Cayman removed from the EU list of non-cooperative tax jurisdictions

As we reported at the time, in February 2020, the Cayman Islands were added to the EU's 'blacklist' of non-cooperative tax jurisdictions. This followed a decision by the EU finance ministers at a regular meeting of the Economic and Financial Affairs Council (ECOFIN).

At the time it had been suggested by some industry commentators that this was mainly due to technical timing requirements, given that Cayman had been working with the EU and had taken steps which it felt rectified perceived shortcomings and met the EU's concerns.

Irrespective of the exact reasoning, ECOFIN was unable to give Cayman a clean bill of health by the time the ministers had to make their decision in February.

But better news for Cayman now.

The list of non-cooperative jurisdictions came up for consideration again at the ECOFIN meeting held earlier today - this time, Cayman's efforts have been recognised and its name removed from the blacklist, along with that of Oman. On the other hand, Anguilla and Barbados have now been added.

Although the short time implications of being on the blacklist may not have been significant, it is still obviously better for Cayman - economically and reputationally - not to be subject to the various administrative measures imposed on non-cooperative jurisdictions by EU Member States. (See, for example, the section headed 'Impact of blacklisting' in our article referred to above.)