The Bahamas government received an official letter from the Secretariat of the European Union Code of Conduct that the islands are recommended to be removed from the “black list”, which includes countries of incompatible tax jurisdictions.
A month ago, on March 13, the EU meeting decided that the Bahamas should be included in the list of countries with jurisdiction with unconsolidating tax rules. There also came the Virgin Islands, Saint Kitts and Nevis, and the list itself consists of 9 jurisdictions.
The European Union is quite concerned about the taxation policy in the offshore territories. Because of this, the EU member states cooperate only with those states that support their political situation. And although this “blacklist” is considered an optional document, it has a huge impact on the choice of partners and contractors in terms of doing business.
Since entering the list, the Bahamas has immediately initiated cooperation with the Commission of the European Union Code of Conduct for the purpose of excluding it, as announced by Prime Minister. Exactly this unit that decides whether to include or exclude this or that offshore jurisdiction from the “black list”. At the moment, the cooperation of the Bahamas with the Code could lead to a positive outcome in terms of graduation.
The Bahamas are eager to adapt their legislation to the requirements of the EU and plan to implement all amendments until December 2018. Only if these conditions are fulfilled the islands could become highly competitive tax jurisdictions. In this case, the Bahamas will meet the requirements of the OECD initiative (Organization for Economic Cooperation and Development).
Steps to the exclusion of the Bahamas from the list of countries of incompatible tax jurisdictions
The meeting of the EU delegation, which decided to recommend the exclusion of the Bahamas from the “black list”, was held on April 12. The decision was passed to the Council on Economic and Financial Affairs of the EU, he is officially responsible for such statements. The final decision on this issue will be made at the next meeting, which will be held on May 25.
In turn, the Ministry of Finance of the Bahamas will continue to implement policies that will help to preserve and protect the reputation of the island’s jurisdiction as an international financial center. Also, the government will continue to follow the international regulatory standards and will support financial regulators that reduce the number of financial crimes – money laundering and terrorist financing.
Aspiration of the Bahamas to international standards – business benefits
The targeted policy of the Island, aimed at becoming a recognized international financial center, opens up good business opportunities in the Bahamas. In turn, the government’s desire to be excluded from the “black list” of incompatible tax jurisdictions of the EU confirms participation in an active dialogue with the Code of Conduct and EU members. Such a policy will lead to the fact that companies registered in the Bahamas will be able to actively conduct commercial activities with the countries of the European Union.