The Council of the European Union (EU) kept Panama on its list of non-cooperative countries and territories for tax purposes, in an update of the list published on February 24.

In addition to Panama, the list includes Fiji, Guam, US Virgin Islands, Palau, Samoa, American Samoa, Trinidad and Tobago, and Vanuatu.

"The Council regrets that these countries and territories continue not to cooperate for tax purposes and invites them to collaborate with the Code of Conduct Group to resolve the problems detected," said the European body in a statement, which added that in the list or annex I “Only those countries and territories that have either not engaged in a constructive dialogue with the EU on tax governance, or have not fulfilled their commitment to introduce the necessary reforms, are listed.”

The Council noted that Panama is not rated as broadly compliant by the Global Forum on Transparency and Exchange of Information for Tax Purposes with regard to the exchange of tax information upon request and that the country has an alien source income exemption regime that is harmful.