EU to Remove Aruba, Bermuda, Barbados From Tax Haven Blacklist

The European Union will eliminate Aruba, Bermuda and Barbados from its tax haven blacklist because they are changing their corporate tax laws.

EU finance ministers will approve the removal at a meeting on May 17, based on documents obtained by Bloomberg News.

Under the EU’s fair corporate tax criteria, a company should have “economic substance” in the relevant territory, and must not be a letterbox firm that has been set up to take advantage of low or zero corporate tax rates.

According to the EU document, Bermuda changed its laws relating to “economic substance in the area ...