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David Marinelli
May 17, 2024
The EU List of non-co-operative jurisdictions has been updated, with Bahamas and Turks and Caicos Islands delisted and Belize and Seychelles moved to Annex II pending the results of a supplementary review by the Global Forum on Tax Transparency and Exchange of Information.
The remaining counties on the Annex I list are: American Samoa, Anguilla, Antigua and Barbuda, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad and Tobago, US Virgin Islands, and Vanuatu.
On 22 February, Frankfurt was selected by the EU Parliament and EU Council as the host city for the new EU Anti-Money Laundering body, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). The European Parliament and Council held a public hearing on 30 January on candidacy applications submitted by Member States to hold AMLA’s seat. Applications were heard concerning the proposals of: Rome, Vienna, Vilnius, Riga, Frankfurt, Dublin, Madrid, Brussels and Paris. The hearing can be replayed here.
It was the first occasion that a public hearing has been required in the process to determine the seat of an EU agency and follows from the decision of the EU Court of Justice which held that the competence to determine the location of the seat lies with the EU legislature.
In a ‘historic’ vote, the European Union became the first jurisdiction to adopt a landmark act on regulation of Artificial Intelligence (AI). The European Parliament legislative resolution of 13 March 2024 on the proposal for a Regulation of the European Parliament and of the Council of the EU on laying down harmonised rules on Artificial Intelligence (“Artificial Intelligence Act“) was adopted at the Parliament session in Strasbourg last week.
GPAI (General-purpose) AI systems and their foundational models are mandated to fulfil specific transparency criteria, encompassing adherence to EU copyright law and the provision of comprehensive summaries of the training content. Enhanced GPAI models, with potential systemic risks, are subject to further prerequisites, including conducting model evaluations, assessing and mitigating systemic hazards, and incident reporting. Moreover, artificially created or manipulated multimedia content, known as “deepfakes”, must be explicitly labelled as such. This is to ensure clarity and maintain the integrity of information in the digital space. In addition, other high-risk AI systems will be placed under stricter scrutiny due to their potential detriment to human health, safety, fundamental rights, environment, democracy, and the rule of law.
In the spirit of safeguarding collective human rights, the EU AI act establishes guidelines that prohibit certain AI applications, such as invasive technologies with biometric categorisation, i.e. indiscriminate collection of facial images from the internet or CCTV for facial recognition databases. The rules also extend to emotion recognition in workplaces and schools, social scores, and predictive policing that relies on profiling an individual or assessing their characteristics. Moreover, any AI designed to manipulate human behaviour or exploit human vulnerabilities is prohibited.
The EU and US reaffirmed their common commitment to a risk-based approach to artificial intelligence (AI) and support for reliable AI technology in the framework of the EU-US Trade and Technology Council (TTC) meeting held in Leuven, Belgium. As a key forum for transatlantic cooperation on trade and technology, the sixth meeting in such format was attended by Commissioners Margrethe Vestager, Valdis Dombrovskis and Thierry Breton representing the EU, and US Secretary of State Antony Blinken, US Secretary of Commerce Gina Raimondo and US Trade Representative Katherine Tai.
The overview document entitled AI for the Public Good sets out the basic principles in the partnership between the European Union and the United States on collaboration in the area of Artificial Intelligence (AI), aiming to align allied interests and values in harnessing emerging digital technologies to tackle global challenges. The paper notes that “through this groundbreaking initiative, EU-U.S. scientific cooperation in AI is channelled to foster innovative research that can set the groundwork to advance societal well-being.” The EU and US will also continue to work together on transparency and risk mitigation in AI and implement the Joint Roadmap for Trustworthy AI and Risk Management.
US President Joe Biden and European Commission President Ursula von der Leyen launched the EU-US Trade and Technology Council at the EU-US Summit in Brussels on 15 June 2021.
The First Session of the Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation is currently being held in New York, from 26 April to 8 May. The Ad Hoc Committee’s Organisational Session was held from 20-22 February 2024. A second substantive session will be held in New York from 29 July to 16 August 2024.
Input on the work of the Committee was invited by the Chair of the Committee from Member States and other stakeholders, particularly concerning the substantive items in the Advance unedited version provisional agenda. The input received can be viewed here.
In December 2023, seeking a greater role for the United Nations, the UN General Assembly voted in favour of a Draft Resolution on the Promotion of Inclusive and Effective International Tax Cooperation at the United Nations, directly challenging the OECD leadership in international tax matters. The vote on a resolution filed by Nigeria and other developing countries saw a clear divide between developed countries, such as the EU, US, UK and Japan, and the rest of the world.
Source: Malta Institute of Taxation Click here, CFE Tax Advisors Europe Click Here
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