TURKS AND CAICOS BACK ON EU TAX LIST

The Turks and Caicos Islands has been re-added to the European Union’s lists of non-cooperative jurisdictions for tax purposes.

The mid-February decision cites concerns raised by the Organisation for Economic Co-operation and Development (OECD) Forum on Harmful Tax Practices. In the case of the TCI, it points to a lack of enforcement of economic substance requirements, and calls on the government to strengthen their compliance programme and enhance statistical data output.

The TCI was previously placed on the list in October 2022 over deficiencies in their tax regimes, but was removed following commitments to reform.

Responding to the development, the TCI government stated that this latest assessment does not reflect inaction on their part. “Rather, it highlights technical enhancements that are already actively underway,” it said in a statement.

The government reassured that it has already “commenced measurable steps to address the recommendations” and it that remains fully committed to meeting and exceeding global regulatory expectations.

It also said that it values its reputation as a responsible international financial centre and will continue to work constructively with international partners to ensure full alignment with Economic Substance requirements and best regulatory practices.

“The identified enhancements form part of a continuous improvement process that demonstrates the jurisdiction’s proactive and cooperative approach to compliance.”

Following the latest update to the EU/OECD so-called tax blacklist, TCI has joined its sister UK Overseas Territory, Anguilla. The current list of 10 jurisdictions also includes the United States Virgin Islands.

The updated assessment places the Cayman Islands in the group of countries which the OECD says are cooperating with the EU and have no pending commitments, while the British Virgin Islands is included among countries which cooperate with the EU and have pending commitments.