Bermuda’s tax information exchange agreement (TIEA) with Canada will come into effect from the start of next month, Premier Paula Cox has announced.The agreement was signed on June 14, 2010, in Bermuda, and on its enactment, will mean that dividends of foreign affiliates resident in Bermuda that are paid to their Canadian parent companies out of the income earned in Bermuda will be exempt from Canadian taxation.“The Canadian delegation attending the Global Forum for Transparency and Exchange of Information for Tax Purposes here in Bermuda has delivered this very welcome news of the Canada-Bermuda TIEA entering into force on July 1,” said Ms Cox.“The industry has been understandably looking forward to this news. Canadian companies are hugely involved in the captive, hedge fund and private equity areas of the international business sector and more recently in the banking arena.“Currently, there are 1,145 entities with Canadian interest, and this number is expected to grow exponentially.”The Bermuda Insurance Development Council (IDC) chairman, Allison Towlson, said: “The IDC is very pleased that the Canadian TIEA will soon be a reality. We congratulate the Bermuda Government for their vision and hard work in seeing this process through. We believe the TIEA will channel more business opportunities with Canadian companies. It will also provide Canadian entities with a wider variety of advanced risk management tools from the Bermuda market.”Bermuda has signed 24 TIEAs to date.