EU Could 'Go After' UK Tax Haven Territories During Brexit Talks

The European Commission could use the pressure on UK overseas tax haven territories as leverage during the Brexit negotiations, UK media reported Sunday.

In December 2017, the Council of the European Union approved a list of "non-cooperative jurisdictions in taxation matters." The Council also reached an agreement on application of "defensive" measures in regard to the list of tax havens that included 17 countries and territories. No UK overseas territories have been put on the list.

The Independent newspaper reported on Sunday citing EU sources that Brussels would soon demand London to disclose the information about the functioning of such tax havens and in the case the United Kingdom refuses to comply, the European Union could include the UK territories to the list.

The newspaper's sources said that the European Union will start the process of blacklisting screening such UK territories as Anguilla, the British Virgin Islands and the Turks and Caicos Islands in early spring, while Bermuda, the Cayman Islands, Guernsey, the Isle of Man and Jersey had already expressed readiness to address the EU concerns to stay off the list.

The newspaper noted citing unnamed officials that the European Union can potentially use the process as leverage in Brexit talks.

Started on June 19, 2017, Brexit negotiations between the United Kingdom and the European Union are due to be completed by the end of March 2019. The first phase of the talks focused on the protection of EU citizens' rights in the United Kingdom and vice versa, as well as the UK-Irish border and London’s financial obligations to Brussels after the withdrawal.

The second one, which kicked off in December, focused on the transition period in EU-UK relations after Brexit, and their future long-term trade and security cooperation.