Guam, along with other U.S. territories and Pacific island states, remains on the European Union’s shrunken list of jurisdictions with tax systems described as vulnerable to tax fraud and dirty money.
The EU this week cleared Anguilla, Dominica and Seychelles, cutting the tax haven list down to nine, from 25 when it was first made in 2017 to clamp down on tax avoidance and tax evasion.
EU’s updated list, released Oct. 5, includes Guam, American Samoa, Palau, Fiji, Panama, Samoa, Trinidad and Tobago, U.S. Virgin Islands and Vanuatu. They were blacklisted as “non-cooperative.”
International financial health authorities this week reiterated calls for an end to financial secrecy in light of the Pandora Papers, which revealed how the world’s richest and most powerful people hide their wealth from tax collectors.
According to the EU, the list of non-cooperative jurisdictions is a tool to tackle tax fraud or evasion, illegal non-payment or underpayment of tax, tax avoidance—such as the use of legal means to minimize tax liability — and money laundering.