Sunny Barbados is no longer a (tax) paradise. At least according to the European Union. The Council of the European Union updated the list of non-cooperative jurisdictions for tax purposes by removing the eastern Caribbean island. The list enters for Dominica, part of the Windward archipelago in the Lesser Antilles. The island country was included in the EU list as it received a partially compliant assessment from the Global Forum and has not yet resolved its fiscal issues. Barbados, on the other hand, had been added to the list in October 2020 after receiving a similar evaluation. have now been granted an additional review by the Global Forum and have therefore been categorized and placed in a progress document pending the results of the review.
The list, introduced in 2017, includes jurisdictions around the world that have not engaged in a constructive dialogue with the EU on tax governance or have failed to meet their commitments to implement the reforms necessary to comply with a set of objective criteria of good tax governance. These criteria concern tax transparency, fair taxation and the implementation of international tax standards. To date they are blacklisted: Dominica, American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, United States Virgin Islands, Vanuatu and Seychelles.
The list is a tool created to combat fraud and tax evasion, non-payment or partial payment of taxes, in violation of the law. It also aims to reduce tax avoidance (i.e. the use of legal means to minimize tax burdens) and money laundering understood as concealing the origin of illegally obtained capital.