EU experts have decided to extend the blacklist of tax havens to the Bahamas and the United States Virgin Islands. The change is now pending acceptance by the relevant EU authorities.
Tax havens are the common definition of countries applying harmful tax competition. Most often they are “state mini-minis” who want to attract large companies with a very low income tax rate. The setting of a CIT tax of several percent may lead the company to formally transfer its seat there with billions of savings. This operation is, of course, to the detriment of another country.
In addition to the black list of tax havens, there is also a so-called "gray list". These are countries whose tax law does not meet the European Union's standards on harmful tax competition, but with the exception that these countries have committed themselves to end harmful practices.
The grey list primarily represents image losses for the countries on which it is located. Moreover, it is possible to place a country on the list of "black" if it does not comply with its obligations to adapt tax law to standards recognised by the EU.
Author:
Expert Russell Bedford.