Portugal’s Finance Minister Joao Leao, who is the EU’s incumbent president, made a statement after the meeting held by the finance ministers of the EU member countries via videoconference.
indicating that the updated blacklist of non-cooperative countries, including the EU tax zone, Leao said Turkey said the decision to add to the list.
Leao, “Turkey is not included in the list. It was added to the list because we have made progress in cooperation in the tax area with Turkey,” he said.
The EU’s non-tax cooperation list, updated last October, includes American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, the US Virgin Islands, Vanuatu and the Seychelles.
The EU began the process of determining the “list of tax havens” in 2017, when it was revealed that many companies and individuals were evading taxes by using accounts abroad. During the compilation of the list to combat tax evasion, the tax systems of several countries were examined.
If the tax practices of one country allow the tax evasion of another country, they are blacklisted by the EU. Countries that have committed to reforms to remedy the situation are removed from the black list. The list is updated every year in February and October. The financial transactions of the blacklisted countries with the EU are more strictly controlled.
EU member states are not included on the fiscal blacklist, assuming they “act in accordance with fiscal rules.” It should be noted that EU countries offering attractive tax opportunities such as Luxembourg, Malta, the Netherlands, Ireland and the Greek Cypriot Administration are not included in the list.