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Samoa Slams EU Tax Blacklist, Says Country Being Punished Unfairly

The Samoa International Finance Authority (SIFA) has expressed frustration at being placed on the European Union’s (EU) blacklist of countries deemed to be non-cooperative in tax matters.

Disproportionate Punishment

According to SIFA CEO Tuifaasisina Sieni Tualega- Voorwinden, Samoa is being punished unfairly for its role in global tax evasion. The country has been on the EU’s blacklist since 2017 and was recently reviewed by the organization. While the EU acknowledged that Samoa has made some progress towards compliance, it maintained its status as a “non-cooperative” tax jurisdiction.

Minimal Contribution to Global Tax Losses

Tuifaasisina emphasized that Samoa’s contribution to global tax losses is minimal - just 0.04 percent. By contrast, EU member states are responsible for 36 percent of global tax avoidance, yet they face no serious risk of being blacklisted.

Perceived Bias in Blacklist Criteria

The SIFA CEO also highlighted the perceived bias in the EU’s blacklist criteria, which she claimed favors larger countries over smaller ones. “All but one of the twelve blacklisted countries has a population of less than 1 million,” she noted. “Is the EU tax blacklist working? No doubt there are widespread concerns that it is not fair and is biased against smaller countries.”

Call for a Level Playing Field

Tuifaasisina called on the EU to ensure a “level playing field” with all countries, including Samoa, in terms of equitably set tax governance norms. She expressed commitment to good tax practices and joined growing international concern about problems with the EU’s blacklisting criteria and process.

Background Information

Samoa has been on the EU’s blacklist since 2017 after failing to implement anti-tax evasion measures despite promises made by its Embassy in Brussels. The country was also linked to the Panama Papers scandal, which exposed widespread tax evasion and money laundering using offshore financial structures.

Key Points:

• Samoa has been on the EU’s blacklist since 2017
• The country has made some progress towards compliance but still faces issues with anti-tax evasion measures
• Samoa contributes minimally (0.04%) to global tax losses, while EU member states are responsible for 36% of global tax avoidance
• The SIFA CEO claims that the EU’s blacklist criteria favors larger countries over smaller ones
• Samoa is committed to good tax practices and urges the EU to ensure a “level playing field” with all countries.