Bermuda's Tax Transparency Lauded By OECD

by Phillip Morton, Investors Offshore.com

11 October 2010

Bermuda has welcomed positive feedback from the Organization for Economic Cooperation and Development’s Global Forum on Transparency and Exchange of Information for tax purposes, with respect to its adoption of best standards in terms of tax transparency.

Bermuda noted that the territory was only one of two jurisdictions that were considered to have met all criteria identified by the peer review methodology.

At the recent OECD Global Forum in Singapore, Bermuda’s peer review report was adopted by the full Global Forum membership, comprising of more than 90 jurisdictions, following a six-month exhaustive review process covering all aspects of Bermuda’s legal and regulatory framework against ten identified essential elements. Each jurisdiction's review includes determinations reflecting the extent to which the essential elements are in place there and recommendations for improvement where needed.

Minister of Finance for Bermuda, Paula Cox, said:

“Bermuda has much to be proud of; we are recognized by our peers as having all the essential elements in place as identified and agreed upon by the Global Forum relating to our legal and regulatory framework for transparency and exchange of information.”

“To have been included in the first wave of the peer review process, immediately following the successful completion of Bermuda’s Annual Assessment was in itself a heady proposition, but for Bermuda to be one of two countries recognized as having all elements met, with some recommendations... reflects Bermuda’s longstanding commitment to not only meeting but exceeding international standards.”

"Looking forward, the Ministry of Finance will review the recommendations put forth by the Peer Review Group, and following consultation with industry stakeholders, will respond appropriately.”

A report to the G20 in which Bermuda’s achievements are noted has been agreed upon by the Global Forum for submission to the G20 Finance Ministers and leaders for the October and November 2010 meetings.

The Chair of the Global Forum, Mike Rawstron of Australia, said at the end of the meeting: “Jurisdictions are taking the standards seriously. These reports show that this is not just a numbers game, it is about having in place a legal and regulatory framework which enables an effective exchange of information.”

The Global Forum next meets in May 2011 in Bermuda. At this meeting, a further 54 peer review reports will be submitted for adoption by the Global Forum, including the majority of OECD and G20 countries, many of whom are undergoing combined Phase 1-2 reviews. "This meeting will be the first opportunity for the Global Forum to fully discuss the effectiveness of the Peer Review process and the outcomes of those reviews in promoting the adoption of international standards of transparency and exchange of information," the Bermuda government said.

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