St Lucia will send a letter to the European Union expressing its commitment to change its tax rules to meet EU demands, Prime Minister Allen Chastanet has said.
The EU wants the island to sign the letter of commitment before discussions can begin on removing the island from a list of nations blacklisted for allegedly facilitating tax avoidance practices.
Once the letter is submitted, St Lucia will then be placed on a so-called “grey list” which is made up of countries that have committed to change their rules on tax transparency and cooperation.
“We are sending that letter again into them to reiterate St Lucia’s position. There is a review committee, I believe, in the early part of February and once the committee accepts St Lucia’s letter, then the process of coming off the list and going into what’s called a grey list starts. And then there’s continued dialogue about what they find offensive and hopefully we could get this thing sorted out,” Chastanet said.
Prime Minister Chastanet said he was confident that St Lucia will removed from the blacklist by the next meeting of the EU review committee.
The EU recently announced that it would remove eight countries, including Barbados and Grenada from the tax blacklist.
EU officials have said the purpose of the blacklist is to convince jurisdictions to become more transparent, according to Reuters.