The EU has released its updated blacklist on non-cooperative tax jurisdictions featuring a number of captive domiciles, including Bermuda.
The list is part of the EU’s strategy to clamp down on tax evasion and avoidance.
Alongside Bermuda on the blacklist is Aruba, Barbados, Guam, Vanuatu, and the US Virgin Islands.
The updated blacklist was based on an intense process of analysis and dialogue steered by the European Commission.
Jurisdictions were assessed based upon three criteria: tax transparency, good governance, and real economic activity, as well as one indicator, the existence of a zero corporate tax rate.
The updated version of the blacklist features 10 new countries, meaning there are now a total of 15 jurisdictions on the list.
Bermuda premier David Burt said the domicile “is compliant” and the domicile was confident that within a matter of weeks Bermuda will be removed from this list.
He added: “I wish to assure the people of Bermuda that we do not anticipate any sanctions to be levied against us and this will in no way affect how we travel or otherwise interact with the EU.”
The greylist, which indications jurisdictions that will continue to be monitored, has a total of 34 countries, including nine captive domiciles; Anguilla, Bahamas, the British Virgin Islands, the Cayman Islands, the Cook Islands, Mauritius, Saint Kitts and Nevis, Saint Lucia, and Switzerland.
Erin Brosnihan, chair of the Insurance Managers Association Cayman (IMAC), said the association was proud of Cayman’s record in complying with international regulatory standards.
She commented: “Our international insurance and reinsurance industry by virtue of its systematic growth of the last few years is built upon sound pillars of governance, best practice, and professional infrastructure.”
“We remain confident that the Cayman Islands, through its existing platform of insurance managers, regulation, brokers, underwriters, and lawyers continue to build out an industry architecture that will continue to satisfy the evolving demands of stakeholders and outside interests.”
Guernsey, Bahrain, Hong Kong, the Isle of Man, Jersey, and Turks and Caicos were among the jurisdictions now cleared and removed from the greylist.
Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs at the European Commission, described the list as a “true European success” and said it “had a resounding effect on tax transparency and fairness worldwide”.
Moscovici added: “Thanks to the listing process, dozens of countries have abolished harmful tax regimes and have come into line with international standards on transparency and fair taxation.”
“The countries that did not comply have been blacklisted and will have to face the consequences that this brings. We are raising the bar of tax good governance globally and cutting out the opportunities for tax abuse."
