The Bermuda Government launched a new Tax Information Reporting Portal today - an important and necessary initiative arising out of new international requirements.
The Ministry of Finance is taking steps to ensure Bermuda is in compliance with the latest global tax cooperation standards.
Deputy Premier and Minister of Finance the Hon. E.T. Richards JP MP stated that the project has been completed after many man hours and significant expense.
The new rules mandate how countries collect information on (1) the financial account information of individuals and persons (CRS) and (2) the operations of multi-national companies (CBC), to the benefit of interested tax authorities.
Bermuda’s automatic exchange of information (AEOI) Portal’s operation confirms the Minister has met international tax cooperation obligations under the OECD CRS (Common Reporting Standard) and OECD CbC (Country-by-Country) AEOI regimes.
Bermuda is the first UK Overseas Territory to join the OECD BEPS (Base Erosion Profit Shifting) committee known as the Inclusive Framework.
Bermuda has also initiated renegotiation of all four of its double taxation agreements to revise them to the standard articulated by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the Multilateral Instrument).
The Minister commented, “Today’s launch of Bermuda’s AEOI portal is a milestone in protecting Bermuda as a leading international financial centre. It is impossible to remain a viable centre in today’s compliance climate without conforming to the OECD AEOI regime, especially as it is required by both the European Union and the G20 to meet their standard for international cooperation on tax matters.
Minister Richards emphasized: “Bermuda is an AEOI Early Adopter jurisdiction, meaning that Bermuda’s Portal will receive year 2016 CRS and year 2016 CBC information from Bermuda persons and share the information with all countries that are also AEOI Early Adopters for year 2016 CRS and CBC information.”
The Minister continued, “Many of the large countries are late comers by only collecting and sharing under the OECD AEOI regime starting with either year 2017 information or year 2018 information.
“This includes some of the EU, G20 and OECD countries - some of the very countries promoting these very standards.”