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EU Blacklist: Luxembourg Goes On the Defensive

Feb. 9, 2021, 9:46 AM

The EU list of non-cooperative jurisdictions isn’t just a toothless naughty list.

Four years after its adoption, the European Union blacklist, as it’s known, has many tentacles and is now gaining importance as European Union member states use it to determine reporting responsibilities.

For example, cross-border payments to an EU blacklist country may require reporting in DAC6 hallmark C1(b).

And last year member states committed to using the EU blacklist in at least one of four specific legislative measures, including on non-deductibility of costs, controlled foreign corporation rules, withholding taxes, and limiting the participation exemption.

Luxembourg’s New Law

Among ...