ST GEORGE’S, Grenada (CMC) — Grenada and Canada have signed a Tax Information Exchange Agreement, which, according to Prime Minister Dr Keith Mitchell, is not based purely on revenue, but also on securing the country.

The agreement was signed with Canada’s High Commissioner to Barbados and the Eastern Caribbean, Marie Legault on Friday.

According to Mitchell who is also the Finance Minister, there is need for even greater transparency and accountability in governance, with the world becoming a global village, hence Grenada’s decision to pass the Fiscal Responsibility Act.

“In this period where we are dealing with terrorism, all sorts of madness taking place in the international community, we are to share information on taxes because they might be, in some cases, links that we might be able to detect so this is not a simple decision of just revenue,” the prime minister said.

“It is also about securing our borders and the world environment in which we live. So I am particularly heartened by the step we have taken. We have done it with other countries around the globe”.

The Tax Information Exchange Agreement is designed to promote international co-operation in tax matters through exchange of information.

It will also help both countries to look further at their vision for security and stability in the region.

Legault says the signing shows that Grenada and Canada are committed to transparency.

“The signature is something that I am very proud that we are doing because it will be something that will increase our relationship on the economic side,” said Legault.

“This is an important step for Grenada and Canada and I am very happy that we are able to do this, to see how we can demonstrate that Canada and Grenada are committed to transparency”.

According to Canadian MP, Celina Ceasar Chavannes, who was born in Grenada — the signing will ensure greater accountability.