[OffshorePrivacy]

Luxembourg and Austria Sign Tax Information Exchange Accord

Austria and Luxembourg have signed an accord to amend an existing double taxation treaty so that it provides for the exchange of tax information. Austrian finance minister, Josef Proell, at the time of signing, said: "This agreement with Luxembourg is an important step forward in fulfilling our duty to adopt the new OECD standards for tax transparency. This is our first amendment to an existing treaty to adapt it to the new Article 26 OECD standard". In future bank information can also be passed on, subject to a formal request backed up with evidence.

Proell finished by saying, "we keep to our word - our native bank secrecy stays put. We do not excuse tax irregularities, but we say a clear no to gratuitous and unfounded access to account details".

[OffshorePrivacy]

New Zealand And Cook Islands Sign Tax Information Exchange Agreement

New Zealand and the Cook Islands have signed a Tax Information Exchange Agreement between their two countries as part of international efforts to strengthen cooperation in this area. It was also agreed to establish an annual Joint Ministerial Forum that will further strengthen the special relationship between the Cook Islands and New Zealand.

The Agreement provides for full exchange of information on criminal and civil tax matters between the two countries, according to New Zealand’s Revenue Minister, Peter Dunne. "We welcome the signing of this important Agreement with the Cook Islands, with whom we have a close historical, economic and cultural relationship," he said.

"The Agreement will enable the tax authorities of both countries to gain access to information about income and assets that would-be evaders try to hide in the other country,” he continued. "Having access to that information is especially important at a time when countries everywhere are doing all they can to protect their tax bases."

Mr. Dunne said that the Agreement will cover "not only information held by banks and other financial institutions, but also information on who benefits in company ownership chains and on the settlors, trustees and beneficiaries of trusts."

New Zealand’s Prime Minister, John Key, who signed the agreement on behalf of New Zealand, said: “Regular high-level political engagement between our two countries will play an important role in assisting the Cook Islands in developing its economy and also reflects the strong relationship that underpins our partnership.”

Mr Key also highlighted New Zealand’s increased official development assistance funding to the Cook Islands which will increase from NZD11m to NZD14m this year, and then to NZD17m in 2011/12. “This assistance, delivered through NZAID,” he said, “will focus on support for activities which contribute to sustainable economic development.”

New Zealand already has a Tax Information Exchange Agreements with the Netherlands Antilles and Bermuda. Several others are expected to be signed over the next few weeks.

[OffshorePrivacy]

Germany And Liechtenstein Agree On Tax Information Exchange

Liechtenstein and Germany have initialled a tax information exchange agreement. The text of the agreement follows the OECD Model Tax Convention and provides for an exchange of information on request. The agreement will come into force once the ratification process has been concluded and will be effective from the beginning of the 2010 tax year.

"This agreement is an important step in our relationship with Germany. It also gives a clear signal with regard to other current negotiations which we want to conclude swiftly in order to implement the OECD standards', said Prime Minister Klaus Tschütscher. 'The text of the agreement initialled today is analogous to the agreement concluded with the USA back in December 2008. It provides for a due process in the exchange of information between Germany and Liechtenstein and thus offers legal security for clients and financial intermediaries."

[OffshorePrivacy]

Singapore And France To Sign Agreement To Exchange Tax Information

During a meeting in Singapore, Singapore and France have agreed to work expeditiously to sign a Protocol to incorporate the standards drawn up by the Organization for Economic Co-operation and Development (OECD) for the exchange of information for tax purposes into the existing bilateral Double Taxation Agreement between the two countries, later this year.

Singapore was among the countries and territories listed by the OECD for not fully implementing its standards to combat tax evasion. However, earlier this year, Singapore indicated its commitment to the standards, and said it planned to amend its tax legislation to allow it to cooperate with other countries in accordance with them, so that it would be removed from the list. It is hoped that the accord with France could speed up this process.

At the meeting, Singapore’s Minister for Finance, Mr Tharman Shanmugaratnam, and France’s Minister for the Budget, Public Accounts, Civil Service and State Reform, Mr Eric Woerth, further agreed that a multilateral, transparent and impartial framework would be necessary to drive and monitor the implementation of the standards by all jurisdictions, whether onshore or offshore.

