Reagan Administration Supports Bill Exempting Bermuda from Exchange of Information Agreeements

In an interesting albeit unexplianable twist of position, the Reagan Administration has supported legislative bills introduced in both houses of Congress (S. 1718 and H.R. 3242) which would change the classification of Bermuda from a Caribbean country to the North American area for purposes of the deductibility of business expenses of attending conventions.  The proposed change would mean that U.S. tax residents could more easily deduct the expenses for attending business meetings in Bermuda as they do in Canada and Mexico.  Surprisingly, the bill, which the Reagan Administration is supporting, would not require Bermuda to conclude an exchange of information provision.