Washington, D.C. – Guam and American Samoa remain on the European Union’s black list of tax havens, despite US Treasury and local efforts to delist the territories.
Now facing possible tax increases and spending cuts, Guam already complies with international tax standards as part of the US.
That from Treasury Secretary Steve Mnuchin, who told the EU Council in December that US’s commitments to implement minimum tax standards to avoid evasion of EU taxes extends to Guam and American Samoa.
The EU plans to remove the Marshall Islands, Bahrain and Saint Lucia from its tax haven black list this week, leaving just six jurisdictions on the list—Guam, American Samoa, Samoa, Palau, Namibia and Trinidad and Tobago.
The three delisted jurisdictions were removed after they made “specific commitments” to meet EU standards for tax rules and practices.
Eight nations, including South Korea, Mongolia, Tunisia and the United Arab Emirates were delisted in January.
Secretary Mnuchin, meantime, told the EU that the US islands are reviewed by the US under G-20 criteria.
Mnuchin says Guam and American Samoa and the other US territories are, therefore, already subject to monitoring of implementation of international tax standards and should no longer be black-listed by the EU.