Premier and Minister of Finance Paula Cox yesterday [Apr. 8] expressed her pleasure at the results of the most recent assessment report of the Organisation for Economic Cooperation and Development [OECD] Peer Review Group [PRG].
Bermuda was credited for legislative changes that have demonstrated progress and global leadership in the area of transparency and tax information exchange.
In the original 2010 PRG Assessment report, Bermuda received eight of eight”‘element in place” and a Supplementary Assessment listed four additional recommendations for consideration.
In this most recent PRG Assessment, the OECD deleted two of these Recommendations as a nod to Bermuda’s significant progress in these areas. Specific achievements noted were the Competent Authority Agreements for administrative matters under Bermuda’s Tax Information Exchange Agreements [TIEAs] and the passage of the Specified Business Legislation Amendment Act 2011.
“These positive reviews benefit Bermuda as we take action to further enhance our international business product,” said the Premier. “Transparency and cooperation are key to the long term survival of our economy. A positive PRG assessment is an excellent outcome that certainly serves to safeguard our status as a leading international financial centre.”
“One may ask, after signing 32 TIEAs, what is the purpose of continuing to sign TIEAs and participating in the Peer Review Group assessment regime? The answer is that it protects Bermuda’s reputation as a premier international business domicile, the bedrock of our economy.”
The Premier further noted that TIEAS provide a useful launching pad to expand Bermuda’s global network of commercial and trade relations.
“Through the TIEA negotiation process, countries that previously may not have known much about Bermuda now gain more information and background on the services that we offer,” she said. “As countries expand their commercial relations with us, we are able to diversify our global business network and further grow our economy by expanding into new markets.
“The TIEAs are bringing results, as our global partners are taking note of Bermuda. During a recent trip to New York and Washington DC, Business Bermuda leveraged TIEA relationships to meet with a number of Consulates to promote business opportunities in Bermuda. These engagements will lead to growth in our economy which will provide opportunities for our service providers and create jobs in Bermuda.”
“Bermuda is a Vice Chair of the OECD Global Forum and firmly supports the work of the PRG because no one jurisdiction should profit from unfair competition in financial services. Jurisdictions that refuse to abide by the PRG’s global assessment regime may be viewed as raising the possibility of facilitating tax evasion, now recognised as a form of money laundering. Refusing to comply with the PRG assessment regime allows distortion by such jurisdictions taking business from Bermuda and other compliant jurisdictions.”
–BernNews
