EU Non-Cooperative Jurisdictions List
The EU list of non-cooperative jurisdictions was introduced by the EU as a tool to tackle:
Tax fraud or evasion: illegal non-payment or under payment of tax;
Tax avoidance: use of legal means to minimise tax liability; and
Money laundering: concealment of origins of illegally obtained money.
It operates by requiring jurisdictions to modify their taxation laws and practices to conform to the EU’s interpretation of international standards, as determined by the Council’s Code of Conduct Group.
The list currently comprises non-EU countries that are judged to encourage abusive tax practices, which the EU considers could erode member states' corporate tax revenues.
AIMA welcomes the decision of the Council of the European Union to remove the Cayman Islands from the EU list of non-cooperative jurisdictions for tax purposes. The full review process carried out by the Council’s Code of Conduct Group (CoCG) since 2018 determined that, by enacting economic substance legislation in line with OECD requirements, the Cayman Islands satisfied the Council’s criteria in line with international tax standards in all respects.
The next revision of the list is due in October 2021.
The criteria for listing are proposed to be extended to include the establishment and operation of beneficial ownership registers. Further countries, including EU member states, are also proposed to be subject to review.
(Last updated: 29 June 2021)