U.K. and Bermuda Sign Tax Information Exchange Agreement

On December 4, 2007, the United Kingdom and Bermuda signed a tax information exchange agreement, accompanied by an exchange of notes. Interestingly, the exchange of notes states that the U.K. believes the TIEA shows Bermuda’s commitment to meet the aims and objectives of the OECD Global Forum on Taxation with respect to effective exchange of information with respect to both criminal and civil taxation matters. Most importantly, if a territory (e.g., the U.K.) applies prejudicial or restrictive measures based on harmful tax practices to residents or nationals of the other territory (e.g., Bermuda), the other territory (e.g., Bermuda) may suspend the operation of the TIEA for so long as such measures apply...[more]