European Commission to draw up list of non-cooperative tax jurisdictions

European Commission to draw up list of non-cooperative tax jurisdictions

The European Commission is to draw up a first common EU list of non-cooperative tax jurisdictions based on a scoreboard

THE European Commission is to draw up a first common EU list of non-cooperative tax jurisdictions based on a scoreboard.

EU Member States will choose which countries should be screened more fully over the next few months to identify the countries which fail to comply with tax rules.

In January 2016, the Commission launched a three-step process for establishing the common EU list as part of its broader agenda to curb tax evasion and avoidance.

The aim is to publish the definitive list of non-cooperative jurisdictions by the end of 2017. Member States have already given their backing to this approach, which is also strongly supported by the European Parliament.

Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs said: “The EU takes its international tax good governance commitments seriously. It is reasonable for us to expect the same from our international partners. We want to have fair and open discussions with our partners on tax issues that concern us all in the global community. The EU list will be our tool to deal with third countries that refuse to play fair.”

The aim of the Commission’s scoreboard is to help Member States to determine which countries the EU should start a dialogue with regarding tax good governance issues.

The scoreboard presents factual information on every country under three neutral indicators: economic ties to the EU, financial activity and stability factors. The jurisdictions that feature strongly in these three categories are then set against risk indicators, such as their level of transparency or potential use of preferential tax regimes.

The common EU list is intended as a “last resort” option. It will be a tool to deal with third countries that refuse to respect tax good governance principles, when all other attempts to engage with these countries have failed.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

2m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

3m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

3m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Which UK town has the most tax avoidance?

Tax Avoidance Which UK town has the most tax avoidance?

4m Beth McLoughlin, Managing Editor
Autumn Statement: tax gap under further attack

Corporate Finance Autumn Statement: tax gap under further attack

10m Stephanie Wix, Writer
Incoming FCA chair admits “error in judgement” over investment in tax avoidance scheme

HMRC Incoming FCA chair admits “error in judgement” over investment in tax avoidance scheme

1y Alia Shoaib, Reporter
EU parliament to launch tax inquiry in the wake of the Paradise Papers

Legal EU parliament to launch tax inquiry in the wake of the Paradise Papers

1y Alia Shoaib, Reporter
Paradise Papers: The role of the accountant

HMRC Paradise Papers: The role of the accountant

2y Alia Shoaib, Reporter
HMRC triumphs over tax avoidance scheme expected to net £325m

HMRC HMRC triumphs over tax avoidance scheme expected to net £325m

2y Alia Shoaib, Reporter
Newcastle United tax probe: High Court rules in favour of HMRC

Tax Avoidance Newcastle United tax probe: High Court rules in favour of HMRC

2y Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2y Alia Shoaib, Reporter