Bermuda was placed on an updated blacklist as a non-cooperative tax jurisdiction by the European Union. The EU hopes that this will inspire Bermuda, as well the other captive domiciles on the list, to take the concept of tax evasion and avoidance seriously, and keep globe financial in order.
Bermuda is listed alongside Aruba, Barbados, Guam, Vanuatu, and the US Virgin Islands. The creation of the updated EU blacklist was a result of a European Commission directed research and investigation. This time there were 10 new countries added to the updated list, which means 15 total jurisdictions are currently on it.
The general criteria for the EU blacklist involves three things. The first was tax transparency, which makes all financial actions easily visible in order to avoid any chance of hidden corruption. The second is good governance that will assure all financial actions are being monitored efficiently by a selected party. The third is the rate of economic activity and the verification of that activity to assure that there is a real, steady, and prospering economic flow.