Bermuda, Aruba and Barbados agree to tax-system changes that will address EU concerns
Bermuda, Aruba and Barbados have agreed to changes that will address EU concerns about their tax systems. As a result they have been removed from an EU blacklist of non-cooperative tax jurisdictions. These three countries were added to the blacklist in March this year; now that they have been removed they will no longer face potential EU sanctions and other blacklist-related penalties.
Although Bermuda and Barbados have committed to addressing EU concerns and have been removed from the blacklist, they will still be subject to close monitoring by the EU (i.e., they are now on a so-called "grey list") until they successfully follow through on their commitments to comply with the EU screening criteria.
Twelve jurisdictions remain on the list of non-cooperative jurisdictions: American Samoa, Belize, Dominica, Fiji, Guam, the Marshall Islands, Oman, Samoa, Trinidad and Tobago, the United Arab Emirates, the US Virgin Islands, and Vanuatu.
When a jurisdiction is blacklisted, it risks facing EU defensive measures such as sanctions and limited access to EU funding, as well as other potential measures. The blacklist is intended to counter tax avoidance and harmful tax practices and to promote good tax governance; it has been revised numerous times since it was first published in December 2017.
For more information, contact your KPMG adviser.
Information is current to May 28, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500