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ARTICLE · 18 DECEMBER 2018

Economic Substance Legislation Tabled In Bermuda

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Continuing its ongoing commitment to the development and maintenance of the very highest standards of economic and financial propriety.

BermudaFinance and Banking
Kevin Taylor
Kevin Taylor
Natalie Neto
Natalie Neto
Daniel Wood
Daniel Wood
Andy Randall
Andy Randall
Jack Boldarin
Jack Boldarin
John Rogers
John Rogers
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Continuing its ongoing commitment to the development and maintenance of the very highest standards of economic and financial propriety, the Bermuda Government has tabled legislation that embraces a global initiative to combat base erosion and profit shifting (BEPS).

The legislation, which was tabled in the House of Assembly on 7 December 2018 is entitled 'The Economic Substance Act 2018'. The Act provides a statutory framework for determining the extent to which it will be necessary for a relevant company conducting relevant activities to maintain economic substance in Bermuda.

We do not consider that structures seeking to exploit BEPS are at all prevalent in Bermuda, but Bermuda is committed as a jurisdiction to assisting the international community in the preservation of standards of fiscal propriety, wherever possible.

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