The following statement was released by the Ministry of Finance on Thursday, April 29, 2021…
Bermuda has demonstrated a long-standing commitment to transparency and regulatory excellence over the years to build a reputation as a good place to do quality business. Considerable time and resources have been, and continue to be, invested in developing and implementing strong and robust legislative and operational frameworks to ensure compliance with international requirements.
The comparative tax differences that exist in the international arena are due to the different models that are adopted by different jurisdictions. Our tax system, which was developed in the nineteenth century, was shaped for efficiency and fairness to Bermudian taxpayers. In cross border tax and related matters, we are fully cooperative and transparent. We have a comprehensive framework that promotes reporting, detection and enforcement to enable countries to combat tax evasion.
We recognize the United States of America as a key strategic partner with whom we enjoy a close and productive relationship in business as well as in education and scientific matters. In relation to tax issues, we work closely with the United States Internal Revenue Service (IRS) through our various agreements to exchange tax information; including our tax information exchange agreement (TIEA), our Intergovernmental Agreement (IGA) under the US Foreign Account Tax Compliance Act (FATCA), and our Country by Country Reporting agreement (CbCR). Information is exchanged under these arrangements both automatically and by request. Through these and other mechanisms, we proactively work to deter and address actions to use our jurisdiction for tax evasion and other financial crimes.
Bermuda is actively involved in discussions relating to tax and other related matters, either as part of the relevant global meetings or through bilateral communication with foreign government and public officials. We will continue our work in that regard, with the US and with other key allies.