Canada Signs Protocol Amending Tax Agreement With Barbados
Her Excellency Ruth Archibald, Canadian High Commissioner to Barbados and the Eastern Caribbean and George Hutson, Minister of International Business and International Transport, today signed a Protocol Amending the Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital.
“This is another step in Canada’s ongoing efforts to combat tax evasion and ensure greater fairness for hard-working Canadian taxpayers,” Jim Flaherty, Minister of Finance, Government of Canada said; “I would like to thank the Government of Barbados for working with Canada to create greater fairness for the people of both our nations.”
The Protocol updates the original Agreement, signed on January 22, 1980, to conform with current Canadian and international double taxation agreement policies.
Consistent with the Government’s policy announced in Budget 2007, the Protocol includes provisions to ensure that Canada has an effective exchange of tax information with Barbados in accordance with the internationally agreed standard developed by the Organisation for Economic Co-operation and Development. The Protocol will assist Canadian tax authorities in the administration and enforcement of Canada’s tax laws. This supports Canada’s commitment as a G 20 member to promote the effective exchange of tax information and to protect its public finances and financial systems.
The Protocol reflects the Government’s strong resolve in pursuing efforts to improve tax fairness and to prevent international tax evasion.
Canada and Barbados will notify each other once their respective domestic implementation procedures are complete. The Protocol will enter into force on the date of the later of these notifications and its provisions will have effect in accordance with Article 6 of the Protocol.
Over the years, Canada has been working hard to update and establish tax agreements and treaties with various countries. The latest developments are posted regularly on the Department of Finance website at http://www.fin.gc.ca/treaties-conventions/treatystatus_-eng.asp and http://www.fin.gc.ca/treaties-conventions/tieaaerf-eng.asp.