According to M. Woerth, the planned Protocol will “allow for the exchange of information on citizens suspected of hiding money in each other's banking systems. It's impossible now... (but) this agreement allows for the exchange of information on residents to fight fraud."

[OffshorePrivacy]

Cayman Islands Approaches 12 TIEAs

At a press briefing on July 17, the Leader of Government Business, McKeeva Bush optimistically reported that the government was nearing removal from the OECD’s grey list; an imminent agreement, to be signed with New Zealand, should place the jurisdiction upon the OECD’s list of territories that have ‘substantially implemented the internationally-agreed standard’ on transparency and information exchange.

“The Cayman Islands now has eleven such bilateral agreements in place,” he declared. “It is my intention to secure the twelfth agreement in short order so that the Cayman Islands can be removed from the OECD ‘Grey List’. I’m hoping to sign it this month, and I’ll make an announcement a little later,” he disclosed.

Addressing fallacious concerns that the OECD planned to increase the quota of twelve TIEAs as agreed by G20 countries on April 2 in order to encourage countries to conclude agreements with larger, more significant countries, Bush stated:

“I realise there are some concerns being aired regarding the possibility of the OECD moving the goal post so to speak or that the stated number of twelve agreements may be changed. However based on the discussions I have had with OECD officials, this is highly unlikely.”

Bush added that the Cayman Islands would continue to broaden its network of TIEAs to include ‘the biggest and most reputable countries’, as encouraged by the OECD. To this end, he disclosed that several agreements are at an advanced stage with Italy, Mexico, Germany, France, Australia, Portugal and Canada.

He underlined that as a cooperative jurisdiction, the Cayman Islands would be better placed to preempt developments in the field of information exchange as well as contributing in decision making discussions at the forthcoming OECD Global Forum on Transparency and Exchange of Information to be held in Mexico.

“Our attendance at this meeting will enable the Cayman Islands to have a seat and a voice at the table during the important discussions on the status of the OECD transparency initiative generally and what type of framework may be put in place to monitor the process of implementation across countries.”

“It is best to participate in these initiatives as it gives us not only full insight into what is being planned and discussed, but also an opportunity to provide our own direct input into a process which will inevitably affect us in the future.”

In an additional statement on the matter, Anthony Travers, Chairman of the Cayman Islands’ Financial Services Association, lauded progress on enhancing transparency with other countries.

“We await further clarification on the new OECD approach, but believe it plays to Cayman’s strong suit,” Travers noted. “Cayman has unmatched regulator-to-regulator transparency amongst the offshore financial centres and an unparalleled record of cooperation with all treaty partners seeking tax or all crimes and money-laundering information. Accordingly we have no doubt that the Cayman Islands will exceed any standard set in relation to actual compliance with treaty requests made.”

[OffshorePrivacy]

Guernsey Signs TIEA With New Zealand

Guernsey’s Chief Minister, Lyndon Trott, on July 21 signed a Tax Information Exchange Agreement (TIEA) with the New Zealand government.

The signing took place at the New Zealand High Commission in London.

The New Zealand agreement brings the total number of TIEAs signed by Guernsey to fourteen and is the twelfth signed by Guernsey with a Member State of the Organisation for Economic Co-operation and Development (OECD).

This means that in addition to being included on the G20 ‘white list’ published on April 2, 2009, Guernsey will now also be regarded as having substantially implemented the OECD’s internationally agreed tax standard on exchange of information.

Chief Minister Trott said: “Our recognition by the G20 was an important milestone for Guernsey’s future as an international financial centre, but we have not stopped there.”

“In addition to this agreement with New Zealand, Guernsey is continuing to negotiate the conclusion of TIEAs with many more countries and we will be signing further TIEAs in the coming months.”

Unlike previous TIEAs, the agreement with New Zealand is a composite one, instead of there being separate agreements where additional benefits are agreed. The agreement covers exchange of information and the allocation of certain taxing rights for individuals, but each of the provisions is comparable to those in the other TIEAs signed by Guernsey.

When the agreement enters into force, Guernsey will, on request, exchange bank and other information relating to both criminal and civil tax matters.

