Bahamas Aiming To Be Removed From EU Tax Blacklist
by Mike Godfrey, Lowtax.net, Washington
19 March, 2018
Bahamas Minister of Finance Peter Turnquest has responded to the European Council's March 13 decision to include the territory on its list of non-cooperative tax jurisdictions.
Saint Kitts and Nevis and the US Virgin Islands were also added to the EU's tax blacklist. The EU Council said these territories were included because they had failed to make commitments at a high political level to remedy the EU's concerns.
In response, Turnquest said the Bahamas Government, through the Ministry of Finance, has consistently engaged with, and responded to requests from, the EU's Code of Conduct Group, the EU body which recommends jurisdictions for inclusion on the EU list of non-cooperative tax jurisdictions.
He said the Bahamas has already reiterated its commitment to the Code of Conduct Group by formal letter and is on schedule to meet the December 2018 deadline set by the European Council to address the areas of concern identified, including giving effect to measures to meet the minimum standards of the OECD's Base Erosion and Profit Shifting (BEPS) initiative, which the Bahamas signed up to in December last year.
Turnquest said he will continue to hold discussions with the EU to expedite the Bahamas' removal from the EU blacklist.
In implementing the BEPS minimum standards, territories agree to remove any harmful tax provisions in their domestic tax regimes, amend their tax treaty rules to prevent treaty abuse, implement country-by-country reporting rules and exchange these country-by-country reports with other countries, and work together to improve cross-border tax dispute resolution mechanisms.
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