- Bermuda reaffirms its commitment to full tax governance and transparency
Hamilton, February 24, 2022 – The Ministry of Finance of the Government of Bermuda reports that the island´s commitment to exchange information with international tax authorities, as recommended by the OECD Forum on Harmful Tax Practices (´FHTP´) in November 2021, has been noted temporarily in the State of Play document (Annex II of the conclusions of the EU Council of Ministers). The island remains a fully cooperative jurisdiction committed to full compliance.
Annex II includes cooperative jurisdictions that have substantially met all international tax standards, but which have committed to the EU to further enhancements. Once a jurisdiction has met its commitments, it is removed from Annex II.
In relation to Bermuda´s commitment to the EU, the FHTP will formally review the island´s progress in addressing the recommendation at its upcoming meeting in April 2022, with a view to removing the recommendation. Bermuda has already taken the necessary steps to meet that April deadline. In the report accompanying the EU Council's conclusions, the Council’s Code of Conduct Group “welcomes Bermuda’s cooperation and actions addressing the recommendation from the FHTP”, while also noting that Bermuda’s commitment is included in Annex II “pending a formal decision by the FHTP”.
Consequently, it is anticipated that Bermuda will be removed from Annex II in the next relevant meeting of the EU Council, currently scheduled for October 2022, and subsequent to formal recognition of the island’s updated position at the FHTP Forum meeting in April this year.
Today´s inclusion of Bermuda on the EU´s State of Play document does not result in direct penalties by the EU Member States. Bermuda remains fully committed to cooperating with the OECD and the EU in implementation of full tax governance and transparency.