Fidelity CEO: It’s a sensible position
NASSAU, BAHAMAS — The government yesterday expressed its support for the proposal of the G20/OECD towards global tax reform, while noting that it has lodged reservations particular to this jurisdiction.
The Ministry of Finance and Ministry of Financial Services, Trade and Industry & Immigration in a joint statement yesterday endorsing international taxation reform noted: “Following consultation with key stakeholders and leaders of industry associations, the government of The Bahamas has expressed its support for the proposals of the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting to reform the global taxation system.
“These proposals and the accompanying rules for international taxation are geared at addressing the tax challenges arising from the digitalization of the global economy.
“The government has at the same time lodged reservations particular to The Bahamas. The support of The Bahamas for the Inclusive Framework’s two-tier reform proposal, referred to as Pillar 1 and Pillar 2, is consistent with and informed by the stated policy principles of the government with respect to the pursuit of tax fairness and equity, as recently outlined by the prime minister during the budget exercise.
“The proposals seek to establish, inter alia, minimum tax measures for companies with gross annual earnings of 750 million euros (US$889 million) or greater. The rules would not apply to companies under this threshold.
“As a member of the Inclusive Framework, The Bahamas has actively participated in the development of these measures and has ardently articulated the legitimacy of jurisdictions such as The Bahamas. It views these measures as a viable option for ensuring that small jurisdictions benefit from any measure to tax entities operating within its jurisdiction.”
Fidelity Bank (Bahamas) CEO Gowon Bowe told Eyewitness News: “It’s a sensible position given The Bahamas is part of the global economic landscape, and now needs to position itself to take advantage of such a global initiative that requires developing our vision for The Bahamas in terms of value proposition and aligning our actions with that vision via the National Development Plan.
“The economic pillar of the National Development Plan addresses not only our economic drivers, but also our fiscal strategy, which includes tax structure. All must be aligned and rowing in one direction — economic, social, environmental and governance pillars.”
Last month, G7 finance ministers agreed to a landmark deal to battle tax avoidance, agreeing in principle that multinational companies pay a minimum tax rate of at least 15 percent in each country where they operate.
