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Fiji, Vanuatu, Marshall Islands added to EU tax blacklist

The European Union has added Fiji, Vanuatu and the Marshall Islands to an extensive tax blacklist.

The 28-nation list was set up in December 2017 in a bid to crackdown on tax avoidance by corporations and wealthy individuals.

Tax jurisdictions alleged to be not complying with EU regulations face restrictions on transactions with the bloc and reputational damage.

The Pacific countries which were given a year to change their tax rules or, join Samoa, American Samoa and Guam on the blacklist.

 

In its release on Tuesday, the EU said Vanuatu and the Marshall Islands were facilitating “offshore structures and arrangements aimed at attracting profits without real economic substance”.

It added that Fiji had kept “harmful preferential tax regimes”.