Offshore News: February 2010

5.02.2010: Bermuda and Japan signed bilateral agreement under the OECD model Tax Information Exchange Agreement, for the full exchange of information in criminal and civil tax matters. Bermuda also announced that an agreement with South Korea is to be signed in the nearest time.
Among the benefits received by Bermuda within the TIEA there is a clause for Prohibition of Prejudicial or Restrictive Measures and mini Double Taxation Agreement providing benefits for students and pensioners.
Bermuda's Minister of Finance commented on the agreement saying that it would further enhance the position of the jurisdiction as a territory that draws in considerable international business. According to the government of Bermuda, the TIEA and Protocol with Japan includes all standard means to ensure due process is followed in tax information requests to Bermuda, including the provisions aimed to protect the confidentiality of information provided, adhering to public policy, provisions related to protecting legal privilege, anti-fishing provisions to ensure that requests for information from Japan are relevant to ongoing tax investigations being conducted by Japanese authorities.

12.02.2010: The Organisation for Economic Co-operation and Development (OECD) released for public comment draft documentation for implementing streamlined procedure for portfolio investors to claim reductions in withholding rates, pursuant to tax treaties or domestic law in the source country. Interested parties are invited to send their comments on the Implementation Package before August 31, 2010.
The release is the work of the Informal Consultative Group (ICG) on the Taxation of Collective Investment Vehicles and Procedures for Tax Relief for Cross-Border Investors (ICG) which was established in 2006 by OECD's Committee on Fiscal Affairs (CFA).

20.02.2010: The United States Treasury Department welcomed the FATF statement where the intro-governmental body had blacklisted 8 countries for alleged money laundering and terrorism financing. The global anti-corruption organization identified the countries that have strategic deficiencies in alleged money laundering and terrorism financing. Among them there are Iran, Pakistan, Angola, Ecuador, Ethiopia, North Korea, Turkmenistan, Sao Tome and Principe.