Belize, and Seychelles on the list, attributing their addition to shortcomings in their systems for exchanging tax information upon request.
On the flip side, the council decided to remove the British Virgin Islands, Costa Rica, and the Marshall Islands from the list. The British Virgin Islands’ removal was due to adjustments in its information exchange processes, while Costa Rica was taken off the list after addressing the “harmful aspects” of its foreign source income exemption regimen. The Marshall Islands, too, demonstrated significant progress in enforcing economic substance rules, warranting its removal from the list.
