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The Economy of Bermuda

Positive Talking Points

 

Rebuttal: Bermuda is NOT a Tax Haven

Bermuda is the Premier International Finance Center

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WELCOME to the Bermuda Economy Talking Points web page.

This site is intended to be use as POINTS OF REBUTTAL to provide counterpoints to any negative publicity about our Island that is incorrect, inaccurate, or just plain wrong regarding Bermuda's economy, business, people, laws and regulations, and mutual cooperation with its neighbors and supporters in other countries.

We encourage readers to send in any additional information that is relevant to these topics to info@marthamyron.com.

Please be sure to provide source references so we have every talking point absolutely verified and defined.

Bermuda residents all, let us work together provide a positive image at all times regarding our beloved Island. We are unique, Bermuda is unique, we have earned the reputation that Bermuda has, that of THE PREMIER INTERNATIONAL OFFSHORE FINANCE CENTRE.

 

TALKING POINT #3 " We need more tax competition between nations - not less", from Mr. Gary Clyde Hufbauer. Letter to the Financial Times, June 24, 2013 9.30pm

"Sir, Corporate tax evasion is always a popular political target, and so it proved to leaders at the recent Group of Eight summit. Cheating on taxes is bad form, whether done by individuals or corporations. But countries need to be careful that the rightful war against tax cheats does not descend into a misguided campaign against tax competition.


............ Contrary to popular belief – and unlike the individual income tax – the corporate tax does little or nothing to reduce inequality between households. The faster corporate tax rates are slashed, the better for economic performance. In the real world, corporate tax rates are cut not because ministers take a refresher course in public finance but because investment migrates to competing jurisdictions that offer lower tax rates.
"  quote from Mr. Gary Clyde Hufbauer, Reginald Jones Senior Fellow, Peterson Institute for International Economics, Washington, DC, US. http://www.ft.com/cms/s/0/d124c418-d9d3-11e2-bab1-00144feab7de.html#ixzz2XElajJyv


TALKING POINT #2  Governance and Economic Context: # 14. Bermuda has a consumption-based tax system, focused primarily on customs duty, which is supplemented by taxes on wages and government fees (stamp duties, payroll tax, passenger taxes and property tax). 

The ratio of total government (tax) receipts to Bermuda's GDP was approximately 17.93% in 2007, and 17.64% in 2008. Bermuda does not impose any direct taxes. Source: OECD_GLOBAL FORUM ON TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES, Peer Review Report Phase 1 Legal and Regulatory Framework, BERMUDA 2010, a summary of Bermuda's legal and regulatory framework for transparency and exchange of information for tax purposes in Bermuda.


TALKING POINT #1 Whitehall does not consider Bermuda as a tax haven, according to Governor George Fergusson.

 

“The Premier’s visit to London last weekend was greatly appreciated by the Prime Minister, David Cameron,” Mr Fergusson said.

“In his speech at Saturday’s G8 ‘Open for Growth’ event to heads of state, NGOs and others, Mr Cameron commended the leadership shown by the Overseas Territory and Crown Dependency Premiers and Chief Ministers in the area of transparency.

 

“It is clear that Bermuda is not a tax haven. It has a long record of transparency on beneficial ownership and banking, and tight and widely respected regulation of financial services. Its core business is insurance and reinsurance, which is conducted to the highest standards.

 

“And non-resident bank deposits are not a feature of its economy. As the British Government has focused its G8 Presidency on promoting transparency and reducing aggressive tax avoidance, not least to ensure that developing countries can develop their own tax base, Bermuda has been well placed to stay in the front echelon of economies on tax and transparency issues.

 

“The standards in this area have risen rapidly in recent years. Bermuda, like other countries, including Britain, has had to, and will continue to have to, bring in measures to stay at the front. But Bermuda is doing this from a position of strength. The commitments made, with others, last weekend have not involved Bermuda having to move radically: it was already a leader in the number of the bilateral Tax Transparency Agreements which it had negotiated.

 

“As the global practice for this switches to an international, multilateral agreement, Bermuda already has extensive experience of operating tax transparency agreements with other countries. It will be able to set out provisions to safeguard its interests.

 

“Bermuda has had a proud record of benefiting from a reputation for probity. It is clear that, even in this now fast-moving area, Bermuda will remain among those at the front.” Source: The Royal Gazette, June 21, 2013

 

 

Further critical talking points that further define who Bermuda is, how Bermuda conducts business, what domestic and international laws, agreements, and regulations that are within our infrastructure that have earned us the reputation as a highly sophisticated rigorously innovative country with a sterling reputation for integrity and transparency - will be summarized below. Commentary by industry leaders, readers, and supportive residents of Bermuda is welcomed.

Regulatory Work in Process

* TIEAs

* FATCA US-Bermuda Intergovernmental Agreement Model 2

* Corporate structure

* AML

* KYC

* Bermuda Tax Structures

* OECD - Bermuda does not meet definition of tax haven

* Tax Transparency

* Investment Regulations

 

 

 

 

 

 

 

 

 

©2000 - 2015 Martha Harris Myron Southampton Bermuda All Rights reserved