Officials from the Finance Ministry will hold talks with business leaders to address OECD recommendations to improve Bermuda's tax transparency and exchange of information framework.

The Organisation for Economic Co-operation and Development's Peer Review Group found that the Island had all required elements in place in its legal and regulatory infrastructure for proper exchange of information.

But, as reported exclusively in The Royal Gazette last Friday, the report also made also made several recommendations to ensure the international standard of exchange of information could be implemented effectively.

These related to provisions to ensure access to information on ownership, including nominees and trusts, and also domestic legislation that could impede the exchange of information standard the OECD wants to see.

In a statement released on Friday, Finance Minister Paula Cox said: "Looking forward, the Ministry of Finance is reviewing the recommendations put forth by the Peer Review Group, and following consultation with industry stakeholders, responding appropriately."

Bermuda was in the first wave of eight jurisdictions to be assessed by the Peer Review Group and was one of only two adjudged to have all elements in place.

This clears the Island to go forward to the second phase of the review, which will examine the effectiveness in practice of the exchange of information system. Phase two must be completed by 2012.

Offshore rival the Cayman Islands fell short in its phase one review, specifically on its legal framework to meet the international standard for accounting information.

The reports were released at the OECD Global Forum's 2010 meeting in Singapore last week, where the Bermuda delegation also concluded negotiations on its latest tax information exchange agreement (TIEA) with Greece.

Bermuda will host the next Global Forum meeting in May 2011, when a further 54 peer review reports will be submitted, including the majority of OECD and G20 countries, many of whom are undergoing combined phase one and two reviews.

In Friday's statement Minister Cox said Bermuda had "much to be proud of".

"To have been included in the first wave of the peer review process, immediately following the successful completion of Bermuda's Annual Assessment was in itself a heady proposition, but for Bermuda to be one of two countries recognised as having all elements met, with some recommendations, at this week's Global Forum in Singapore reflects Bermuda's long-standing commitment to not only meeting but exceeding international standards," Ms Cox said.

In Singapore, Jeffrey Owens, head of the OECD's Centre for Tax Policy and Administration, urged developing countries to bolster their frameworks to combat tax evasion. And he offered technical help from the OECD to achieve this.

Capital flight from emerging economies, often to low-tax jurisdictions, is widely seen as a significant barrier to development.

"You need to have agreements with countries that are undermining your tax base," Mr. Owens told reporters. "These could either be double-taxation treaties or tax information exchange. We will work with developing countries to enable them to put in those agreements."

The full Peer Review Group report on Bermuda is available online at http://www.oecd.org/dataoecd/1/[[1/4]]6103056.pdf