Bermuda is seeking immediate removal the European Commission’s list of non-cooperative jurisdictions as both Latvia and Poland have taken the island nation off their national tax blacklists. Poland and Latvia have contacted the European Commission to confirm that Bermuda has been removed from their lists, a Bermuda official said June 29.
The blacklist, published by the European Commission June 17, seeks to identify non-EU countries that have non-compliant tax practices, such as those that lack transparency, exchange of information, or fair tax competition.
Countries are put on the EU blacklist if they have been named by at least 10 EU member states as being non-compliant. As 11 EU members, including Poland and Latvia, put Bermuda in their lists, Bermuda was included on the EU list.
OECD tax officials have expressed dissatisfaction with the blacklist, though, stating that only OECD Global forum standards should be used to assess whether a country is compliant with international standards or not. OECD officials were disappointed to learn that many of the 30 jurisdictions identified on the EU blacklist are OECD Global Forum members that are rated as largely compliant and that have also committed to automatic exchange of information.
Latvia and Poland may have been persuaded by this view when deciding to drop Bermuda from their blacklists.
“Bermuda has signed tax information exchange agreements with countries around the world together with a multilateral tax convention, adding up to over 80 treaty partners. This is today’s international standard for tax cooperation and information exchange,” asserted Bermuda Deputy Premier and Minister of Finance, Everard T. Richards.
According to Richards, Bermuda should be taken off the EU list immediately. With both Poland and Latvia now reversing course, the number of EU countries naming Bermuda as non-compliant is now down to 9, which is fewer than the number needed to be on the EU list.
“There was some indication that the list might be revised by the end of the year, but we see no reason why an administrative decision in our favor couldn’t be made immediately. We have consistently done the right thing,” said Richards.
Richards called Bermuda’s inclusion on Latvia and Poland’s tax blacklists a “mistake” and said he hoped other countries will follow their lead.
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