Thursday, 10th February 2011BVI SIGNS 20th TIEA WITH REPUBLIC OF INDIA

Enhanced Relations

10 February 2011- The Government of the British Virgin Islands enhanced its relations with the Government of the Republic of India by signing a Tax Information Exchange Agreement (TIEA) yesterday.

Deputy Premier and Minister of Health and Social Development Honourable Dancia Penn OBE QC signed the agreement in London with the High Commissioner of India to the United Kingdom His Excellency, Nalin Surie. It is the 20th such agreement the BVI has signed. The TIEA is based on a model agreement developed by the Organisation for Economic Cooperation and Development (OECD) which allows both parties to request information that is relevant to a civil or criminal tax investigation.

In a joint declaration signed with the TIEA, the Governments of BVI and the Republic of India state that both countries are active, constructive and cooperative members of the international community with globally integrated and responsible finance centres. The BVI and India 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 Joint Declaration further states:

"This Agreement represents a milestone in relations between the two Governments and both are committed to examine other areas of mutual co-operation and benefit, including a double taxation agreement."

In April 2002, the British Virgin Islands committed to work with the OECD to develop the principles of transparency and exchange of information in tax matters. That same month, the BVI signed a tax information exchange agreement with the United States of America.

Inclusive of Wednesday's agreement, the BVI has signed 20 TIEAs to date with Ireland, the Kingdom of the Netherlands, the Netherland Antilles and Aruba, the United States of America, the United Kingdom, Australia, New Zealand, France and the Nordic Alliance of Sweden, Norway, Finland, Denmark, Iceland, The Faroes and Greenland, China, Portugal and Germany.  Under the guidelines provided by the OECD and the new international tax standard emanating from the G-20 Summit in April 2009, jurisdictions are required to sign at least 12 TIEAs. The BVI was recognised in 2009 as having substantially implemented the OECD standard of transparency and effective exchange of information.