EU Releases Tax Haven Blacklist

Following the recent Bermuda cyber-attacks, the Panama and the Paradise papers, the EU has released a blacklist of 17 non-compliant tax jurisdictions, with 47 countries getting off with a warning notice.

Some of the countries mentioned on the blacklist include South Korea, Mongolia, Namibia, Panama, Trinidad & Tobago, Bahrain and the United Arab Emirates.

Meanwhile the Government of Bermuda recently announced that the Economic and Financial Affairs Council (ECOFIN) has reaffirmed Bermuda’s status as a cooperative tax jurisdiction.

Despite this, reports indicate Bermuda, alongside the Cayman Islands, Guernsey, Jersey and the Isle of Man, have been placed on a ‘grey list’ by the EU, and continue to be countries committed to reform their tax structures so that companies do not abuse their 0% tax models to hide cash.

The Hon E David Burt JP, MP, Premier of Bermuda, said: “Once again the EU has recognized Bermuda’s status as a cooperative jurisdiction, despite the interest surrounding a hack on a global law firm and related documents in the public domain. The outcome of the ECOFIN decision demonstrates Bermuda’s position as a global leader in international tax transparency.

“Bermuda welcomes continued dialogue with the EU Code of Conduct Group and EU Member States.”

Still, Bermuda got a warning notice, and may not be on the ‘blacklist’ but certainly under scrutiny moving forward. So the phrasing of a ‘global leader’ remains a little strong.