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Tax & Legal

Latest Updates from OECD/EU in the tax avoidance arena


The second half of May 2018 saw updates to the OECD Harmful Tax Practices – 2017 Progress Report on Preferential Regimes and to the EU’s list of non-cooperative tax jurisdictions.

Updates to OECD Harmful Tax Practices – 2017 Progress Report on Preferential Regimes

On 17 May 2018, the Inclusive Framework on BEPS (see below) published updates to its Harmful Tax Practices – 2017 Progress Report on Preferential Regimes following the reviews of certain preferential tax regimes conducted in connection with BEPS Action 5 (Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance), which it had approved on 9 May 2018. The data represents the conclusions of the reviews of the relevant regimes carried out by the Forum on Harmful Tax Practices (FHTP).

The Inclusive Framework on BEPS is a body in which over 100 countries and jurisdictions collaborate on the implementation of the OECD/ G20 BEPS Package.

Since the creation of the Inclusive Framework, the FHTP have considered 175 regimes in over 50 jurisdictions. The latest review has released updates on 11 regimes:

  • Four new regimes designed by Lithuania, Luxembourg, Singapore, Slovak Republic were considered to compliant with FHTP standards;
  • Chile, Malaysia, Turkey and Uruguay abolished regimes or amended to them to remove harmful features or potentially harmful features.
  • A further three regimes (Kenya and two in Vietnam) were considered to be outside the scope of BEPS Action 5.

EU list of non-cooperative tax jurisdiction amended.

On 25 May 2018, the Council of the EU removed the Bahamas and Saint Kitts and Nevis from the EU’s list of non-cooperative tax jurisdictions.

As a result, 7 jurisdictions remain on the list of non-cooperative jurisdictions: American Samoa, Guam, Namibia, Palau, Samoa, Trinidad and Tobago and the US Virgin Islands.