EU set to take Bermuda off grey list next month
After languishing on a register of shame instituted by European governments, Bermuda appears set to be “white-listed” by the European Union.
It is the ultimate answer to any suggestion that Bermuda is a tax haven.
In effect, it declares that Bermuda has implemented the internationally agreed tax standard, and that the EU does not consider Bermuda to be a tax haven.
It is expected that Bermuda will be removed from the grey list next week.
The grey list, known as “Annex II”, includes countries that have agreed to the internationally agreed tax standard, don’t quite meet the requirements, but are steadily working towards them.
Bermuda satisfied the requirements to graduate from the grey list a full ten months ago.
Last April, the OECD confirmed that the island had already met the requirements of its Forum for Harmful Tax Practices, after government action taken in December.
But the island was required to wait until next month’s FHTP meeting (October 4) before Bermuda would formally be “white-listed.“
It was feared that Bermuda's inclusion on the grey list would cause the island’s financial services industry to suffer reputational harm.
At a meeting of the Council of the European Union last week, the council agreed on the revision of the EU list of non-cooperative jurisdictions for tax purposes (Annex I) and the state of play with respect to commitments taken by co-operative jurisdictions to implement tax good governance principles.
Under Annex II, Bermuda is no longer entered as a grey listed country.
The grey list is somewhat removed from the “Black List”, which includes countries considered to be non-cooperative in the global effort to combat money laundering and the financing of terrorism.
The FHTP had issued Bermuda with an urgent recommendation last November to make a change relating to economic substance.
Bermuda officials completed the necessary changes in December 2021, fulfilling the recommendation well in advance of an April 2022 deadline.
You must be Registered or to post comment or to vote.
