J. Clark Armitage spoke with Worldwide Tax Daily on how Bermuda has recently agreed to exchange country-by-country (CbC) reports automatically. For the complete article, please visit Worldwide Tax Daily website (subscription required).
Excerpt taken from the article "Bermuda Agrees to Automatic Exchange of Country-by-Country Reports" by Stephanie Johnston for Worldwide Tax Daily.
Bermuda's announcement may not be that significant from a corporate perspective because there aren't a lot of Bermuda-headquartered companies that would pass the €750 million threshold, according to J. Clark Armitage of Caplin & Drysdale Chtd. Therefore, the world shouldn't expect to see a lot of extra information resulting from Bermuda's adopting automatic exchange of CbC reports, he said.
However, now that Bermuda has signed the MCAA, the pressure is on other low-tax jurisdictions to do the same, Armitage said. "In that sense, it's important that the OECD is trying to make this a global responsibility," he added.
Armitage also pointed out that Bermuda is a tax efficiency jurisdiction, not a secrecy one. "Signing on to the CbC requirement is consistent with what Bermuda has tried to do" in creating a transparent environment, he said.