Bermuda Signs TIEA With Czech Republic

Yesterday [Aug.15] Bermuda signed a Tax Information Exchange Agreement [TIEA] with the Czech Republic, which provides for a full exchange of information on civil and criminal tax matters between the two countries. Pictured below on the steps of Camden are Premier Paula Cox and Ladislav Minčič, 1st Deputy Minister of the Czech Republic.

The Premier’s full statement is below:

To our distinguished guests, the Honourable Ladislav Minčič, 1st Deputy Minister of the Czech Republic and your delegation, to Bermuda Cabinet Ministers and Senators present, other distinguished guests, civil servants and media representatives, on behalf of the people of Bermuda I am pleased to welcome today the signing of this bilateral tax information exchange agreement (the “TIEA”) with the Czech Republic.

This TIEA provides for a full exchange of information on civil and criminal tax matters between our countries and includes safeguards for tax payers and confidentiality provisions for each country’s Competent Authority in accordance with the standard of the OECD Model TIEA.

Bermudians understand that our economy relies on International business and Tourism and while there is a constant analysis on ways to further diversify our economy and grow it we must at the same time protect what we have. TIEAs play an important part in all of those areas.

Having a first class reputation in the arena of international cooperation for tax purposes is key in today’s World. Bermuda was the first country to ascend to the White List in the months after its creation on April 2nd, 2009 and our favourable Peer Review Group assessment has reinforced our position.

Signing the TIEA with the Czech Republic enhances Bermuda’s strategic relationship with the EU. My fellow Bermudians will recall I recently visited EU officials in Brussels where I noted that TIEAs and the work of the Global Forum on Transparency and Exchange of Information for Tax purposes are an important consideration in many spheres.

The Presidency of the EU revolves and it follows that the Czech Republic will again have the presidency of the EU in addition to its constant representation at the EU Parliament.

The Czech Republic is an important part of the EU having joined the organization in 2004 along with seven other Central and Eastern European countries, in the biggest enlargement the EU has experienced to date.

I trust that my signing the TIEA today and having the chance to chat one on one with the Honourable Ladislav Minčič about EU matters will enhance our strategic relations with selected EU members who better understand Bermuda and our positive role in global finance.

I am pleased to have moved closer to achieving one of Bermuda’s strategic objectives of establishing TIEA relationships with key members of the EU.

Bermuda, as a Vice Chair of the Steering Group, is the only small country in the leadership structure of the new Global Forum on Transparency and Exchange of Information for Tax Purposes embodied at the 2009 Mexico City Global Forum.

We firmly support the standard established by the G20, OECD and the EU that TIEAs, combined with the Peer Review Group assessments of the effectiveness of each country’s TIEAs, underpin the internationally agreed tax standard.

The EU is a significant trading block in the global financial system, it is the 20th member of the G20 and very relevant to Bermuda’s economy and culture.

The EU participates in the Global Forum on Transparency and Exchange of Information for Tax purposes and representatives of the EU attended the Global Forum’s meeting in Bermuda this past June.

Our TIEA signed today establishes the Czech Republic as the 11th member of the EU to have a TIEA with Bermuda and is our 26th signed agreement for exchange of information for tax purposes. Several TIEAs with further members of the EU are waiting for those countries to ready themselves to sign, the negotiations having been completed some time ago.

We welcome the signing of the TIEA today as another opportunity to emphasise that Bermuda’s business model is a positive and well balanced component of the Global Financial system committed to international cooperation to prevent illegal activity such as breaking any country’s tax law and simultaneously fostering legitimate global trade doing our part to return the global financial system to full strength.

I look forward to building upon the treaty relationship established today with the Czech Republic.

Thank you.

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Category: All, Business