LEGAL - Bermuda signs TIEA with Indonesia

The TIEA, which is the Island’s 25th signed agreement, provides for a full exchange of information on criminal and civil tax matters between the two countries. 

Negotiations took place between the two parties at the Ministry of Finance in Bermuda a year ago and the TIEA was signed at the Indonesian Embassy in London. (source)

“The signing of our newest TIEA helps solidify our relationship with an economy that is important to the global financial system,” said the Premier. “The Republic of Indonesia is a member of the G20 in the Asia Pacific region, the world’s third-largest democracy, the world’s largest archipelagic state and home to the world’s largest Muslim population.

“Bermuda continues to strengthen its position as a domicile for the sharia compliant international financial services industry such as re-takaful (re-insurance), mutual fund and trust business. We consider the Republic of Indonesia as a key strategic relationship that Bermuda is keen to foster. Resultantly Bermuda works closely with the Republic of Indonesia in international co-operation through the internationally agreed tax standard in which TIEAs are an important part.”

The signing follows Bermuda’s hosting of the Global Forum on Transparency and Exchange of Information on Tax Matters at the end of last month and start of this month.

The Island is the only small jurisdiction at the vice-chair level on the Global Forum Steering Group and was among the first to volunteer to be peer assessed, with the assessment showing that all elements were in place, with some recommendations. And following the April 2, 2009 Group of 20 meeting in London, Bermuda was the first jurisdiction to reach the target of 12 signed TIEAs and rise to the White List.

“Such success clearly reveals to world tax officials that Bermuda has earned its reputation as a blue chip, international, financial centre that carries out best practice to deter illegal activity against any country’s tax system,” said Ms Cox.

Brad Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers and one of the key industry stakeholders in support of Bermuda’s TIEA programme, said: “We congratulate the Premier and the Ministry of Finance on completion of the TIEA with Indonesia. The country is an enormous growth market in the 21st century.

“It’s critically important for Bermuda to build relationships with emerging economies around the world. Marine, aviation, energy, property and liability are all important markets in this country. Indonesia and Southeast Asia are important markets for Bermuda’s re/insurers. Bermuda’s Takaful legal framework helps insurers work with this market.”

Source : http://www.royalgazette.com/article/20110623/BUSINESS01/706239909 - June 23, 2011