Bermuda Signs TIEA with Argentina
Wednesday August 24 2011 | 06:02 AM

Bermuda’s Premier and Minister of Finance the Hon. Paula A. Cox has announced the signing of a bilateral Tax Information Exchange Agreement, (TIEA), between Bermuda and Argentina.

The agreement, which was signed for Argentina by Dr. Ricardo Echegaray, Head of the Argentinean Federal Administration of Public Revenue (AFI), and Premier Cox for Bermuda, provides for a full exchange of information on criminal and civil tax matters between the two countries and includes provisions to protect the confidentiality of information provided, as well as adhering to public policy and provisions related to protecting legal privilege. It ensures that requests for information from the Government of Argentina are relevant to tax investigations being conducted by Argentinean authorities.

Commenting on the signing, Premier Cox said she was pleased to conclude the treaty noting that Argentina is a crucial market particularly for Bermuda’s re-insurance industry. “This treaty relationship enhances the dealings between the two countries and enables us to pursue more matters of mutual interest. Our TIEA with Mexico has recently come into force and today’s TIEA with Argentina is also communicating the message that Bermuda recognizes the value of opening trade relationships with the Latin American market. We are also communicating that diversification of the economy is not just about diversification of industries but of diversifying our strategic linkages and economic partnerships.”

Welcoming a number of senior representatives from Bermuda’s business community who were on hand to witness the TIEA signing, the Premier said that all were vitally important in helping to generate economic activity in Bermuda.

“Bermuda knows that international business is a key driver of revenue for the country and for our GDP and that the TIEA’s we have signed with our many trading partners around the world contribute to strengthening our international reputation. It is the quality of our international reputation that domestic infrastructure that attracts and retains international business,” she said.

There were, the Premier said, two key elements of the internationally agreed standards:

“We welcome the signing with Argentina as another opportunity to emphasize that Bermuda’s business model is a positive and well balanced component of the global financial system committed to international cooperation to prevent illegal activity such as breaking any country’s tax law and simultaneously fostering legitimate global trade and doing our part to return the global financial system to full strength.”

“Bermuda looks forward to building upon the treaty relationship which had been established with Argentina. We will work to enhance our strategic relations with the Argentineans and with Latin American members and so create a better understanding of Bermuda and our positive role in global finance,” she said.

The Premier noted that several TIEA’s had been signed by Bermuda with various countries and were waiting for those countries to ready themselves to sign the negotiations.