Thursday, May 27, 2010

Offshore Agreement Signed Between BVI and Australia

By the announcement of the Australian government, the Additional Benefits Agreements between Australia, the British Virgin Islands, the Isle of Man and Jersey have come into force.

These agreements help to prevent double taxation by allocation of the taxing rights over certain income of pensioners, students and government employees - residents of Australia, the British Virgin islands, the Isle of Man and Jersey. This kind of agreement also provides for a mechanism to deal with disputes arising from transfer pricing adjustments.

The Additional Benefits Agreement with the British Virgin Islands entered into force on April 12, 2010. As well as the other two jurisdictions, BVI have also signed TIEA with Australia.

By words of Assistant Treasurer, Senator Nick Sherry, these arrangements are part of the new taxation and financial relationship between Australia and the jurisdictions.

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