CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Bermudian Assembly Approves Tax Information Exchange Law

Bermudian Assembly Approves Tax Information Exchange Law

by Amanda Banks,, London

23 December 2005

Bermuda's House of Assembly has voted to approve new legislation facilitating the exchange of tax information with other nations in a bid to cooperate in the stamping out of international tax evasion.

The International Cooperation (Tax Information Exchange Agreements) Act 2005, introduced into the Assembly by Finance Minister Paula Cox last week, is umbrella legislation that will give effect to Tax Information Exchange Agreements with countries in the OECD and the European Union.

The bill, which was passed in committee and sent to the Senate, comes hot on the heels of Bermuda's sealing of a TIEA with Australia, which was signed by Ms Cox and Australian Treasurer Peter Costello in Washington, DC in November. The agreement marks the first treaty that Bermuda has entered into following a commitment to ban harmful tax practices five years ago. Bermuda's first TIEA was signed with the United States in 1988.

The Australian authorities have recently escalated their enforcement activities involving offshore transactions, and had been keen to initiate a tax information exchange deal with Bermuda after it became apparent that a significant proportion of funds flowing in and out of the country were being transmitted through offshore territories.

"I understand that both Australia and Bermuda are committed to ensure that their financial sectors are not used for money laundering or the financing of terrorism," Ms Cox quoted OECD Chairman on Fiscal Affairs Bill McCloskey as stating.

"Bermuda has already has a strong track-record in this respect," she added.

According to Cox, tax exchange agreements would not only distance Bermuda from its old "tax haven" label, but also boost trade in financial services and improve commercial relations.

"As such it is important to our national economic interest that Bermuda directly negotiates with such countries," she stated.

Ms Cox revealed that Bermuda was negotiating with the UK towards the completion of an updated TIEA and was also in diplomatic contact with Mexico.

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »