After avoiding the negative designation under a “grey list” warning last year, Cayman has today joined Oman, Fiji, and Vanuatu on the EU blacklist of foreign tax havens, making it the first UK overseas territory to be singled out by Brussels. This less than a month after the U.K. left the EU.
The Cayman Islands and the British Virgin Islands were both up for review by the EU this month after being grey listed in 2019.
EU27 ambassadors made the decision to place the Cayman Islands on a list of nine overseas tax territories that have been designated as not effectively co-operating with the EU.
This decision was made under the reasoning that Cayman has not passed adequate legislation addressing concerns about companies without sufficient economic presence on-island, yet claim tax advantages.
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