HAMILTON (Reuters) – Bermuda’s Premier David Burt on Tuesday called the European Union’s decision to put the British overseas territory on a list of global tax havens “a setback” but said he was confident it would soon be reversed.
“The news from Brussels this morning is a setback for Bermuda,” a grave-faced Burt told local journalists at a news conference, flanked by business leaders.
Bermuda - Matter - Weeks - EU - Member
“Bermuda is compliant and we are confident that within a matter of weeks that will be accepted by EU member states and Bermuda will be removed from this list,” he added.
The 28-nation EU set up the so-called blacklist in December 2017 after revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower tax bills.
Governments - Blacklist - Tax - Havens - Tuesday
EU governments adopted a broadened blacklist of tax havens on Tuesday, adding 10 jurisdictions to the updated list. They are: Bermuda, the Dutch Caribbean island of Aruba, Barbados, Belize, Fiji, the Marshall Islands, Oman, the United Arab Emirates, Vanuatu and Dominica.
Blacklisted jurisdictions face reputational damage and stricter controls on their financial transactions with the EU, although no EU sanctions have yet been agreed by European states.
Effort - EU - Deadline - Island - Legislation
In an effort to meet an EU deadline, the self-governing island passed legislation in December that obliges companies domiciled in Bermuda to have a “substantial economic presence,” granting some firms a grace period for implementation.
While Britain had pushed other EU states not to include Bermuda on the list, it lifted its objections after the European Commission argued that the island has “been playing games” to dodge EU requirements, according to minutes of a meeting...
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