HAMILTON, Bermuda, Thursday August 24, 2017 – Bermuda’s lucrative international business sector has received a much-needed stamp of approval from the Global Forum on Transparency and Exchange of Information for Tax Purposes.
In a review of 10 jurisdictions conducted in 2016, the British Overseas Territory was deemed “largely compliant”, maintaining the level of compliance it achieved in a previous assessment in 2013.
The review followed a six-year process during which the Global Forum assessed the legal and regulatory framework for information exchange (Phase1), as well as the actual practices and procedures (Phase 2) in 119 jurisdictions worldwide.
Bermuda’s Premier and Minister of Finance David Burt hailed the outcome, attributing the positive rating to the hard work of Government officials.
“This is tremendous news and excellent for Bermuda,” he said.
“My thanks to all involved in securing this important outcome. This result is a testament to the hard work of the team in the Ministry of Finance.”
He stressed that it was an “important test” that Bermuda had to pass with a European Union (EU) blacklist looming
“It is good news for the local industry, boosting confidence in Bermuda as an international business centre. A bad rating would have most certainly guaranteed Bermuda to be blacklisted by the EU, and it is through Bermuda’s commitment to compliance that we can avoid such a result,” he said.
In the review, Ireland, Mauritius and Norway received an overall rating of “compliant.” Australia, Bermuda, Canada, the Cayman Islands, Germany and Qatar were rated “largely compliant.”
Jamaica was rated “partially compliant,” which led the Global Forum to launch a supplementary review of follow-up measures to ensure a higher level of compliance.
The Global Forum is the continuation of a forum which was created in the early 2000s, in the context of the OECD’s work, to address the risks to tax compliance posed by co-called non-cooperative jurisdictions.
The original members of the Global Forum consisted of OECD countries and jurisdictions that had agreed to implement transparency and exchange of information for tax purposes.
The Global Forum was restructured in September 2009 in response to the G20 call to strengthen implementation of these standards.