Bermuda, Czech Republic Ink TIEA

by Amanda Banks, Tax-News.com, London

18 August 2011

A tax information exchange agreement (TIEA) has been signed between Bermuda and the Czech Republic following the internationally-agreed standard.

The TIEA was inked by Bermuda's Premier, Paula Cox, and the first Deputy Minister of the Czech Republic Ladislav Mincic on August 15. This TIEA provides for a full exchange of information on civil and criminal tax matters and includes safeguards for taxpayers and confidentiality provisions in accordance with the standard Organization for Economic Cooperation and Development model TIEA.

According to Bermuda's ruling party, the PLP, signing TIEAs sends a message that Bermuda is open for business and committed to transparency. Commenting on the Czech Republic's position within the European Union (EU), Cox said that she believes the TIEA will enhance Bermuda's strategic relations with those EU members who "better understand Bermuda" and its "positive role in global finance". Cox added that the Czech TIEA takes Bermuda a step closer to achieving the strategic objective of establishing TIEA relationships with key members of the EU.

Cox concluded: "We welcome the signing of the TIEA today as another opportunity to emphasize that Bermuda’s business model is a positive and well balanced component of the Global Financial system committed to international cooperation to prevent illegal activity such as breaking any country’s tax law and simultaneously fostering legitimate global trade doing our part to return the global financial system to full strength. I look forward to building upon the treaty relationship established today with the Czech Republic."

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