By Scott Armstrong ~ Guardian Business Editor ~ scott@nasguard.com:
The domestic banking sector of The Bahamas is set to be hit by increased taxes next year, Prime Minister Hubert Ingraham has vowed.
Speaking at a press conference at Nassau' airport the Prime Minister said: "The banking sector in The Bahamas is under-taxed, we've made that point before. We began last year increasing the licensing fees for banks in The Bahamas, that is inadequate.
"The banking sector should pay more and in due course they will be required to pay more."
One leading light in the financial world to agreed that the banking sector should be taxed harder.
President/chief executive of British American Financial Chester Cooper said: "Many offshore centers like the Bahamas appear to be increasing indirect taxes with a view to avoiding the implementation of more direct means of taxation such as income taxes or Value Added Taxes (VAT).
"Quite frankly, in time we will find that we have delayed the inevitable. Direct taxation although not without its challenges will be more efficient in terms of collections and otherwise, but is more progressive and equitable as well.
"It has long been the view that banks in the Bahamas are under-taxed and the formula quite rightly needs to be re-assessed. Insurers for example, pay a percentage of top line Gross premiums by way of premium taxes. This amount can work out to be inequitable and substantial, as there is no regard for whether the company makes a profit or not."
December 15, 2009
thenassauguardian
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Showing posts with label Prime Minister Hubert Ingraham. Show all posts
Showing posts with label Prime Minister Hubert Ingraham. Show all posts
Tuesday, December 15, 2009
Friday, October 16, 2009
Bahamas Prime Minister Hubert Ingraham: Minuscule tax benefit from huge bank profits
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
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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