Premier Honourable Ralph T. O’Neal, OBE shares a handshake with Australian Assistant Treasurer and Minister for Competition Policy and Consumer Affairs Chris Bowen, after signing the Tax Information Exchange Agreement in London on Monday, October 27.
The Virgin Islands and
Australia have agreed to a Tax Information Exchange Agreement (TIEA), which was announced Monday by Australian Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen and Premier Ralph T. O’Neal.
The TIEA provides for full exchange of information on request in both criminal and civil tax matters and builds upon legislation in both jurisdictions which already provides for mutual legal assistance in criminal matters.
The TIEA reflects both Governments’ shared commitment to implement Organisation for Economic Cooperation and Development (OECD) principles of transparency and effective exchange of information, to eliminate harmful tax practices.
Under the terms of the TIEA,
Australia and the VI have agreed not to apply prejudicial or restrictive measures based on harmful tax practices to residents or nationals while the TIEA is in force and effective.
Further,
Australia will remove any governmental references to the VI as a ‘tax haven’ and will list the VI as an ‘information exchange country’ in the Taxation Administration Regulations 1976.This will provide residents of the VI with access to reduced withholding tax rates on distributions of certain income they may receive from Australian managed investment trusts.
In addition to the TIEA,
Australia and the VI have signed an agreement for the allocation of taxing rights with respect to certain income of individuals, which will provide benefits to Australian and VI residents.
Australia and the VI have also agreed to enter into discussions, when appropriate, to foster further co-operation in areas of mutual interest.
In response to the signing of the TIEA, Bowen said that the TIEA between
Australia and the VI demonstrates both jurisdictions’ commitment to international cooperation and effective exchange of information. The VI’s co-operation in fostering these international standards of transparency and exchange of information enhances its reputation as a globally integrated and responsible financial centre, Bowen stated
“
Australia is at the forefront of efforts to implement widespread international cooperation on tax matters and is pleased to welcome the BVI to its TIEA network,” Bowen added.
This is the fourth TIEA signed by
Australia and the second signed by the VI.
The TIEA also complements the strong commitment of the Governments of Australia and the BVI to international standards on anti-money laundering and counter-terrorism financing, as set by the Financial Action Task Force.
“The Australian Government particularly welcomes the BVI’s admission as a full member to the International Organisation of Securities Commissions, where it joins more than 100 jurisdictions with recognised high standards of regulation and compliance,” Bowen alluded.
Premier O’Neal said that the annual TIEA between the VI and
Australia represents a milestone in relations between the two jurisdictions and demonstrates both Governments’ commitment to OECD principles of transparency and effective exchange of information.“We welcome
Australia’s recognition of the high regulatory standards set by our financial centre, and our continuing constructive engagement in the OECD’s Global Forum on Taxation, which aims to reach a level playing field in international standards,” Premier O’Neal stated.
Premier O’Neal said that in addition to the TIEA, the two countries have also negotiated a further package of measures that will bring benefits to the VI, including technical assistance, non-discriminatory tax treatment and an agreement covering the allocation of taxing rights for students and Government employees.
“The BVI looks forward to an ongoing cooperative relationship with
Australia.” Premier O’Neal stated.
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