Bermuda Tax Haven
The essential point is that Bermuda’s tax regime remains
one of the world’s most attractive. There are no withholding,
capital gains, transfer, wealth, gift or income taxes for non-resident
entities.
The meatiest issue facing the PLP is Bermuda’s independence.
In much the same way as Britain’s Labour Party is said
to be pro-European, the PLP is thought to be in favour of severing
its ties with the UK.
Marchant says: “It is inevitable, in my opinion, that Bermuda
will go independent and I expect an attempt in this direction to
be made by the PLP government during its second-term in office.
The PLP has always stood for independence and it is inconceivable
that the party will not follow through with something that is so
dear to the hearts of their supporters.”
Bermuda Tax Haven & The PLP
The PLP looks as thought it has gained an unassailable position
in Bermudan politics, but the ruling party will have to be extremely
careful before and after it seeks to lead a country to independence.
Everyone on the islands has an interest in the finance sector’s
success. In 1999 Bermuda had a gross domestic product of £2bn
of that 60 per cent came from finance while revenues from tourism
continued to dive. ©
The ruling party will require a steady
hand if it is to maintain Bermuda’s status in the offshore
world. Ever since the 1950s, when the basic framework for Bermuda’s
current regulation was first introduced, the island’s reputation
has grown steadily. This almost-unparalleled reputation has grown
on the back of stringent monitoring of who gets to do business here.
Bermuda Tax Haven - Bermuda International Bussiness Association
Bermuda International Business Association chief executive Pat Phillipp-Bassett
says: “Our regulation is light but very, very effective. We
really do screen the people who we do business with. We really know
our customers extremely well, so we don’t necessarily need to
be very heavy-handed in terms of regulation.” Bermuda’s
reputation was exemplified this summer when scores of havens were
left nursing their wounds following the OECD’s attack on harmful
tax practices. Bermuda escaped the purge almost completely unscathed.
Similarly, a KPMG report that looked at tax havens also had positive
things to say about Bermuda.
Bermuda Tax Haven And The KPMG
“On the whole the KPMG report was very complimentary. Yes there
were one or two things it said we needed to change, but these were
just an extension of the international agreements we already have
in place,” says Phillipp-Bassett. The island’s
ability to escape the shame of an OECD blacklisting was due in no
small part to the fact it agreed to a deal with the international
body. Bermuda said it would implement changes to its markets. But
the blacklist avoidance is also because Bermuda was in a position
to bargain whereas some of its less salubrious offshore rivals were
not.
Changes agreed with the OECD included altering the rules so foreign
companies can own firms that trade in Bermuda. Also, Bermuda agreed
to co-operate fully when national governments want information on
tax evaders. As a centre that has always tried to avoid dirty money,
the OECD’s criticisms of numerous other tax havens merely
cast a holy glow upon Bermuda.
Bermuda Tax Haven & Offshore Jurisdictions
As one expert in the Bermudan economy says: “Bermuda is one
of the most successful offshore jurisdictions. It is also one of
the cleanest. It is clean business and they are making more money
than other countries that have more scandal.”
On the whole, Bermuda retains its strong reputation and the government
has done little to upset the apple cart. Despite the potential clouds
it is still a legitimate well-regulated and sophisticated home for
investment capital.
|
