US could end up on EU blacklist, say officials

| 13/12/2018 | 63 Comments

Cayman News Service(CNS): As the European Union updates its blacklist of global financial centres, the United States could end up on the list next year, Bloomberg has reported. Many critics of the attacks on offshore centres have often pointed to the hypocrisy relating to how onshore financial centres in major countries are given a pass while offshore centres are targeted as tax havens. But this time, as the Cayman Islands is very likely to dodge the new blacklist, the US could be at the top if it fails to adopt the Organization for Economic Cooperation and Development’s Common Reporting Standard.

“So far the Trump Administration has not moved to adopt the OECD Common Reporting Standard,” Paul Tang, a member of the European Parliament from the Netherlands, told Bloomberg Tax this week. “We have been assured by the European Commission that if it does not do so by June of next year the process for it being listed will begin.”

The EU’s list highlights jurisdictions in the financial world that have not committed to increasing tax transparency and reducing preferential tax measures as a way to cut tax avoidance and fraud. Countries on the blacklist could face sanctions, such as imposing withholding taxes on any funds moved from the EU to a country on the list.

The list, which began with 17 countries in December 2017, is now down to just six. But new criteria are being adopted for 2019, and to meet them and avoid the blacklist, Cayman has been scrambling to complete legislation, which is set to be brought to the Legislative Assembly next week, just days after the bills were published on Friday, 7 December.

New rules under proposal are also likely to lead to the requirement to publish the beneficial owners of companies, and issue that is already causing friction between Cayman and the UK. But if public registers become the global standard, the Cayman government’s concerns about creating an uneven playing could be averted, though there are still concerns that the tax havens within the EU itself are not on the list.

Jude Scott, the CEO of Cayman Finance, explained to Bloomberg the position of this jurisdiction on fairness. “Standards of transparency and cross-border cooperation on tax issues can only be considered fair and effective if they apply to all jurisdictions rather than just a targeted few,” he said.

The new list has not yet been disclosed but Bloomberg reports EU diplomats indicating that as well as the US, Russia and another unnamed 12 countries could be on it.

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Category: Local News

Comments (63)

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  1. Anonymous says:

    The offshore jurisdictions should blacklist the EU for anti-competitive practices and threaten to kick out all their citizens and businesses.

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  2. Anonymous says:

    Cayman and the other offshore jurisdictions missed a great chance here to tell the EU what they can do with their blacklist, and to do it with the US on their side. There would have been an outcry from EU business (or a migration of them) and the new rules wouldn’t have lasted long. Now they’ll only be encouraged to go further with their next attack.

  3. Anonymous says:

    Meaningless bullshit. All of humanity ends up in of two places. How about some positive directions to help us get home or are you lost too?

  4. Anonymous says:

    Reading some of the posts here it is clear that not only is your island just plain stupid, but I would’ve never thought how anti-American so many of you are. You’re the kind who pulls the racist card first too. Sad
    No wonder DART makes it look so easy

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  5. Slacker says:

    All you anti EU commentators, you might want to check out the World Happiness Index. All the highest rankings go to Norther European countries, followed by Canada.

    The US and UK are barely hanging on, by being at the very bottom of the top twenty.

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  6. Anonymous says:

    The USA hasn’t joined CRS or BEPS. They did the opposite: they lowered their corporate tax rates from 35% to 21%, lower than the EU average, and predictably, the cash is rolling back in, plants are being shifted back to USA and it’s creating jobs. You can’t exclude the USA and the US Dollar from the international payments and settlements systems because they are the de-facto base global currency for all commerce, and leading custodial jurisdiction for securities markets. After 9/11 when Wall Street shut down for several consecutive sessions, most of the planet did as well, not just in sympathy, but out of systemic paralysis. As much as I’d love to see the EU try, in reality, it’s very unlikely to happen.

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    • Anonymous says:

      One of the highest child mortality rates in the world,masses of people reliant on food banks, abysmal health care unless you can pay for it. More of its population are killed at the hands of its own people than any foreign “terrorists”. Jobs may be going to the USA but it has a life time to catch up on. It is one of the most unequal societies in the western world. So much for the American dream!

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    • Not left nor right. Just saying says:

      Not so sure about the US future at this point. Economy might be good now but … a s**t storm is brewing and might not end up so great.

  7. Anonymous says:

    The Cayman Islands committed to BEPS in 2016 under Wayne Panton. At the time, Dax Basdeo characterized the effect on the local economy as “benign”. Jude Scott, chief executive officer of Cayman Finance, said, “We fully support global standards, but they should apply to everyone”. Here we go…

  8. #MAGA says:

    USA will not capitulate like the Cayman’s EU have no authority it would be challenged in the international courts. Never going to happen ever #MAGA

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    • Anonymous says:

      Are these the international courts that the Orange Balloon has withdrawn the US from? The EU can blacklist whoever they like, as can the US. But the hypocrisy of the US in requiring regulation elsewhere worldwide while willfully ignoring the problem at home is breathtaking. That kind of behavior is hardly helping make America great again (which earlier era of “greatness” are MAGA trying to revive, by the way? Slavery? Jim Crow? Vietnam?)

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      • Anonymous says:

        The one that won WW II and the Cold War will do for me.

