Thu. Oct 24th, 2019

Palau removed from EU blacklist

This month Palau was removed from EU’s blacklist of 17 countries it deems guilty of having tax avoidance systems.

Palau was moved to a “grey list” of countries that “have committed to addressing deficiencies in their tax systems and to meet the required criteria following contacts with the EU”.  Palau now joins other Pacific island nations on this list such as the Cook Islands, Fiji, Vanuatu, Nauru, Niue and New Caledonia.

According reports, Palau has made commitments at high level to reform tax policies and address concerns raised by EU. Concerted efforts from the Palau’s Ministry of Finance and Palau’s Ambassador to European Union worked to bring about this improvement of Palau’s status.

In December of 2017, a list of countries deemed by European Union to be havens for tax avoidance was released.  It contained many Pacific island countries including Palau as countries with tax systems that enables tax avoidance.

The update list now includes six island countries and territories, three of which are United States territories – the American Samoa, Guam, and the US Virgin Islands. The rest are Namibia, Samoa, and Trinidad and Tobago. (L.N. Reklai)