“Signing up to TIEAs demonstrates the island’s transparency and commitment as a premier international finance centre,” added Trott.

Also signed at the meeting was a political joint declaration, further establishing the economic relationship between the governments of New Zealand and Guernsey. The island can expect to gain legislative recognition in New Zealand to the benefit of Guernsey’s finance industry.

[OffshorePrivacy]

Anguilla & Turk And Caicos Islands Sign TIEAs With Ireland

Ambassador of Ireland to the United Kingdom, Bobby McDonagh, signed Tax Information Exchange Agreements with Anguilla and the Turks and Caicos Islands on behalf of Ireland, in London on July 22, 2009.

In a statement Irish Revenue welcomed the commitment of both Anguilla and the Turks and Caicos Islands to enter into agreements implementing the OECD standard of transparency and exchange of information in tax matters. It further noted that the signing marked a new chapter in relations between Ireland and both jurisdictions.

The Tax Information Exchange Agreements (TIEAs) are based on a model agreement developed by the Organisation for Economic Co-operation and Development (OECD). They will allow the Revenue Commissioners to request information from their counterparts in both Anguilla and the Turks and Caicos Islands that is relevant to an Irish tax investigation. Such information would typically relate to bank accounts or the beneficial ownership of companies or trusts. Likewise, Anguilla and the Turks and Caicos Islands authorities may request the Revenue Commissioners to obtain and provide information of relevance to their tax investigations.

Ireland has recently signed TIEAs with the Cayman Islands, Isle of Man, Jersey, Guernsey and Gibraltar.

[OffshorePrivacy]

Anguilla Signs Tax Agreement With UK

The Caribbean jurisdiction of Anguilla signed its first Tax and Information Exchange Agreement (TIEA), with the United Kingdom, on July 21.

The agreement, which will allow the sharing of tax-related information to the Organisation for Economic Co-operation and Development’s (OECD) standards, was signed in London by Chris Bryant, UK Parliamentary Under Secretary of State at the Foreign and Commonwealth Office and Osbourne Fleming, Chief Minister of Anguilla.

The taxes covered by the arrangement in the case of the UK include income tax, corporation tax, capital gains tax, inheritance tax and value-added tax. In the case of Anguilla, the taxes covered by the TIEA include property tax, stamp tax, accommodation tax, the vacation residential asset levy and various duties, fines and other levies in relation to the import, export, transshipment, storage and circulation, among other things, of certain goods.

Welcoming the signatures, UK Financial Secretary to the Treasury, Stephen Timms MP, said: “Information exchange is a vital tool in ensuring that governments receive the revenues they need to resource the essential public services on which we all depend. I very much welcome the fact that Anguilla has joined the growing number of jurisdictions making good on their commitments to apply high standards of transparency and exchange of information in tax matters.”

HM Revenue and Customs Permanent Secretary for Tax, Dave Hartnett, added: “The information exchange provisions in this arrangement meet international standards and are especially welcome for that. HM Revenue & Customs is playing its part to help ensure that ultimately there will be no offshore financial centres that facilitate avoidance and evasion.”

The text will shortly be laid as a Schedule to a draft Order in Council for consideration by the UK House of Commons. The agreement will come into effect as soon as each government has completed the necessary procedures to give effect to it under its domestic laws.

The UK has now signed six comprehensive TIEAs, including with Guernsey in January and with Jersey in March 2009. The UK also exchanges information with over 100 countries worldwide under Double Taxation Agreements, the provisions of EU Directives and Regulations, and through the Council of Europe/OECD Convention on mutual administrative assistance in tax matters. The UK’s other TIEAs are with Bermuda (in force), the Isle of Man (in force) and the British Virgin Islands (signed in 2008). The UK also signed an arrangement with the Cayman Islands in June 2009 that provides, among other things, for information exchange to OECD standards. More TIEAs are being negotiated.

The government of Anguilla expects to sign more TIEAs soon.

[slogold]

do you see pattern, currently signers are mostly UK oversea territories

[Poverello]

No TIEA's signed before 2000 ?

If your country hasn't signed any TIEA's , one could feel pretty safe ?