Canada, Barbados Amend DTA

by Mike Godfrey, Tax-News.com, Washington

10 November 2011

Canada and Barbados have inked a protocol to their existing double tax agreement, designed to bring the treaty up to date with modern standards on the exchange of information.

The Protocol updates the original Agreement, signed on January 22, 1980. It includes provisions to ensure that Canada has an effective exchange of tax information with Barbados in accordance with the internationally agreed standard developed by the Organization for Economic Co-operation and Development. It is intended that the Protocol will assist Canadian tax authorities in the administration and enforcement of Canada’s tax laws.

According to the Canadian Finance Ministry, the revised treaty reflects the government's strong resolve in pursuing efforts to improve tax fairness and to prevent international tax evasion, and is consistent with government policy as outlined in Budget 2007. In addition, the Protocol supports Canada’s commitment as a G20 member to promote the effective exchange of tax information and to protect its public finances and financial systems.

Announcing the deal, Finance Minister Jim Flaherty said: “This is another step in Canada’s ongoing efforts to combat tax evasion and ensure greater fairness for hard-working Canadian taxpayers. I would like to thank the government of Barbados for working with Canada to create greater fairness for the people of both our nations.”

Canada and Barbados will notify each other once their respective domestic implementation procedures are complete. The Protocol will enter into force on the date of the later of these notifications.

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