Source: Kinga Warda¸ PKF Malta

A tax information exchange agreement between Malta and Bermuda has been signed on November 24¸ 2011. The agreement took place in London. It was signed by Maltese High Commissioner to the UK H.E. Joseph Zammit Tabona and Bermuda Premier Minister Paula Cox. Both Governments agreed to facilitate the exchange of information with respect to taxes.

Bermuda Premier said this was evidence of the commitment Bermuda was showing towards being a responsible player in the global finance sector. The agreement was the next step to strengthen international co-operation. It also continues to promote Malta’s stance in developing itself as a reputable and well-regulated onshore international financial centre. Ms Cox said: “The value of signing this¸ our newest TIEA¸ is a protective and pre-emptive measure to strengthen Bermuda’s position so we are exempt from harsher more punitive future legislative measures.”

Bermuda is an important regional and global offshore financial center. It has large insurance and reinsurance sectors. The TIEA with Malta marks Bermuda’s 30th Agreement for the exchange of information on tax matters. Signing TIEAs enables Bermuda to maintain its reputation as an international financial centre that meets international standards with respect to information exchange and transparency¸ and reinforces their position in the international market place.

The Agreements represent the standard of effective exchange of information for the purposes of the OECD’s initiative on harmful tax practices. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information. The purpose of the TIEA is to act as a tool in the fight against fiscal crime.