By KRYSTEL ROLLE ~ Guardian Staff Reporter ~ krystel@nasguard.com:
Prime Minister Hubert Ingraham yesterday expressed concern that some of the banks in The Bahamas are able to take large profits out of the country while paying very little taxes.
"I find it very distasteful, and I am very annoyed by it quite frankly, angered would be a better word, that some of the banks in The Bahamas are able to repatriate huge profits from The Bahamas and pay minuscule sums," Ingraham said during debate in the House of Assembly yesterday on a bill to amend the Criminal Justice International Co-operation Act in the House of Assembly on Thursday. The bill, which was passed yesterday, seeks to allow The Bahamas to provide assistance to foreign jurisdictions on fiscal criminal tax matters.
"And if there was a (corporation) tax on banks in The Bahamas, a low tax of ten percent or five percent, then they'd be able to deduct that amount from the tax that they'd pay back in Canada or elsewhere, they'd pay it anyhow and leave the money here," Ingraham said.
He added that the government does not have a problem entering into double taxation agreements.
Those agreements are designed to protect against the risk of an individual or a corporate entity being taxed twice where the same income is taxable in two states.
However, he said the Bahamian tax system is not as broad as countries such as Barbados to take account of various things that are normally taxed in that country.
"Banks in The Bahamas are able to make profits here in this country, [and] send it to their operations in Barbados. Barbados gets its share of taxes, then they pay their home country and we get pittances," he said.
In addition to the Criminal Justice International Co-operation Act, three other bills were passed yesterday.
The House of Assembly also passed a bill to amend the Magistrates Act, which seeks to amend the definition of "circuit justice" in section 2 of the act.
The Merchant Shipping Oil Pollution Amendment Bill was also passed. It seeks to regularize the shipping industry.
Finally, the Bill to Amend the Registrar General Act, which seeks to increase the number of assistant registrar generals under the act, was passed. It also seeks to repeal a section of the act to remove the provision for the registrar general to be a magistrate, ex officio.
October 16, 2009
thenassauguardian
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