Deandrea Hamilton
Editor
#TurksandCaicosIslands – February 20, 2024 – Sixteen months after being added to the European Union’s Black List for non-cooperative tax jurisdictions, the Turks and Caicos Islands is now off that list.
“Today,the Council removed The Bahamas, Belize, Seychelles and Turks and Caicos Islands from the list of non-cooperative jurisdictions for tax purposes.”
The release explicitly states that in the case of the Turks and Caicos and The Bahamas, “ever since October 2022, deficiencies in the enforcement of economic substance requirements had been identified in both of these jurisdictions by the OECD Forum of Harmful Tax Practices (FHTP).”
It was recommended for remedy to the deficiencies has now been “converted from hard to soft recommendations,” said the statement.
That pivot was fundamental in the de-listing of the two countries said the information from the Council.
“…which allowed the Code of Conduct Group to consider these jurisdictions with no or only a nominal corporate income tax.”
When Magnetic Media spoke to E. Jay Saunders, Turks and Caicos Deputy Premier and Finance Minister in March 2023 he had full confidence that it was only a matter of time before the TCI was given a more favourable position with the EU.
“There is no question about it. I’m confident that by February 2024, we will be off the list– I’m completely confident and there are no lasting repercussions.”
It had been sub-par computer systems that landed the TCI on the list. The Deputy Premier, at the time offered that the EU was being too dramatic and its language, disproportionate surrounding the issue.
That black listing and gray listing is often viewed as a black eye in the financial services sector, therefore this announcement today is vindication for the TCI and a huge plus for the Fintech ambitions of the Misick-led government.
Twelve others remain with the unsavory categorization including Caribbean neighbours: Trinidad and Tobago; US Virgin Islands; Anguilla and Antigua and Barbuda.
