Minister Comments: Chinese Business Reports
Minister of Finance Bob Richards today responded to recent news stories about beneficial ownership information that was last year hacked from two of the BVI’s numerous incorporation agencies.
Minister Richards noted that numerous international news agency articles circulating this week regarding Chinese persons related to the BVI incorporation agencies data has raised questions about small island international financial centers.
The Minister said: “Bermuda has no client secrecy provision that can withstand a Tax Information Exchange Agreement (“TIEA”) Request. My powers eliminate any attempt to withhold information I seek under the provision of TIEAs.
“Bermuda Ministers of Finance were among the first to eliminate any attempts at secrecy. We obtained this TIEA power decades ago by signing one of the earliest TIEAs, the 1986 tax treaty with the United States of America.”
Minister Richards added: “Today Bermuda has 41 signed bilateral TIEAs, including one signed with China in December 2012, and we have over 60 multilateral TIEA partners through Bermuda’s recent adoption of the Multilateral Convention on Mutual Assistance in Tax Matters. Our TIEA network is Global. Any country that has cause to seek information from Bermuda under the provisions of any of our TIEAs we are pleased to assist them to the fullest.”
Minister Richards emphasized that Bermuda’s TIEAs combined with Bermuda’s unique long established Government held central registry on beneficial ownership is a strong deterrent against money laundering and tax evasion.
The Minister said: “Our Government-held central registry on beneficial ownership has existed since the 1940s.Bermuda’s commitment to assist the international community to discourage money laundering and tax evasion is well established.”
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The questions I would like to see answered are these: How many requests has Bermuda received for tax information, and how many of those have been challenged in court, and what was the outcome of those cases? I think that should give proof of the Island’s real performance in tax compliance measures, or lack thereof.
David Marchant of Offshore Alert has a MUCH different opinion than Mr. Richards. Not saying who is right and who is not, but there is a wide variance in opinion.
i agree.