Bermuda’s inclusion on the EU’s updated blacklist on non-cooperative tax jurisdictions is a “technical issue” that will soon be remedied, according to Bermuda’s premier, Edward David Burt.
In a ministerial statement, which was published on the government of Bermuda’s website, during the passing of a piece of legislation on economic substance, there was a minor technical omission in Bermuda’s regulations.
In the statement, Burt said: “Essentially, what appeared as a duplication in almost identical language in our drafts was unintentionally omitted.”
“Once the omission was discovered it was immediately addressed.”
However, Burt explained that this did not appear to have been good enough for the EU.
“Despite the good faith shown over the last year, and our immediate action, the reinsertion of the omitted line appears not to have been good enough for the EU,” he stated.
But Burt added that there is “no value in recriminations and attempts to cast blame” and pointed to a section of Bermuda’s constitution that states: “The Cabinet shall be collectively responsible to the Legislature for any advice given to the Governor by or under the general authority of the Cabinet and for all things done by or under the authority of any Minister in the execution of his office.”
Burt said the “buck stops at my desk”.
However, Burt noted that Bermuda’s inclusion on the list is only temporary and in eight weeks the domicile would have the opportunity to be removed from the list.
Burt remarked: “I have every expectation that this will be done as our existing laws meet the standard required by the EU. This is a view shared by Her Majesty’s Treasury in London, who have also expressed to the [European] Commission and publicly that they too expect Bermuda to be removed from this list based on our clear compliance with the required standard.”
He concluded: “Bermuda remains a jurisdiction of choice for the best of business to operate and this government will do all that is required to preserve that position.”
The statement has since been removed from the government website.
Several industry groups have come out in defence of Bermuda’s “gold standard” reputation.
Roland Andy Burrows, CEO of the Bermuda Business Development Agency, stated: “Bermuda is a world-respected platform for business that has always adhered to the gold standard.”
“We stand firmly behind that reputation, and we commend our government’s consultative approach with the EU to date. Our industry stakeholders are committed to working with the government and regulators to ensure Bermuda is recognised as fully complaint.”
“We look forward to a positive result as soon as possible.”
Representatives from the Association of Bermuda International Companies, the Association of Bermuda Insurers & Reinsurers, the Alternative Investment Management Association, Bermuda International Long Term Insurers & Reinsurers, Bermuda Insurance Management Association and the Society of Trust and Estate Practitioners also gave words of support to the government of Bermuda.
