The European Union has removed Bermuda from Annex 1 of its list
of non-cooperative jurisdictions for tax purposes (the
'blacklist'), effective 17 May.
The EU's Economic and Financial Affairs Council (ECOFIN) met
on 17 May and voted to remove Bermuda from its blacklist of
non-cooperative jurisdictions for tax purposes. Bermuda was
unexpectedly placed on the list in March, despite the enactment of
the Economic Substance Act 2018 and the Economic
Substance Regulations 2018, which the Bermuda Government
believed satisfied the EU's requirements with regard to the
introduction of an economic substance regime. A typographical error
in economic substance documents submitted to the EU was understood
to be the reason the island ended up on the list.
