The Bahamas is expected to be removed from the European Union’s (EU) grey list when the EU meets again, according to a Financial Times article, which cited EU diplomats as sources.
The article, which revealed that The Cayman Islands has been added to the EU’s blacklist, said The Bahamas and Armenia will be removed from the list.
“EU27 ambassadors on Wednesday took a decision to place The Cayman Islands on a nine-strong list of overseas tax territories that do not effectively co-operate with the EU, according to diplomats,” the article read.
“The move comes less than a month after the UK’s exit from the EU. European finance ministers are set to confirm the move when they meet in Brussels next week.
“The Cayman Islands will join Oman, Fiji, and Vanuatu on an EU blacklist of foreign tax havens, making it the first UK overseas territory to be named and shamed by Brussels for failing to crack down on tax abuse.”
The Bahamas has been working hard over the past three years to comply with the changing rules set out by the EU in order to remain off of any damning lists created by this global financial watchdog.
Now, it seems The Bahamas has done enough to escape the scathing blacklist and grey list designations, for now.
“The statuses of The Cayman Islands and the British Virgin Islands — both overseas British territories — were up for review by the EU this month. Both were placed on a “grey list” that gives authorities time to introduce legislation to address tax deficiencies identified by Brussels,” the Financial Times article read.
“Officials said The Cayman Islands did not pass legislation that adequately addressed concerns about companies who claim tax advantages but do not have a sufficient economic presence on the island.
“An EU official said the law, which passed last year, was found to be ‘deficient’. The territory had also been asked to adapt its legislation on investment funds to bring the rules closer to EU standards.”
The Bahamas passed a compendium of laws over the past two years in order to align itself with the whims of the EU.
And those rules continue to be retooled and changed, and are expected by global governments to be changed once again, possibly by the Organization for Economic Cooperation and Development.