Bermuda has fully addressed two recommendations made two years ago by the Organisation for Economic Cooperation and Development’s body on transparency and exchange of information for tax purposes, but it has more work to do in two other areas.That is the conclusion of a report published today, which finds that Bermuda has “progressed significantly” in strengthening its legal and regulatory framework from an international tax transparency perspective.The phase one Supplementary Report and Peer Review issued by the OECD’s Global Forum says the improvements in the Island’s legal and regulatory framework demonstrate Bermuda’s “ongoing commitment to meet the international standards on tax transparency and information exchange”.Bermuda’s phase two peer review will begin in the second half of this year.The Global Forum believes that Bermuda still has room for improvement in the areas of availability of ownership and identity information, and accounting information.In September 2010, Bermuda was one of just two countries of the first eight to be assessed by the OECD adjudged to have “all elements in place” in its legal and regulatory infrastructure to achieve international tax transparency standards, but there were recommendations for improvements in four areas.Today’s follow-up report finds that Bermuda has taken sufficient steps to improve access to information and effective exchange of information mechanisms for the Global Forum to consider these aspects of its framework to be in place with no recommendations.“Bermuda has now passed legislation to ensure that search and seizure powers previously only available for requests made under its EOI [exchange of information] agreement with the US, are now available for requests made by all of its EOI partners. This change addresses the recommendation made on element B1 in the 2010 Report, which is now deleted,” the report states.The report also notes that in the case of trusts, foreign companies and foreign partnerships carrying on business in Bermuda, there “are currently inconsistent obligations on relevant entities and arrangements to maintain reliable accounting records including underlying documentation, for a minimum five-year period”.It recommends the introduction of consistent, binding requirements on all relevant entities and arrangements to maintain reliable accounting records, including underlying documentation, for a minimum of five years.Last year, Bermuda introduced the Specified Business Legislation Amendment Act 2011 (SBLA Act) which made a broad range of changes to Bermuda’s legal framework aimed at addressing the OECD recommendations.The report notes that the SBLA Act, which is now in force, introduced enforcement measures for some instances where previously there had been no sanctions for non-compliance with ownership and identity information obligations.“However, it is not clear that any enforcement measure has been introduced for partnerships and companies in all instances, so the recommendation concerning enforcement measures remains, but its scope has been narrowed,” the report states.The report continues: “Since 2010 Bermuda has taken steps to fully address two of the recommendations made in the 2010 Report, and has partially addressed two further recommendations.“Combined with the signing of a further seven EOI agreements and the conclusion of a number of competent authority agreements, this demonstrates Bermuda’s ongoing commitment to meet the international standards on tax transparency and information exchange.“Bermuda is encouraged to continue to review and update its legal and regulatory framework in line with the remaining recommendations made in the 2010 Report, particularly as concerns the availability of ownership and identity information (element A1) and accounting information (element A2).”The 30 tax information exchange agreements Bermuda has agreed with other countries are listed at the end of the report.A copy of the report is attached to the online version of this story.Useful website: http://www.eoi-tax.org/jurisdictions/BM