On September 15, 2016 the European Commission published a
report with indicators which aims to eliminate the tax avoidance,
and indicate the non-cooperative third country tax jurisdictions.
The scoreboard offers a summary of the tax systems of third-country
jurisdictions to help EU Member States recognise which countries
may require further evaluation regarding tax governance issues.
According to the EU Commission this screening process will be
finalised by summer 2017, and later within the year the completed
list of non-cooperative jurisdictions will be released.
In January 2016, the EU Commission presented its Anti-Tax
Avoidance Package. Additionally the EU Commission proposed a common
method and approach to third country jurisdictions that would
replace the current national lists with a unique and transparent
list for all EU member states.
The Commission finalised the scoreboard by investigating the tax
systems of all non-EU countries against the three 'scoreboard
1) Economic ties with the EU: this evaluates how strong the
ties are of each country with the EU and includes trade data and
bilateral foreign direct investment (FDI) flows.
2) The level financial activity in the jurisdiction:
measured against the financial activity and real economy in each
country, using data including FDI flows, financial income flows and
statistics on foreign affiliates.
3) Stability factors: general governance indicators, such as
anti-corruption measures and regulatory quality, were measured to
determine if the jurisdiction would be viewed as a safe location by
A core risk assessment of the risk level of countries was made
by the EU to ease tax avoidance using the following three risk
Absence of transparency and exchange of information under
The existence of preferential tax regimes as identified by the
Commission using publicly available information;
Zero corporate income tax.
The preliminary assessment showed that none of the countries
evaluated have all three risk indicators. Forty-five countries had
two indicators and thirty-four countries had one risk indicator.
The remaining countries had no risk indicators at all.
In October the EU Commission will agree the final list of
countries to be screened.
Once the screening phase is finalized, the Code of Conduct Group
will present its recommendations on jurisdictions to be included on
the EU blacklist by October 2017.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Common Reporting Standard (CRS) is the standard for the automatic exchange of financial account information produced by the OECD, which provides for exchange of client due diligence (CDD) information between various jurisdictions.
The Department for International Tax Cooperation ("DITC") has released Version 2.0 of the Common Reporting Standard ("CRS") Guidance Notes and clarified certain areas:
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