Bermuda to be removed from EU blacklist
European Union documents have confirmed that Bermuda will be removed from the bloc’s tax blacklist tomorrow.
Finance ministers from the 28 member countries are due to convene in Brussels for a meeting of the Economic and Financial Affairs Council.
A background paper for the meeting, published by the European Council, said: “As points without discussion, the council is expected to approve an update to the list of noncooperative jurisdictions: the council should decide to remove Aruba, Barbados and Bermuda from the list.”
The document backed up Curtis Dickinson, the finance minister, who said in the House last Friday that he expected Bermuda to removed from the blacklist at Ecofin’s meeting.
Bermuda was added to the list of noncooperative jurisdictions for tax matters two months ago, after what David Burt, the Premier, said was a “drafting error” in the economic substance regulations submitted to the EU.
Mr Dickinson said Bermuda was likely to be moved from Annex 1 of the list to Annex 2, known as the greylist.
He added that EU concerns remained over the island’s legislative framework for collective investments funds and that the island had committed to address that by the end of the year.
Bermuda will be grouped with the Bahamas, the British Virgin Islands and the Cayman Islands on the greylist for having “tax regimes that facilitate offshore structures that generate profits without real economic activity”.