By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:


THE Bahamas became the first country to sign a tax information exchange agreement with the People's Republic of China yesterday, moving a step closer to meeting its commitment to be in compliance with new international standards of transparency and information exchange in tax matters.

The signing was the sixth tax information exchange agreement (TIEA) concluded by the government of the Bahamas and the third with a member of the G-20 group of nations.

It took place at the Ministry of Foreign Affairs, Goodman's Bay. Deputy Prime Minister and Minister of Foreign Affairs Brent Symonette signed on behalf of the government of The Bahamas, and the Chinese Ambassador to The Bahamas, Dingxian Hu, signed for the People's Republic of China (PRC).

The Ambassador said the signing was "requested by the Bahamian government" and he said he "hopes the signing will help the Bahamian government to meet its commitments to evolving international standards of transparency and information exchanges."

The Ambassador added: "This is a wonderful day in Bahamas-China relations. I believe that with the signing of the TIEA between China and The Bahamas the friendly bilateral cooperation in the area of trade, economy and investment will be further enhanced and deepened."

Admitting that there are few Chinese people currently bringing their money to the Bahamas, he said he hopes and expects that within the next "ten to twenty years more and more companies and people will come to invest here."

He said that the signing represents yet another step forward in China-Bahamas relations in a year which has already seen eight "important agreements" signed, including the agreement on the Promotion and Protection of Investments by Bahamians and Chinese in each other's countries, forged during the state visit of Chairman Wu Bangguo of the Standing Committee of the National People's Congress of the PRC to The Bahamas in September.

The Ambassador said China "gets a lot" from its relations with this country, including our government's support for its One China policy versus Taiwanese independence, and expects many benefits "in developing trade and economic cooperation in the Bahamas."

Mr Symonette reiterated that the government anticipates to have signed the 12 TIEAs demanded by the G-20 and Organisation for Economic Cooperation and Development in order to be removed from that organisation's "grey list" by March 2010.

The Government has now concluded TIEAS with the US, Monaco, San Marino, UK, New Zealand and China.

The signing of TIEAs is intended to move us to the safer "white list" of countries deemed fully compliant with evolved standards of transparency and information exchange in tax matters, which have become a major priority for governments worldwide left cash-strapped since the global financial crisis took hold.

December 02, 2009

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