Reuters reports that the Cayman Islands were black listed because investment funds based there do not reflect real economic activity on the archipelago, the document said. That could lead to investment vehicles being created solely to reduce taxes in other jurisdictions.

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The document noted that "the eastern African archipelago of the Seychelles was added to the blacklist because it has an harmful preferential tax regime."

Panama, which is already blacklisted, and the Pacific Island Palau was added to the European list because of shortcomings over exchanges of tax information.

Concerning Turkey, it is reported that the country failed to conduct automatic transfers of tax information with all EU states but was granted more time to fulfil its commitments, because it has adopted legislative changes to allow data sharing.

Reuters informs that the decision irked Cyprus with which  Turkey is not exchanging data. Similarly, Turkey does not share tax data with Germany, France, the Netherlands, Belgium and Austria, the EU countries with the largest Turkish communities, diplomats noted.

 

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