EU puts Cayman Islands on tax haven blacklist
February 19, 2020 11:55 am
The European Union has added the Cayman Islands, a UK overseas territory, to its tax havens blacklist. [Source: BBC]
The European Union has added the Cayman Islands, a UK overseas territory, to its tax havens blacklist.
It joins Oman, Fiji and Vanuatu, which have also been accused of failing to crack down on tax abuse.
Oxfam, which lobbies for tax reform, said the EU’s move was “encouraging” but many more places should be blacklisted.
As well as the Cayman Islands, additions this year include Panama, Palau and the Seychelles.
The EU said the Cayman Islands, which has no income tax, capital gains tax or corporation tax, does not have “appropriate measures” in place to prevent tax abuse, allowing firms to register there despite having minimal presence in the territory.
The jurisdiction was previously on a ”grey list” that gave it time to introduce new laws to tackle tax deficiencies. But it did not implement the “economic substance” reforms by the deadline as promised, the EU said.