The European Commission has made recommendations to member states to cut financial support to companies with links to countries that are on the EU’s list of non-cooperative tax jurisdictions. These measures were taken to prevent the misuse of public funds and to strengthen safeguards against tax abuse throughout the EU
Restrictions apply to companies that have been convicted of serious financial crimes, including, among others, financial fraud, corruption, non-payment of tax and social security obligations.
Currently there are 12 countries including territories blacklisted by European Commission
- American Samoa,
- Fiji,
- Guam,
- Oman,
- Samoa,
- Trinidad and Tobago,
- US Virgin Islands,
- Vanuatu,
- Cayman Islands,
- Palau,
- Seychelles,
- Panama
Member States should also agree to reasonable requirements for companies to prove that there is no link with a jurisdiction on the EU list of non-cooperative tax jurisdictions. They must also inform EC periodically on the measures taken on the subject.
It is up to Member States to decide if they wish to grant financial support and to design measures in line with EU rules, including State aid rules, and their policy objectives. The coronavirus outbreak has required unprecedented efforts at both national and EU level to support Member States’ economies and facilitate their recovery.
The full information is available here
