Based on documents seen by Bloomberg BNA, the 28 countries targeted by the EU Code of Conduct Group for Business Taxation include a range of Pacific or Caribbean nations with offshore financial centers. Among them is Belize, Grenada, Cook Islands, Montserrat, Cabo Verde, Dominica, Saint Kitts and Nevis, Macao, Saint Lucia and Samoa.
According to the confidential document, Anguilla, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man and Jersey have been cited for potential screening by the Code of Conduct group in 2017, on account of their zero tax rates.
It adds that 13 of the 28 are considered “particularly problematic due to their failure to commit to the OECD’s Inclusive Framework for implementing the minimum base erosion and profit shifting reforms”.
The directive will enable tax authorities to access information on the beneficial ownership of companies in monitoring the proper application of taxation rules.
It will thus help prevent tax evasion and tax fraud.