EU Keeps Panama and Russia on Tax Haven Blacklist, Updates Grey List

The European Union (EU) has decided to keep Panama, Russia, and nine other jurisdictions on its blacklist of tax havens. The decision follows a review confirming these territories have not implemented agreed reforms or cooperated adequately on tax matters.

This list was established in 2017 and is updated biannually. It targets jurisdictions that fail to meet EU standards on tax transparency, fairness, and anti-tax base erosion measures.

While the blacklist does not impose direct economic sanctions, it restricts EU funds from flowing through entities based in these territories. The EU also updated its “grey list,” which includes jurisdictions that have committed to improving their tax practices but are not yet fully compliant.

Costa Rica and Curaçao removed themselves from this list after adjusting their tax regimes to meet EU standards. The grey list serves as a transitional category for jurisdictions working toward compliance.

Oxfam, a global non-governmental organization, criticized the lack of significant progress in combating tax avoidance. The group highlighted how large corporations and ultra-wealthy individuals continue to exploit tax havens to minimize their tax liabilities.

In addition, Oxfam urged the EU to expand its blacklist to include countries enabling companies to pay minimal taxes or obscure the identities of their real owners. The EU’s approach aims to pressure non-compliant jurisdictions into aligning with international tax standards.

However, critics argue that the measures fall short of addressing systemic issues in global tax avoidance. The blacklist and grey list updates underscore ongoing challenges in enforcing fair taxation policies worldwide.