Nearly a month and half after it was blacklisted by the European Union (EU), The Bahamas is today set to be removed from that list of non-cooperative jurisdictions.
EU documents show that EU finance ministers are set to remove both The Bahamas and Saint Kitts and Nevis from the EU tax havens list.
The Bahamas had been included in the blacklist in March as the country’s tax rules and practices were deemed not in line with EU standards.
Following an aggressive commitment from Finance Minister and Deputy Prime Minister Peter Turnquest as well as Financial Services, Trade and Investments Minister Brent Symonette, to implement changes, EU tax officials recommended moving this jurisdiction from the blacklist to a so-called grey list.
The finance ministers in a regular meeting today are expected to formally adopt the removal decision, according to a draft agenda of the meeting obtained by Reuters.
Seven other jurisdictions will remain on the blacklist including Namibia, Palau, Samoa, Trinidad and Tobago and the three United States’ territories of American Samoa, Guam and the U.S. Virgin Islands.
The EU blacklist was set up last December, after several revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
Blacklisted jurisdictions could face reputational damage and stricter controls on their financial transactions with the EU, although no sanctions have been agreed by EU states yet.
Those who are on the grey list could be moved to the blacklist if they do not honor their commitments.