BVI, Czech Republic Sign TIEA

by Mike Godfrey, Tax-News.com, Washington

16 June 2011

The British Virgin Islands (BVI) and the Czech Republic have inked a tax information exchange agreement (TIEA), a deal both governments have stressed represented a milestone in bilateral relations.

The TIEA was signed in Prague on June 13. Signing on the Islands' behalf was the BVI's Deputy Premier and Minister of Health and Social Development Dancia Penn, and the Czech Republic was represented by First Deputy Minister Ladislav Mincic.

The agreement follows Organisation of Economic Cooperation and Development standards, and provides for the exchange of information by request on civil and criminal tax matters.

The two parties also agreed to a Protocol setting out a pledge that no prejudicial or restrictive measures will be applied to residents or nationals based on harmful tax practices.

The governments of both countries issued a joint statement, which said: “The Czech Republic and BVI have long been active in international efforts in the fight against financial crimes and each share a common commitment to develop and comply with international standards on money laundering, terrorist financing and financial regulation. The Czech Republic recognises the BVI government's reputation as a constructive and co-operative member of the international community with a globally integrated and responsible finance centre.”

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