The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

“WE don’t have to change anything,” said Minister of Economic Affairs Michael Halkitis yesterday as he insisted that the country is still on track for the rerating by the OECD Forum on Harmful Tax Practices.

Speaking to the Tribune yesterday, Mr Halkitis said the country remained on the EU’s list of non-cooperative jurisdictions for tax purposes – often referred to as a blacklist - because they met prior to the OECD and maintained the country has “done all the changes that they asked”.

He said: “We don’t have to change anything, it’s just a matter of we’ve done the changes that they asked, it’s just a matter of how they haven’t had a chance to meet to look at it.

“We are being graded by the forum on harmful tax practices. The EU takes their recommendation, unfortunately they met before, so we have to stay.

“Now when the forum on tax practices meet, they’re going to report and then when the EU has the next meeting, they will take into consideration what the forum on harmful tax practices say.”

The Ministry of Finance released a statement on the EU’s revised list of non-cooperative jurisdictions yesterday, noting the decision was made based on the OECD’s meeting in April, prior to the implementation of economic substance reforms.

It also said the government is “cautiously optimistic for a favourable review” by the OECD this month and that will be taken into consideration by the EU at their February 2024 meeting.

It said: “The 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 our reforms for economic substance were implemented.

“The FHTP will meet again at the end of this month. The government of The Bahamas is cautiously optimistic for a favourable review by the FHTP.

“A favourable review by the FHTP at the end of 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 the compliance with the economic substance regime.

“The Government of The Bahamas has made considerable progress over the last year and this is reflective in the non-compliance on the BEPs Action 13 Country-by-Country Reporting being removed from the EU’s determination.”