BVI Signs TIEA With Portugal

by Phillip Morton, Investors Offshore.com

08 October 2010

On October 6, the British Virgin Islands (BVI) announced that it had signed a Tax Information Exchange Agreement (TIEA), with Portugal, co-signed by Sergio Vasques, the Portuguese Secretary of State for Tax Affairs and the Ministry of Finance.

The agreement is the second in two days concluded by the BVI, the first being with Germany.

The TIEA provides for full exchange of information on request in both criminal and civil tax matters and builds upon legislation in both jurisdictions which already provides for cooperation and the exchange of information. The BVI government said that the TIEA reflects both governments' shared commitment to the Organisation for Economic Cooperation and Development (OECD) principles of transparency and effective exchange of information.

Under the terms of the TIEA, Portugal and the BVI have agreed not to apply prejudicial or restrictive measures based on harmful tax practices to residents or nationals while the TIEA is in force and effective.

In a joint declaration, the governments stated that the agreement represents a milestone in relations between the two countries. The declaration further states:

“Portugal 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 Portuguese Republic recognizes the BVI government's reputation as a constructive and cooperative member of the international community with a globally-integrated and responsible finance centre.”

Speaking at the signing ceremony, signatory for the BVI, Deputy Premier and Minister of Health and Social Development, Dancia Penn stated:

“The government of the British Virgin Islands is proud of its record of positive engagement in international initiatives and our reputation as a responsible finance centre with the highest standards of regulation. We very much welcome Portugal’s recognition of the BVI government’s reputation as a constructive and cooperative member of the international community. We are convinced that this TIEA will mark a new era in relations between the BVI and Portugal.”

Inclusive of October 5's agreement, the BVI has signed 19 TIEAs to date with Ireland, the Kingdom of the Netherlands, the Netherlands Antilles and Aruba, the United States, the United Kingdom, Australia, New Zealand, China, France, Germany, and the Nordic countries (Sweden, Norway, Finland, Denmark, Iceland, the Faroes and Greenland).

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