NASSAU, BAHAMAS — The Bahamas has once again failed to escape the European Union's (EU) blacklist.

The Bahamas was listed among the jurisdictions remaining on the EU's list of non-cooperative for tax purposes. However, the government contends that the EU failed to consider many of the reforms implemented by this nation. European finance ministers updated the EU tax havens list which now includes 16 countries. They added Antigua and Barbuda, Belize, and Seychelles to the blacklist and removed the British Virgin Islands, Costa Rica and the Marshall Islands.

A statement from the Ministry of Finance noted that the 27-nation EU's determination was based on the recommendation of the OECD's Forum on Harmful Tax Practices ("FHTP") meeting held in April 2023, before many of this nation's reforms for economic substance were implemented.

It was also noted that the FHTP will meet again at the end of this month. "The Government of The Bahamas is cautiously optimistic for a favorable review by the FHTP. A favorable review by the FHTP at the end of the month will be considered by the EU in their February 2024 meeting. The Government of The Bahamas has and continues to do everything in its power to address compliance with the economic substance regime."

The government said that it has made considerable progress over the last year, and this is reflected in the non-compliance on the BEPs Action 13 Country-by-Country Reporting being removed from the EU's determination.

Free National Movement (FNM) leader Michael Pintard in a statement noted that The Opposition will continue to stand with the current administration "in any effort to point out and stand up to the sometimes unfair and arbitrary rules and conditions placed on small sovereign nations such as The Bahamas."

He added: "We are often subject to different standards than larger countries concerning tax and finance matters. We will continue to support the government in all efforts to combat these instances where appropriate."

Still, Pintard argued that this nation has made commitments and signed on to protocols that require The Bahamas to maintain established globally accepted protocols around taxation, economic substance, and tax information exchange.

"We expect the Davis administration to live up to its word when it says it will preserve the reputation and integrity of the country as a credible international financial jurisdiction.

"Instead, we have a distracted and unfocused Prime Minister and Cabinet who are too busy jet-setting around the world, flossing and flamming, instead of busying themselves with the hard work of governance to move the country forward," said Pintard.

"After two years of blaming the former FNM administration and committing to fixing the issue, the Davis Administration still has not accomplished what it said it would complete 20 months ago in December of 2021. The PLP has run out of excuses and run out of time. The failures are mounting. It is well past time for the Prime Minister and his team to stop the show-boating and get to work."

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