Bermuda and Germany have begun talks on a tax information exchange agreement.

A Government statement sent out last night said officials from the Finance Ministry and the Attorney General's Chambers had concluded the first round of negotiations on the agreement with counterparts from the German Government.

The purpose of Tax Information Exchange Agreements (TIEAs) is to allow for international cooperation in tax matters. Bermuda has already signed TIEAs with the governments of the US, Australia and the UK.

Finance Minister Paula Cox said she was pleased with the progress made with the German officials and added: "Although Bermuda does not have a need for such information, in the spirit of transparency and international cooperation, Bermuda has taken the position that we are willing to assist other countries in tax investigations involving civil as well as criminal matters."

The press release did not say where or when the talks took place.

The Finance Ministry team was helped in the negotiations by tax experts from the private sector, who are members of the International Business Forum.

Earlier this year, Germany launched a probe into hundreds of their own citizens who held bank accounts in the low-tax jurisdiction of Liechtenstein. And the Germans also appealed for more cooperation from Switzerland in catching tax dodgers.

"Government's stated position is that it is willing to enter into bilateral tax information exchange agreements on the basis of mutual benefit to the parties to the agreement," Ms Cox said.

"As Bermuda seeks no direct benefit from an exchange of information regarding its tax system, the Ministry of Finance has been mandated to seek agreements which confer some measurable and reciprocal benefits on Bermuda.

"Hence these discussions not only explore the terms of a possible exchange of information agreement, but also identified and sought to agree other benefits which may include provisions which facilitate enhanced trade in financial services, and provisions for improved commercial relations between Bermuda and other countries.

"During these negotiations with Germany, Government representatives did discuss a number of additional benefits covering tax related matters, and non tax matters. These meetings provide an important opportunity to affirm Bermuda's status as a well recognised financial centre and to seek recognition of our financial services."

She added: "Bermuda has taken very seriously our obligations as a cooperative jurisdiction."