However, over the past three years, following the onset of the global economic crisis, many international financial centres in the Caribbean and elsewhere have rushed to meet OECD standards for information exchange. There is no doubt that the DBA has played an important role in the development of cross-border trade and investment over the past century. However, it is also clear that TIEA has recently gained in importance due to the emphasis of a number of international organizations, such as the OECD and the G20, on preventing tax evasion through information exchange. Nevertheless, it is generally accepted that TIEA, in its current form, cannot replace the DBA in terms of the important role of facilitating cross-border trade and investment. The main reasons for this are discussed below. In order for countries such as Bermuda and the Cayman Islands to meet OECD standards for information exchange, they therefore have little choice but to close TIEA. Unlike DenBA, TIEA`s sole objective is to “promote international tax cooperation through the exchange of information.” The Barbados CRS will come into force on 1 January 2017. However, due to a delay in completing logistics to successfully meet their reporting obligations, financial institutions had to provide the relevant information for 2018 by 31 July 2019. As of December 31, 2017, Barbados financial institutions will need procedures in place to identify the accounts of residents of a country other than Barbados and provide the necessary information to the Barbados Revenue Authority. Barbados has traditionally been in favour of the exchange of information on tax issues relating to the DBA, many of which were in place and in force for decades before the transition from the OECD to the IEA. In this regard, Barbados is an international leader in monitoring the exchange of tax information. In accordance with international standards and best practices, Barbados was prepared to sign TIEAs with other nations with which a TIEA is the preferred form of the agreement.
The amendment broadens the scope of tax information exchange provisions in Barbados` existing double taxation conventions to comply with the new OECD standard, in accordance with Article 26 of the OECD model.