This Caribbean nation was included on the list due to its failure to implement the recommendations made by the Organization for Economic Cooperation and Development (OECD) Global Forum on Transparency and Information Exchange, which recently called the Caribbean country's tax policy "partially compliant."
Barbados, which was taken off from the list after the OECD gave it the "supplementary review" status, will be listed in Annex I, which includes territories that have made commitments to implement good tax governance, although they do not meet all international tax standards yet.
Currently, the EU tax havens list includes Anguilla, Dominica, Fiji, Guam, Palau, Panama, Samoa, Seychelles, Trinidad and Tobago, U.S. Virgin Islands, and Vanuatu. Its Annex I comprises Australia, Barbados, Botswana, Eswatini, Jamaica, Jordan, Maldives, Thailand, and Turkey.
EU launches threat to Boris as MEPs vote to blacklist UK overseas territoriesMEPs have voted to add British overseas territories to a tax haven blacklist as part of a crackdown on the UK after #Brexit. pic.twitter.com/rBJVaKsL16
To define a jurisdiction as a tax haven, the European institutions consider whether that jurisdiction implements the OECD recommendations related to fiscal transparency policies and justice.
The first list was approved in Dec. 2017 and included 17 territories. Since Feb. 2020, the list should be updated twice a year.
If a jurisdiction is listed as a tax haven, it losses access to EU funds. Also, European taxpayers executing operations with companies in the listed territories are subject to special control, which implies more audits and monitoring of their transactions.