International Cooperation (Tax Information Exchange Agreements) Act 2005

14. Bermuda has legal mechanisms in place to enforce the minimum standard: there are notification mechanisms applicable to the parent enterprise superior and the parent company of Bermuda.12 There are also sanctions with respect to the reporting and notification obligation of the CbC: (i) the penalty for non-compliance with the reporting requirements of the CbC, 13 (ii) the penalty of daily delay14 and (iii) penalties for imprecise information15. Enterprises of a multinational group established in Bermuda are required to keep records of the financial situation and information relating to the activity or activities of the enterprise and to provide all information relevant to its tax position. In cases of non-compliance, penalties or custodial sentences may be imposed.16 ← 18. Bermuda also indicated, with regard to the international transmission method for the exchange of CbC reports, that Deloitte/Vizor was responsible for setting up the Bermuda Notification Portal, which will come into contact with the OECD Common Transmission System (CTS), and that the portal was on track to enter into operation for MNEs well in advance of the date of the 2017 report, to communicate its CbC information to the competent authority of Bermuda. Bermuda confirms that it will use the CTS for the AIA for the exchange of CRS and CbC reports (Bermuda has already signed the Bermuda User Agreement for the use of the CTS). ← 4. Bermuda stated that this is a voluntary and non-reciprocal jurisdiction with respect to CbC reporting obligations, as it currently does not need national fees for this information and devotes significant resources to meeting the CbC reporting standard in 2017. . . .

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