Bermuda, Australia in tax talks

Government is negotiating a tax information exchange agreement with Australia, Finance Minister Paula Cox told legislators yesterday.

Meetings were held here this week between Australian and Bermuda officials to hammer out the details of a draft agreement and a Memorandum of Understanding, she said.

“Government's stated position is that it is willing to enter into bilateral tax information agreements on the basis of mutual benefit to the parties to the agreement,” Ms Cox said.

“As Bermuda seeks no direct benefit from an exchange of information regarding its tax system, the Ministry of Finance was mandated to seek an agreement which confers some measurable and reciprocal benefit on Bermuda. Hence these discussions not only explored the terms of a possible exchange of information agreement, but also identified and sought to agree other benefits which may include provisions which facilitate enhanced trade in financial services, and provisions for improved commercial relations between Bermuda and Australia.”

The agreement is yet to be finalised, she added.

Fee hike for pension trust funds

Government has increased the registration fees for pension trust funds by five percent.

The measures were approved without objection from the Opposition United Bermuda Party.

The increase applies to just over 80 pension funds active on the Pension Trust Fund Register and schemes set up under the National Pensions Act are unaffected by the increase.

Finance Minister Paula Cox explained that pension trust funds are administered under the Pension Trust Fund Act and are set up to provide benefits primarily to non-Bermudians, including superannuation allowances on retirement and pensions for widows.