The European Union’s Economic Substance Rules in Commonwealth Caribbean Jurisdictions: What Is the Purpose?
Journal
Bahamas; Barbados; Bermuda; British Virgin Islands; Cayman Islands; European Union; International; OECD
Bulletin for International Taxation 2020 (Volume 74), No. 9
This article criticizes the EU concept of economic substance regarding Commonwealth Caribbean international financial jurisdictions, refuting the arguments on which it is based and demonstrating the impracticality of the “test of substance” under Criterion 2.2. It also argues that common law is effective in addressing tax avoidance and determining substance.