The British Virgin Islands executed a much anticipated Tax Information Exchange Agreement (TIEA) with Canada on May 21, 2013. The agreement is the 24th such agreement entered into by the British Virgin Islands Government. Photo: Reuben J.A. Stoby/VINO

The TIEA establishes a formal regime for the exchange of information between Canada and the British Virgin Islands relating to taxes and tax matters. The agreement will take effect once both Canada and the British Virgin Islands have notified the other of completion of the necessary internal procedures required under their respective laws.

It is anticipated that once the TIEA becomes effective, the British Virgin Islands will become a "designated treaty country" for the purposes of Canada's Income Tax Regulations which should prove beneficial to persons who use or who are considering using British Virgin Islands companies in their corporate structures.

Other jurisdictions which have entered into a TIEA with the British Virgin Islands include China, Germany and France. (mondaq.com)