On 8 November 2016, the Council agreed on the criteria and guidelines for selecting and screening third countries with a view to establish an EU list of non-cooperative jurisdictions in tax matters. The broader aim of the initiative is to combat tax base erosion and profit shifting (‘BEPS’).
According to the Council Conclusions on the criteria for and process leading to the establishment of the EU list of non-cooperative jurisdictions for tax purposes (available here), the countries selected for screening will be assessed cumulatively under three criteria, namely:
Screening is due to be completed by September 2017, so that the Council can endorse the list of non-cooperative jurisdictions by the end of 2017. Screening is intended to be a continuous and regular process. Discussions with jurisdictions aimed at resolving concerns and agreeing on commitments are expected to take place by the summer of 2017.
- Tax transparency, which involves the effective implementation and compliance with the OECD Automatic Exchange of Information (‘AEOI’) standard, the OECD Exchange of Information on Request (‘EOIR’) standard, ratification of or participation in the OECD Multilateral Convention on Mutual Administrative Assistance in tax matters, and implementation of a network of exchange arrangements covering all Member States, allowing for both AEOI and EOIR;
- Fair taxation, which entails the absence of preferential tax measures that could be regarded as harmful and absence of offshore structures or arrangements aimed at attracting profits which do not reflect real economic activity; and
- implementation of minimum anti-BEPS measures.
This article appears in the JHA November 2016 Tax Newsletter, which also features:
- Court of Appeal Judgment in The Test Claimants in the Franked Investment Income Group Litigation v HMRC [2016] EWCA Civ 1180 by Cristiana Bulbuc
- Chancellor’s Autumn Statement by Steve Bousher and Helen McGhee
- C-68/15 X – Attorney General’s Opinion on Belgian “fairness tax” by Christopher Kientzler
