Bermuda has concluded negotiations of a tax information exchange agreement (TIEA) with Belgium, Finance Minister Paula Cox announced yesterday.

The deal includes a commitment by Belgium to conclude a series of "mini double taxation agreements with Bermuda", a Finance Ministry release stated. Belgium has also stated within the agreement itself that Bermuda does not engage in harmful tax practices, nor is it considered by Belgium to be a tax haven.

The negotiations took place last Wednesday at Belgium's Ministry of Finance, in Brussels.

The negotiating team included Assistant Financial Secretary Wayne Brown and Treaty Adviser Laura Semos. The two officials also represented Bermuda at the meeting of the OECD Global Forum Steering Group — of which Bermuda is a vice-chair — in Paris last Friday.

"Bermuda's proposed treaty with Belgium is one more example of Bermuda moving swiftly to expand upon our role in the global financial network, to strengthen and deepen our relationships with other financial centres, and to exceed the expectations of international bodies such as the Organisation for Economic Cooperation and Development (OECD)," Minister Cox said.

"In each respect, both in exceeding international standards of information exchange and transparency by concluding tax information exchange agreements such as with Belgium, and by taking a leading role in international bodies that set global tax policy, we are adding to the attraction of Bermuda as a leading domicile for international companies and affirming our long-standing position as a leader in international business." Bermuda was promoted to the OECD's "white list" of jurisdictions seen to be complying with international tax transparency standards in June, when it had signed its 12th TIEA to meet the organisation's minimum requirement.

Since then Bermuda has raised its total to 18 signed TIEAs and it has also completed negotiations with Canada, Japan and Spain, among others.

Yesterday, Ms Cox, who was in London attending the Overseas Territories Consultative Council meetings, told this newspaper that the Steering Group session had gone well.

"It was clearly a productive and useful session," Ms Cox said. "Mr. Brown and Ms Semos represented Bermuda very well. They liaised closely with the Financial Secretary (Donald Scott) and me, so that we felt that we were right there with them in the meetings." Ms Semos said: "Bermuda's presence as a vice-chair continues to give us an opportunity to shape the agenda of the Global Forum as it advances international cooperation in tax information exchange and transparency." The meeting took place at OECD Conference Centre in the French capital.

David Ezekiel, Chairman of the Association of Bermuda International Companies (ABIC) praised Bermuda's achievement: "The conclusion of negotiations of a TIEA with Belgium is another significant step forward for our regulatory regime in Bermuda, and is especially meaningful given the already substantial involvement of Belgian companies in the Bermuda financial sector. "The success of our Ministry of Finance in concluding another important TIEA is heartening and bodes well for the future of this important sector of the Bermuda business landscape." Bradley Kading, president and executive director of the Association of Business Insurers and Reinsurers (ABIR), said: "The Bermuda/Belgian TIEA formalises a practice of transparency and cooperation that Bermuda seeks with its major trading partners. "ABIR members provide an estimated 30 percent of the broker placed coverage for catastrophic windstorm and flood reinsurance protection purchased by Belgian insurers. In addition our members' European subsidiaries write approximately eight percent of the Belgian broker placed reinsurance business. Four ABIR members have licensed subsidiaries in the country." Minister Cox intends to sign with Belgium immediately following the conclusion of Belgium's internal approval process. The Ministry's statement added: "Bermuda's TIEA with Belgium includes all standard means to ensure due process is followed in tax information requests to Bermuda, including, for example, provisions to protect the confidentiality of information provided, as well as adhering to public policy."