Bermuda’s industry groups have welcomed the EU’s decision to remove the domicile from its “blacklist” of non-cooperative tax jurisdictions.
The EU Council removed Bermuda from the “blacklist” today, alongside Barbados and Aruba, two months after the domicile was originally placed on the list in March 2019.
The list is part of the EU’s strategy to clamp down on tax evasion and avoidance.
Bermuda will now be moved to the “greylist”, which includes jurisdictions that have undertaken sufficient commitments to reform their tax policies.
Following placement on the “blacklist”, Bermuda acted quickly to try and ensure removal.
Finance minister Curtis Dickinson and Premier David Burt traveled to Europe and met with EU commissioner Pierre Moscovic, who is responsible for economic and financial affairs as well as taxation and customs, on 29 March, and with Lyudmila Petkova, chair of the Code of Conduct Group on Business Taxation on 1 April.
Dickinson and Burt also visited the German and French Ministries of Finance.
Stephen Weinstein, deputy chair of the Bermuda Business Development Agency (BDA), said the Agency applauded the decision and praised Burt and Dickinson for their efforts.
He said: “We’re thankful for the efforts of our Premier and Finance Minister to engage with the EU and provide transparency into Bermuda’s world-class regime.”
“Our jurisdiction’s updated regulatory and legislative framework mirrors existing practices in our international business market, exemplifying the highest standards of compliance and economic substance.”
BDA CEO Roland Burrows said the decision is “the right one”.
He added: “We welcome it as a testament to the top-tier reputation we’ve worked hard to build over many decades.”
“We thank the government for its proactive response, as well as the regulator and all our industry stakeholders.”
The domicile’s stock exchange and industry associations all applauded the decision, including Kathleen Bibbins from the Bermuda International Management Association (BIMA).
Bibbins commented: “BIMA is pleased Bermuda has been removed from the EU list of non-cooperative jurisdictions for tax purposes.”
“The decision today by the EU recognises Bermuda’s commitment to full compliance and tax transparency.”