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        • Anonymous says:

          WWII was more of a global effort (as indicated by its name), classifying it as an American win is being a bit liberal with history not to mention that the USSR collapsed due to internal stress not external ones
          Sure they spent 50 years pointing nukes at each other and fighting in proxy wars but the US didn’t directly win the cold war

          Speaking of the US winning the cold war, remind me again which country the US now pays to take their astronauts and cargo into space

          (hint they ‘lost’ the cold war)

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          • Anonymous says:

            Uhhh yes, 2:54
            The lack of education at it’s brightest.
            Now, go back to work and supersize those fries.

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          • Anonymous says:

            Remind me of the size of Russia’s GDP? (Hint-it’s not in the top 10, although it was 2nd as the USSR.) Or remind me of Russia’s size compared to the USSR? (Hint-it’s littler both in people and size.) Who caused this? (Hint-it was not the pope, the initials are RR.)

        • Anonymous says:

          “Loves his country so much he’ll do anything for it – except live there”.

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  9. Anonymous says:

    BUHHAHAHAHAHAHAHAHAHA!

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    • Anonymous says:

      Before you find it too funny, think of the ramifications for our own status if our financial entities trade with blacklisted jurisdictions. Look what happened to those banks and companies doing business with Iran, for example. Given the vast majority of our financial services in come is US denominated….

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  10. Anonymous says:

    Fake news.

    Must be the laugh of 2018!

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  11. Anonymous says:

    If the EU blacklisted the USA, that would help us all laugh more and live longer! Hope they do. Would like be to see the US’ reaction.

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    • Anonymous says:

      I would enjoy that myself. I think the EU has been leveraging its members for a long time, and when Brexit eventually becomes successful (after the dim times) more countries will bail from it, and it will die the death it deserves.

      The current administration of the U.S. would probably do no more than issue a scathing Tweet, and then whinge about it for a week. 😀

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    • Anonymous says:

      Trump isn’t as weak as our politicians. Let them try to put USA on a blacklist. He’ll remind them again who pays for the majority of NATO and ask them to contribute their fair share.

      Bunch of bureaucrats who most likely have never run a business or their households now trying to run the world.

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      • Anonymous says:

        2:34 The harsh reality is that NATO is so heavily dependent on US support and US equipment the USA could probably shut down most of it within weeks if they chose to. Even the French, who are possibly the most independent NATO force, use US-built transport, refueling and AWACS aircraft.

  12. Anonymous says:

    Racist list anyway.

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  13. Anonymous says:

    Can we declare war against all EU members and tell them to get lost ? These snotty European countries being led by Germany and France need to mind their own business. We kicked Germany’s ass in the war and France is well known as a bunch of cowards. Why are we bowing to them ? Flip them the bird and send them on their merry way

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    • Anonymous says:

      Stupid comment originates from a stupid commentor

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    • Anonymous says:

      What a useful and articulate contribution to the debate!

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    • Anonymous says:

      Pirate’s Week never ends for some folks.

    • Anonymous says:

      Why did the US enter WW2? Because the Japanese bombed the crap out of a woefully incompetently defended Pearl Harbor and then Germany declared war on America (no, not the other way round)! If those two things hadn’t happened, they’d have sat on their hands and done nothing, so powerful was the crypto fascist “America First” movement at that time (rings any bells?). And France lost more men in the defense of their country in 1940 than the US did in the Civil, first and second, Korean and Vietnam wars combined. They are a gallant and warlike country whose military parades Trump is so desperate to copy. Oh and the US army was renowned in Korea for the speed at which it ran away from the Chinese troops.

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      • Anonymous says:

        BS

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        • Anonymous says:

          Afraid not. Facts. Always harder to handle than myth.

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          • Anonymous says:

            I think you are confused about France’s losses “in 1940.” They only fought 6 weeks before surrendering with 200,000 total deaths. US combat-only deaths—Civil War 140,000, WW I 53,000, WWII 291,000, Korea 33,000, Viet Nam 47,000. It is apparent that American losses were much lower than the enemy’s in each case, but that is usually considered a good thing. It does fit your anti-American rant to lie about it though.

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          • Anonymous says:

            3:27
            You talk like you were there for each one of these. Oh wait, that was the education you got on your island, sorry

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      • Anonymous says:

        12:59
        Absolute fool you are.

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      • Anonymous says:

        12:59
        Aweeee, you so bitter. Angry huh? I would’ve never thought there were snowflakes on that island.
        Please keep them South.

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      • Anonymous says:

        12:59 yay, that’s sounds right. I guess we got off our hands and did what every one of those countries could NOT DO to defend themselves.
        I truly hope you did not pay for any of that education

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    • Anonymous says:

      This comment is exactly why people hate Americans.

  14. Anonymous says:

    They could end up on this blacklist
    But they likely wont, and even if they do they are the US what do they care

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    • Anonymous says:

      Exactly. We do not care, even assuming such idiocy is true.

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    • Anonymous says:

      Exactly…
      The way the world is turning these days, and the way our Mr. president is tackling things, you are either with us or you are not.
      Not against us, just not with us, your choice.
      Our country’s pocket has been open for way too long and way too many hands have been in there…

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