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The EU Council has released a list of “non-cooperative jurisdictions for tax purposes”, which includes four Caribbean territories: Barbados, Grenada, St. Lucia and Trinidad and Tobago. The reason for inclusion on list, according to the EU, is cited in the table:

According to the EU Council, inclusion on the “blacklist” is expected to have a dissuasive effect that encourages the affected jurisdictions to comply with the relevant international tax standards. The Council also set out a list a “Defensive Measures” which EU members may take against “blacklisted” jurisdictions to encourage compliance including, but not limited to:

· Special documentation requirements;
· Reinforced monitoring;
· Increased audit risks for taxpayers benefiting/using structures or arrangements in
“blacklisted territories;
· Controlled Foreign Company rules; and
· Non-deductibility of costs.

Eight additional Caribbean territories (Anguilla, Antigua and Barbuda, Bahamas, British Virgin Islands, Dominica, Saint Kitts and Nevis, Turks and Caicos Islands and US Virgin Islands) have been excluded from the list due to the impact of the 2017 hurricane season. These territories are given until February 2018 to express their commitment to resolving the EU Council’s concerns by the end of 2018.