Interesting observations from both Messrs Moree and Delaney on the implementation of FATCA in The Bahamas.
In the interest of clarity and completeness it is worth mentioning that a number of UK overseas territories have been engaged in exchanging tax information automatically with EU tax authorities as part of their EU Savings directive obligations for a number of years. One such jurisdiction utilising a government agency as the relevant conduit for such automatic exchange of tax information are the Cayman Islands which, like The Bahamas, does not have an income tax regime.
Consequently, whilst the rationale for not entering into an IGA with the US to faciitate FATCA implementation, is being based on the absence of an income tax regime that has a supporting intitutional framework; precedent already exists to show that institutional frameworks have been operating for some time in jurisdictions that also do not have an income tax regime.
The Cayman Islands Tax Authority acts as the governmental conduit for automatic exchange of tax information pursuant to that jurisdiction's obligations relative to the EU Savings Directive. It also acts as the competent authority for exchange of tax information upon request, under its other various obligations and commitments to international tax cooperation.
Rowena Bethel, former Legal Advisor and tax treaty negotiator for The Bahamas Ministry of Finance.
While I have no views on the report cards of the Cabinet Ministers, the record will show that ALL negotiations for Tax Information Exchange Agreements to satisfy the OECD were done and led by the Ministry of Finance, so it is not accurate to state that the DPM negotiated these Agreements. Tax treaties are typically negotiated at a technical level between tax treaty officials from Ministries of Finance or Treasury Departments. The Minister of Foreign Affairs is obliged to sign treaties on behalf of The Bahamas unless the PM authorises another Minister to do so, where the DPM (as Minister of Foreign Affairs) was unable to do so. In this regard, Minister Zhivargo Laing signed the TIEAs with the seven Nordic countries, the UK and India. So perhaps the credit for this accomplishment should be in the PM's or Minister Laing's column.
Rowena Bethel, former Legal Advisor and former lead negotiator for tax information exchange agreements for the Ministry of Finance, Bahamas Government.
rowenab says...
Interesting observations from both Messrs Moree and Delaney on the implementation of FATCA in The Bahamas.
In the interest of clarity and completeness it is worth mentioning that a number of UK overseas territories have been engaged in exchanging tax information automatically with EU tax authorities as part of their EU Savings directive obligations for a number of years. One such jurisdiction utilising a government agency as the relevant conduit for such automatic exchange of tax information are the Cayman Islands which, like The Bahamas, does not have an income tax regime.
Consequently, whilst the rationale for not entering into an IGA with the US to faciitate FATCA implementation, is being based on the absence of an income tax regime that has a supporting intitutional framework; precedent already exists to show that institutional frameworks have been operating for some time in jurisdictions that also do not have an income tax regime.
The Cayman Islands Tax Authority acts as the governmental conduit for automatic exchange of tax information pursuant to that jurisdiction's obligations relative to the EU Savings Directive. It also acts as the competent authority for exchange of tax information upon request, under its other various obligations and commitments to international tax cooperation.
Rowena Bethel, former Legal Advisor and tax treaty negotiator for The Bahamas Ministry of Finance.
On Ex-AG: FATCA IGA 'not appropriate' for the Bahamas
Posted 3 August 2012, 12:20 p.m. Suggest removal
rowenab says...
While I have no views on the report cards of the Cabinet Ministers, the record will show that ALL negotiations for Tax Information Exchange Agreements to satisfy the OECD were done and led by the Ministry of Finance, so it is not accurate to state that the DPM negotiated these Agreements. Tax treaties are typically negotiated at a technical level between tax treaty officials from Ministries of Finance or Treasury Departments. The Minister of Foreign Affairs is obliged to sign treaties on behalf of The Bahamas unless the PM authorises another Minister to do so, where the DPM (as Minister of Foreign Affairs) was unable to do so. In this regard, Minister Zhivargo Laing signed the TIEAs with the seven Nordic countries, the UK and India. So perhaps the credit for this accomplishment should be in the PM's or Minister Laing's column.
Rowena Bethel, former Legal Advisor and former lead negotiator for tax information exchange agreements for the Ministry of Finance, Bahamas Government.
On The best of the FNM cabinet
Posted 2 April 2012, 12:55 p.m. Suggest removal