Bermuda Signs Tax Deal w/ Mexico

October 19, 2009

Bermuda’s Minister of Finance Paula A. Cox announced that it has signed a bilateral agreement with Mexico that provides for a full exchange of information on criminal and civil tax matters between Bermuda and Mexico.

The signing of the tax information exchange agreement (TIEA) and Memorandum of Understanding (MOU) took place in Mexico City at the Nacional Financiera. Agustin Carstens, Minister of Finance and Public Credit, signed on behalf of Mexico and Minister of Finance and Cox signed on behalf of Bermuda.

The agreement “enables Bermuda to benefit from any current laws Mexico has in place, or which Mexico may initiate in the future that enhances trade with its TIEA partners,” said the bulletin.

Cox observed that no Government can preempt its Parliament and as such she was confident, that as in the case of France with its recent legislation targeting uncooperative jurisdictions, that Bermuda was now well-placed to benefit from existing Mexican law and any possible future laws pertaining to Mexico’s TIEA partners.

Bradley Kading, President and Executive Director of the Association of Business Insurers and Reinsurers (ABIR), commented: “Mexico is exposed to earthquake and hurricane loss potential, very similar to the United States. Bermuda’s reinsurers are the leading providers of natural disaster catastrophe reinsurance and as a result we are logical providers of coverage to Mexico domiciled insurers. We provide 40 percent of the hurricane and earthquake reinsurance to North America. This tax agreement should contribute to additional cross border trade of benefit to Mexican business and consumers in need of financially strong risk takers.”

David Ezekiel, Chairman of the Association of Bermuda International Companies (ABIC) added: “Coming just after the conclusion of negotiations with Spain [See IJ web site – https://www.insurancejournal.com/news/international/2009/10/01/104205.htm] and the signing of the TIEA with France, the signing with Mexico is further good news for the Bermuda international business sector as all three of these countries have a substantial involvement in our market. The signing of the TIEA will enhance those current relationships and should make Bermuda even more attractive as a domicile for prospective clients from Mexico.”

Source: Bermuda Ministry of Finance – www.gov.bm

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