Bermuda, Canada To Share Tax Info

by Robert Lee, Tax-News.com, London

16 June 2010

Bermuda’s Minister for Finance, Paula Cox has welcomed the signing of a tax information exchange agreement with the Canadian government, on June 14, 2010, in Bermuda’s capital Hamilton.

The tax information exchange agreement upon entry into force will allow for the mutual exchange of tax information between the two countries’ tax authorities to assist in civil tax matters and investigations into the perpetration of tax crimes.

Commenting after the signing, Bermudan Minister for Finance, Paula Cox, said:

“I am delighted for Bermuda to have today signed this agreement with Canada. Bermuda and Canada have enjoyed a strong and fulsome relationship over the past 150 years, covering a wide range of interests including economic development, education, health care and tourism. Canadian companies are hugely involved in the captive, hedge fund and private equity areas of the International Business sector and more recently in the banking arena.”

“Currently, there are 1,145 entities with Canadian interest, and this number is expected to grow exponentially. Indeed, at the annual Canadian Captive Conference in Toronto last week, which was attended by representatives of the Bermuda Monetary Authority, and a large number of local industry representative, [the signing of a TIEA with Canada] was noted by many as a significant step forward both in enhancing business ties and investment opportunities between [our two countries].”

The agreement is based on the Organisation for Economic Cooperation and Development’s internationally agreed standard on exchange of tax information. According to the text of the agreement, it will enter into force on the thirtieth day after both parties have completed their individual ratification procedures.

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