Bermuda to France: What’s the problem?

While Paris may be the City of Lights, France wants more sunshine on the financials of companies in Bermuda.

The Bermuda Government spokesperson said: “Bermuda is surprised by reports that the Territory is to be included in France’s list of offshore financial centres with which France has issues, particularly as Bermuda has an existing exchange of information agreement (TIEA) with France.”

Bermuda’s Ministry of Finance has contacted officials within the French government seeking clarification regarding this action and stating Bermuda’s position as we seek to resolve this issue.

 The spokesperson added Bermuda anticipates all of its internal processes for automatic exchange of information instruments such as US and UK FATCA IGA Model 2 and the Multilateral Convention will be completed by the end of September 2013, and “envisages any entry on France’s list will therefore be very short-lived or never happen if in fact that list is to be effective later than 2013”.

 Bermuda has stated it supports the proposed G5 / EU multilateral pilot based on US FATCA and will sign-on when the multilateral exchange of information pilot is ready for adoption.

 The spokesperson said: “More generally, Bermuda is recognised as complying with the highest international standards on tax transparency and compliance.”

"Bermuda recently underwent a combined Phase 1 and Phase 2 OECD assessment which was very positive and determined that the Territory not only has the legislative procedures in place but has an active exchange of information regime in place with its tax treaty partners."