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Bermuda signs tax information exchange agreement with France
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| Published on Monday, October 12, 2009 | Email To Friend Print Version
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HAMILTON, Bermuda -- The Minister of Finance Paula Cox, announced last week that Bermuda has signed a bilateral agreement with France that provides for a full exchange of information on criminal and civil tax matters between the two countries.
French President Nicolas Sarkozy has previously stated that countries that fail to meet global tax transparency standards by March 2010 should be punished with sanctions. Countries need to have 12 tax information exchange agreements (TIEAs) in place to satisfy the global standard established at the G20 meeting in London on April 2, 2009. Bermuda received international recognition in June 2009 for reaching the global standard with the signing its 12th TIEA with the Netherlands
Currently, Bermuda has 16 signed TIEAs in place, substantially demonstrating Bermuda’s commitment to implement the internationally agreed tax standard, and offsetting any concern arising from Sarkozy’s joint declaration with British Prime Minister Gordon Brown that the threshold of 12 TIEAs should be seen merely as a starting point in the move towards greater tax transparency. Bermuda was most recently assessed as meeting the international tax standards by the Global Forum’s annual assessment of progress, published on August 31, 2009.
In September, Bermuda was elected a Vice Chair of the Steering Group, the policy-making body of the OECD Global Forum, the only non-OECD country to hold a Vice Chair position on the Steering Group. France, like other TIEA partners, extended its praise to Bermuda for this achievement. France is Chair of the Peer Review Group which will be responsible for the universal, robust and transparent monitoring and Peer Review process.
Cox, commenting on the signing, said, “Bermuda’s ties with France extend beyond our treaty relationship to working together in a leadership position of the Global Forum to advance international cooperation in tax information exchange and to represent all members of the Global Forum in achieving a global level-playing field based on fairness and transparency.
"Through our amicable and productive bilateral negotiation process, as well as by today’s signing, our two countries have further cemented our close relationship.”
The Minister continued, “Bermuda now has TIEAs in place with France, Germany, the United Kingdom and the United States, which together lead the G20's fight against tax havens. These international agreements secure Bermuda’s position as a premier international financial centre, and reinforce the position that we offer value in the international market place in that we support real businesses offering services worldwide and we are not a jurisdiction whose growth is based on non-transparency or secrecy.
“Further, our TIEA partners recognise Bermuda as one of the first international finance centres to engage in partnership with OECD countries in the worldwide effort to achieve greater transparency and co-operation.”
Bermuda’s TIEA with France includes all standard means to ensure due process is followed in tax information requests to Bermuda.
Bradley Kading, President and Executive Director of the Association of Business Insurers and Reinsurers (ABIR), praised last week's development: “Bermuda is an important trading partner for French ceding insurers. ABIR members provide an estimated 35% of the property catastrophe reinsurance purchased through the broker market by French insurers. Bermuda companies play an important role in managing European flood and windstorm risk. In addition, Bermuda’s insurers and reinsurers will pick up an estimated 22% of the liabilities for the tragic Air France plane crash earlier this year.”
David Ezekiel, Chairman of the Association of Bermuda International Companies (ABIC) echoed Kading’s sentiments, “This is another major step forward for Bermuda. France has a major involvement in the Bermuda market by way of ownership in and trading with Bermuda-based companies and the signing of the TIEA with such a significant partner represents substantial progress. The Ministry deserves congratulations in its continuing efforts on behalf of Bermuda and the companies that operate here.” | | | | Reads : 523 | | | |
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