The Bahamas and Canada signed a Tax Information Exchange Agreement on Thursday, July 17, 2010. Pictured from left are His Excellency Stephen Hallihan, High Commissioner for Canada to The Bahamas; and Deputy Prime Minister and Minister of Foreign Affairs the Hon Brent Symonette. Looking on is Terry Archer, Senior Protocol Officer, Ministry of Foreign Affairs. (BIS Photo/Kris Ingraham).

NASSAU, The Bahamas - The Commonwealth of the Bahamas and Canada signed a Tax Information Exchange Agreement, adding to an already established cooperation, said Deputy Prime Minister and Minister of Foreign Affairs the Hon Brent Symonette.  

Signatories to the TIEA were Mr Symonette and His Excellency Stephen Hallihan, High Commissioner for Canada to The Bahamas, in a ceremony on Thursday, June 17, 2010 at the House of Assembly Majority Room.  

It was the 22nd signed by The Bahamas; 16 with Organisation for Economic Cooperation and Development countries and nine with members of the G-20 countries.  

“The Government of The Bahamas is satisfied that its expanding network for tax information exchange proves The Bahamas’ ability to benefit from the changing global regulatory environment and to enjoy continued growth in its international business industry,” Mr. Symonette said.  

He said that the government welcomes the conclusion of TIEA agreement with Canada, a fellow Commonwealth country and member of the OECD Global Forum. He thanked the Canadian negotiators for completing the negotiations in a collaborative and cooperative manner.  

The Bahamas, he said, takes particular note of its longstanding economic links Canada stemming back over a century, which has provided mutual benefits for both countries, particularly in financial services and the hospitality sectors.  

“The Bahamas has also enjoyed a longstanding relationship with Canada in the area of judicial cooperation in respect of cross-border criminal activity, under our Mutual Legal Assistance Treaty, which has been in place since the late 1990s.  

“The TIEA between our two countries provides an important complementary addition to an already established, robust base of cooperation,” he said.  

Once the agreement enters into force, it will extend exempt surplus treatment to dividends paid to a Canadian parent corporation by its foreign affiliates resident and carrying on business in The Bahamas, allowing such dividends to be exempted from tax in Canada.  

“The Bahamas looks forward to the continued expansion of its economic relationship with Canada, as nations committed to the effective implementation of accepted international standards for financial regulation and cross-border cooperation; and from this new base forge even stronger links within the scope of the new global financial norms,” Mr. Symonette said.  

The Bahamas and Canada signed a Tax Information Exchange Agreement on Thursday, July 17, 2010. Pictured from left are His Excellency Stephen Hallihan, High Commissioner for Canada to The Bahamas; and Deputy Prime Minister and Minister of Foreign Affairs the Hon Brent Symonette.(BIS Photo/Kris Ingraham)

High Commissioner Hallihan said that these agreements are an important part of a commitment that has been made to many countries around the world, to bring about transparency and effectiveness to international financial systems and to tax regimes which cross borders.  

“In that regard, Canada is very pleased to be signing this exchange agreement with The Government of The Bahamas. It will, quite simply, make our taxation regimes more transparent, more effective and it will allow both countries to actually more effectively implement the tax systems that we have in place,” he said.  

“It also sends a very a powerful signal to other communities that responsible governments such as the one here and in our Canada, insist on due diligence being undertaken when it comes to issues of taxation and financial regulations.”  

The High Commissioner said that it is also just another sign of how strong the relationship is between Canada and The Bahamas, regarded as one of its strongest partners in the regions.

The Bahamas has signed Tax Information Exchange Agreements with the United States of America, Principality of Monaco, Republic of San Marino, United Kingdom, New Zealand, and People’s Republic of China, Argentina, the Netherlands, Belgium, France, Mexico, Denmark, The Faroes, Finland, Greenland, Iceland, Norway, Sweden, Spain, Australia, and Germany.

High Commissioner for Canada to The Bahamas His Excellency Stephen Hallihan made an official visit to The Bahamas June 16 – 18. While here he called on Governor General Sir Arthur Foulkes, Deputy Prime Minister and Minister of Foreign Affairs Brent Symonette and other Government Officials. Sir Arthur is pictured greeting Mr. Hallihan on Thursday at Government House. (BIS Photo: Derek Smith)