The Cayman Islands, a British overseas territory, has been put on an EU blacklist of tax havens, less than two weeks after the UK’s withdrawal from the bloc. In a clear indication of the country’s loss of influence on the EU’s decision-making, the bloc’s 27 finance ministers signed off on the decision today.
The European Union also added Panama, the Seychelles and Palau to its blacklist of tax havens and jurisdictions. Turkey however got more time to avoid listing despite shortfalls, according to an EU document. The list, which was set up in 2017 after revelations of widespread tax evasion and avoidance schemes, now includes 12 jurisdictions. The other listed jurisdictions are Fiji, Oman, Samoa, Trinidad and Tobago, Vanuatu and the three US territories of American Samoa, Guam, and the US Virgin Islands.
The EU’s blacklist is an attempt to clamp down on the estimated £506bn lost to aggressive tax avoidance every year but member states are not “screened” in the process of drawing up the blacklist.
Territories linked to member states have also avoided the blacklist and the UK had heavily lobbied to protect its overseas territories from such scrutiny in the past.
The Cayman Islands join Oman, Fiji, and Vanuatu, making it the first UK overseas territory to be named and shamed by Brussels for failing to crack down on tax abuse.
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