SVG signs another Tax Information Exchange Agreement

St. Vincent and the Grenadines concluded its latest Tax Information Exchange Agreement (TIEA) on January 18, 2010, with the United Kingdom of Great Britain and Northern Ireland.{{more}}

Signing on behalf of St. Vincent and the Grenadines (SVG) was its High Commissioner to the United Kingdom, His Excellency Mr. Cenio E. Lewis, while the Rt. Hon Stephen Timms, MP, Financial Secretary to the UK Treasury signed on behalf of the United Kingdom and Northern Ireland. The signing took place at HM Revenue and Customs Office, London, England. Antigua and Barbuda, St. Kitts and Nevis and St. Lucia, through its respective High Commissioners stationed in London, also signed similar Agreements with the United Kingdom and Northern Ireland on the said date, at this ‘signing ceremony’ held in London.

This brings the total number of TIEAs completed by SVG to date to nine. The eight already established TIEAs are with Aruba, Austria, Belgium, Denmark, Ireland, Liechtenstein, the Netherlands and the Netherlands Antilles.

The pursuit of TIEAs has been undertaken by SVG in order to demonstrate its commitment to implementing the OECD’s internationally agreed tax standards with respect to the exchange of tax information. The country has, therefore, been involved in negotiations with OECD and other countries in order to obtain at least 12 such Agreements by March 2010, in order to be removed from the OECD’s ‘grey list’ of countries which have committed to the internationally agreed tax standard but have not yet substantially implemented its commitment.

SVG expects to meet the OECD stipulated deadline for removal from its grey list based on its efforts made thus far with TIEAs which have already been established and which are presently being pursued. Negotiations are continuing for the establishment of TIEAs with Australia, France, Germany, New Zealand, Sweden, Norway, Finland, Iceland, the Faroes and Greenland. Seven TIEAs in relation to the said countries have already been initialled as accepted by the respective countries and St. Vincent and the Grenadines. Dates for the completion of these TIEAs have not yet been decided. However, all are targeted for completion on or before March 31, 2010.

The execution of this latest UK/SVG tax agreement, like the other agreements already established and being pursued, is of significance to SVG, not only as a means of illustrating the country’s implementation of internationally agreed tax standards but also as a unique opportunity to foster mutual cooperation with respect to tax matters, with the ultimate objective of greater financial accountability and transparency at an international level.

Since September 2009, SVG has been utilizing its Ambassadors and key contacts stationed abroad to sign these Agreements on its behalf so as to curtail the costs of the Minister of Finance’s attendance for such signing.

A TIEA was signed with Belgium in Brussels by OECS Ambassador Shirley Skerritt-Andrew and Ambassador to the United States, La Celia Prince, whose services were also utilized to sign TIEAs with the Netherlands, Aruba and Denmark, on the country’s behalf. SVG’s Honorary Consul to Austria, Dr. Walter Schoen, signed a TIEA with Austria, and former Hon. Consul to Liechtenstein Mr. Bryan Jeeves O.B. E. signed with Liechtenstein on SVG’s behalf. A recent TIEA was also concluded with Ireland on December 15, 2009, via courier service.

SVG anticipates its removal from the OECD grey list in March 2010. Such removal will be welcomed by all players in the country’s local and international financial industry in the best interests of the reputation of the jurisdiction.