European Union (EU) finance ministers will remove The Bahamas from the EU’s list of tax havens next Friday, according to a draft agenda of the EU’s next meeting released to Reuters Business Friday.
Back in March, The Bahamas was added to the blacklist, deeming The Bahamas’ “tax rules and practices” not in line with EU standards.
Once The Bahamas committed to changes imposed by the EU, tax officials recommended moving the country from the blacklist to a so called grey list of jurisdictions with low tax transparency standards.
“EU finance ministers are expected to formally adopt the removal decision next Friday, May 25, according to a draft agenda of the meeting,” an EU official said.
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.
After several revelations of widespread tax-avoidance schemes used by corporations and wealthy individuals to lower tax bills, the EU blacklist was set up in December of last year.
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.
According to EU officials, countries on the grey list could be moved to the blacklist if they do not honor their commitments.