BVI PM Initials Eleventh Tax Information Exchange Agreement

by Amanda Banks, Tax-News.com, London

19 June 2009

The Prime Minister of the British Virgin Islands (BVI), Ralph O’Neal, has announced the conclusion of a Tax Information Exchange Agreement (TIEA) with France, signed in Paris last week. The signing of the agreement brings the British Virgin Island’s tally of such agreements to eleven, one short of being deemed ‘fully-compliant’ with the OECD’s principles of transparency and information exchange.

The agreement will provide the respective countries’ tax authorities with information on tax matters upon request in cases where there is sufficient concrete evidence of the perpetration of a tax crime. It was signed by O’Neal and French Budget Minister Eric Woerth, who commented that the signing of the agreement was “further evidence of the British Virgin Islands’ willingness to implement the OECD principles of transparency and information exchange,” adding that it would have “a favourable impact on the British Virgin Islands in relation to the application of specific French tax provisions, based on an effective exchange of information criterion.”

Speaking at a press conference before the signing O’Neal commented on the BVI's intention to be removed from the OECD’s grey list:

“Our 12th TIEA is in the very near future. Although that would reach the number suggested by the OECD and the G-20, we do not intend to stop there; we intend to continue to negotiate with other countries like Germany, Austria, Brazil, Mexico, Argentina, Canada and as many countries as we can make contact with and are willing to negotiate with the [British Virgin Islands].”

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