NASSAU, Bahamas, CMC – The Bahamas government has welcomed the decision by the European Union to remove several Caribbean countries from its list of non-cooperative jurisdictions for tax purposes.
The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017. It is part of the EU’s external strategy on taxation and aims to contribute to ongoing efforts to promote tax good governance worldwide.
Jurisdictions are assessed based on a set of criteria laid down by the Council. These criteria cover tax transparency, fair taxation, and implementation of international standards to prevent tax base erosion and profit shifting.
The EU said while the Bahamas, Belize, and the Turks and Caicos Islands have been removed, Anguilla, Antigua and Barbuda, and Trinidad and Tobago remain on the list.
“The Council regrets that these jurisdictions are not yet cooperative on tax matters and invites them to improve their legal framework to resolve the identified issues,” the EU said in a statement.
In a statement, the Ministry of Finance said that the country’s “official removal from the list follows the publishing of the adopted conclusions of the Economic and Financial Affairs Council of the European Union.
“The removal of The Bahamas from the EU’s list underscores the significant progress made over the past year by The Bahamas in addressing the concerns identified by the OECD’s Forum on Harmful Tax Practices (FHTP) and the EU last year.
“It is noteworthy that for the 2022 exchange period, The Bahamas conducted 133 exchanges with relevant exchange partners. This is a considerable increase, compared with 2020, where nine exchanges were conducted, and 2021, where ten exchanges were conducted with relevant partners.”
The Bahamas says it will continue to take proactive measures with the FHTP to “secure a fully equipped monitoring mechanism designation (FEMM); remain off the EU’s list concerning OECD initiatives and exchange of information.
“The Bahamas is a leading, premier international financial center committed to following best practices and adhering to international standards. In September of last year, The Bahamas addressed its concerns to the United Nations regarding the view and inequitable treatment of The Bahamas by the OECD and EU.
“The Bahamas will not remain silent on issues of grave importance that affect the reputation of the country and livelihood of its people,” the ministry said, adding that the “achievement of yesterday’s result is reflective of the hard work and efforts of the Ministry of Finance’s Legal and Regulatory Affairs Unit, together with the support and collaboration of the Office of the Attorney General, the financial services industry, and the Department of Inland Revenue.”
Attorney General Ryan Pinder said while he welcomed the decision by the EU to remove the country from the tax list, it keeps changing the goalpost on what it requires from small financial services jurisdictions like The Bahamas.
“We have worked extremely hard, over the last 18 months, to ensure that we’re positioned to be removed by the EU as a non-cooperative jurisdiction. We believe that the branding is inequitable and unfair.
“We do not agree with the use of blocklists to impose their will upon us, but we understand that we have to comply with global standards to survive and function as an international financial center,” he added.
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