The European Commission is today delivering on its pledge to ensure that the EU's common EU list of non-cooperative tax jurisdictions is backed up by effective countermeasures. Guidelines adopted today mark the first step in stopping the transit of EU funds through non-cooperative tax jurisdictions. They will ensure that EU funds do not inadvertently contribute to global tax avoidance. Today's guidelines should guarantee in particular that EU external development and investment funds cannot be channelled or transited through entities in countries on the EU's common list. The first-ever list was agreed and published in December 2017 and is being updated on a continuous basis.
The new requirements seek to align the EU's objective of tackling tax avoidance at the global level with the rules governing the use of EU funds by International Financial Institutions (IFIs) such as the European Investment Bank (EIB), development financial institutions (DFIs) – including the European Fund for Sustainable Development (EFSD) - and other eligible counterparties.
Communication from the Commission on new requirements against tax avoidance in EU legislation governing in particular financing and investment operations