Wendy C. Warren
CEO & Executive Director
Bahamas Financial Services Board
The Bahamas has secured further approval by the US Treasury of its Know-Your-Customer rules and its qualified jurisdiction status under the Internal Review Services program, through the signing of an agreement with the United States for the provision of information with respect to taxes and for other matters between the two Governments.
Under the agreement, The Bahamas has made a commitment to provide as of 2005 (i.e, for taxable years which begin in January 1, 2004) information that may be available in The Bahamas that is relevant to a particular case, where the United States Government has exhausted all measures within the United States, and the Ministry of Finance in The Bahamas is of the opinion that sufficient evidence exists to support criminal tax evasion of United States federal tax.
It is noteworthy that any information obtained through this agreement cannot be shared with other countries. Further, in addition to the burden to prove wrongdoing, strong anti-fishing provisions are an integral part of the agreement. Similar arrangements are slated to begin in 2007 with respect to civil tax offense of United States Federal tax laws. However, The Bahamas has continued to seek a level playing field by referring to the terms of similar agreements that the United States may negotiate with other countries over the upcoming years.
The United States has indicated that an acceptable level of exchange of criminal and civil information is a prescribed condition to renewing Qualified Jurisdiction status for all countries.
The Minister of Finance of The Bahamas said the agreement with the U.S. reinforces government policy to see The Bahamas continue as a viable and recognised international financial center. Further, it is in this regard the Government of The Bahamas continues to call for a commitment by the OECD to provide a level playing field in its Harmful Tax Initiative. The principle of the level playing field has been the position of The Bahamas since 1999.
The call for recognition of The Bahamas Government’s long standing policy to continue to raise revenue through indirect taxes rather than the imposition of income, capital gains or inheritance taxes, has received support from the United States, and has subsequently seen a clarification in the OECD’s Harmful Tax Initiative.
Contact for Additional Information:
Wendy C. Warren
CEO & Executive Director
Bahamas Financial Services Board
Tel: (242) 326-7001