Cayman added to EU Blacklist

The European Union has added the Cayman Islands, together with Palau, Panama and the Seychelles, to its list of non-cooperative tax jurisdictions at a meeting of the bloc’s finance ministers on Tuesday.

In a press statement, the EU said, “These jurisdictions did not implement the tax reforms to which they had committed by the agreed deadline.”

The Cayman Islands had committed to address by the end of last year EU concerns over economic substance in the area of collective investment funds.

At the last review of the list in March 2019, the European body concluded that Cayman, as well as the Bahamas and the British Virgin Islands, needed further technical guidance from the EU Code of Conduct Group on Business Taxation and had until the end of 2019 to adapt local legislation.