(Reuters) – The European Union removed the British overseas territory of Bermuda, the Dutch Caribbean island of Aruba and Barbados on Friday from the block's black list of tax havens, and left no EU territory on the list.
The three islands are added to the list in March, as they had failed for months to change their tax rules, which the EU considered to be in danger of facilitating tax evasion in other countries.
But now Aruba has been removed because it has changed its legislation to
Bermuda and Barbados are committed to addressing the EU's problems and have therefore moved to a so-called gray list of countries still under the EU review for its tax practice, the statement says
The black list has now shrunk to 1
The blacklisted states face reputational damage and stricter controls on EU transactions.
The EU establishes blacklist in December 2017 following revelations of extensive tax avoidance systems used by companies and wealthy individuals to lower their tax bills.
The list originally contained 17 jurisdictions, but it is subject to regular reviews. Countries with legal defects are added if they do not change their rules within set deadlines.