In its aim to strengthen tax good governance internationally, the EU provides a list of countries whose
tax legislation and practices are deemed to encourage tax abuse and unfair tax competition. The listing
criteria is based on three key factors including transparency, fair tax competition and BEPS
implementation and once listed, countries are encouraged to cooperate and undertake the necessary
changes to domestic legislation. This EU initiative seeks above all to tackle tax fraud, evasion and
avoidance and promote international tax standards for fair taxation, and global tax transparency. The
latter are good tax governance standards that all EU Member States, including Malta, abide by, and
are standards which EU trading partners are encouraged to retain.