Under the agreement, all of Bermuda’s financial institutions will have to identify all UK residents with interests in Bermuda and automatically report them to the UK Treasury on an annual basis.
The Treasury will receive the information in bulk form and will be able to issue group requests for information in relation to recalcitrant clients (people who refuse consent to allow their information automatically) of Bermudan financial institutions.
The Treasury will also be able to request information from Bermudan financial institutions if it is investigating UK tax payers for tax evasion.
The agreement was signed by UK exchequer secretary David Gauke and Bermudan minister Everard Richards earlier this week. It was, said Richards, in keeping with Bermuda’s international tax strategy.
The aim is to demonstrate Bermuda’s “commitment to tax transparency and automatic exchange of information and ensure Bermuda’s reputation as the premier international financial jurisdiction in which to do businesses”.
Bermuda is one of a number of overseas British territories that agreed last May to share tax details as part of the UK government’s fight against tax evasion. Others included Anguilla, Bermuda, the British Virgin Islands, Montserrat, the Turks and Caicos Islands and the Cayman Islands.
Jersey, Guernsey and the Isle of Man have also signed formal automatice exchange of information agreements with the UK Treasury in the past two months.