The British Virgin Islands government has announced the signing of a Tax Information
Exchange Agreement (TIEA), on October 5, with Germany.
Dancia Penn, the BVI’s Deputy Premier and Minister of Health and Social
Development, signed the agreement in London with Germany’s Ambassador to
the United Kingdom, Georg Boomgaarden.
The agreement is the 18th signed by the British Virgin Islands. The TIEA is based
on a model agreement developed by the Organization for Economic Cooperation
and Development (OECD). It allows both parties to request information from the
respective countries’ tax authorities to assist in civil or criminal tax
investigations.
In a joint declaration, the BVI and Germany stated that the agreement represents
a milestone in relations between the two governments, and that both are committed
to examining other areas of mutual co-operation and benefit.
The Joint Declaration states:
“The Federal Republic of Germany and the British Virgin Islands have
long been active in international efforts in the fight against financial crimes
and each share a common commitment to develop and comply with international
standards on money laundering, terrorist financing and financial regulation.
The BVI's cooperation in fostering these international standards enhances its
reputation as a globally-integrated and responsible financial centre.”
Penn specifically welcomed the inclusion of a protocol to the agreement providing
that BVI and Germany had no intention to introduce, in relation to residents
or nationals of each territory, any discriminatory, prejudicial or restrictive measures
based on harmful tax practices so long as the agreement is in force and effective.
The BVI has also signed TIEAs
with Ireland, the Netherlands, the Netherlands Antilles and Aruba, the United
States, the United Kingdom, Australia, New Zealand, France, China, and the Nordic
countries (Sweden, Norway, Finland, Denmark, Iceland, The Faroes and Greenland).
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