Bahamas Expanding TIEA Network

by Amanda Banks, Tax-News.com, London

04 August 2009

Bahamian Prime Minister Hubert Ingraham has announced that, following the Bahamas’ commitment to adhere to the OECD standard on transparency and information exchange and begin negotiations with third countries in March 2009, it is nearing the conclusion of several agreements, and will conclude at least twelve agreements by the end of the year.

According to a statement from the government, negotiations with Canada, the United Kingdom, Australia, Spain, Germany, France, Turkey, and the Nordic countries (Norway, Sweden, Finland, Denmark, Iceland, Greenland and the Faroe Islands) for Tax Information Exchange Agreements (TIEAs) are ongoing, but will be concluded by end-2009 in order to gain a place on the OECD’s white list of territories that have substantially implemented the internationally agreed standard.

Negotiations have also recently been initiated with China, and the Bahamas proposes to extend an offer to initiate negotiations with Mexico, Brazil, Ireland, South Africa and India.

In order to facilitate increased cooperation with third country’s tax authorities, the government has announced legislative amendments to the Criminal Justice (International Cooperation) Act, which will enable information in relation to tax offences to be transferred upon request.

“The government is confident that these activities will allow the Bahamas to meet the Exchange of Information standards that have been set by both the G-20 and the OECD on the shortest possible timetable and within the given timeframes, in order to avoid any potential adverse listing,” concluded the government’s statement.

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