DUBAI: The European Union (EU) has released a blacklist of 17 countries, including the United Arab Emirates(UAE), Bahrain and Tunisia, which it says are tax havens.
The bloc said on Tuesday that the countries on the list, made public after months of screening of tax policies, were not doing enough to deal with offshore avoidance schemes.
They will face restrictions in receiving EU funding and investments from the European Investment Bank. The bloc’s member states can also decide on imposing their own sanctions, based on the blacklist.
The EU said in a statement on Tuesday that the goal of the list is to ensure its partners adhere to the same tax standards as itself, calling it “a key victory for transparency and fairness”.
However, Pierre Moscovici, the EU commissioner for economic and financial affairs, taxation and customs, noted that non-compliant countries must face harsher penalties.
“Blacklisted jurisdictions must face consequences in the form of dissuasive sanctions, while those that have made commitments must follow up on them quickly and credibly,” he said.
“There must be no naivety: promises must be turned into actions. No one must get a free pass,” he added.
“We must intensify the pressure on listed countries to change their ways.”
