The Tribune

THE government’s “in-depth” study on tax reform should have produced preliminary results by the end of the year, Minister of State for Finance Kwasi Thompson said yesterday.

He told the Senate that preliminary work on the study had begun with the work expected to be in full swing by September.

“We will publish a white paper on the findings of the study and will ensure broad consultation and input from the public regarding the outcomes of the assessment,” he said.

“We want to ensure that whatever significant changes we propose to the tax framework, that these changes are informed by reasoned and empirical analysis, and not simply the conjecture and posturing that too often gets attention when matters such as these are raised in the public domain.

“At the end of the day, Madame President, we want to ensure that we reform our tax system in a way that supports even greater opportunities for Bahamians to thrive in our country.”

Earlier this month, Europe’s Group of Seven (G-7) finance ministers agreed on a minimum 15 percent global corporate tax rate. In response, the government stressed that it is The Bahamas’ “sovereign right” to determine the tax structure best suited for the country.

Referring to the issue, Mr Thompson said the government continues to work with established and credible international financial centres to remind the international community that the country has been meeting, and will continue to meet all conventions and treaties to which it is a signatory.

“We are a well regulated jurisdiction and we consistently operate within the parameters of all arrangements to identify and address persons who would attempt to use our jurisdiction to evade legal obligations anywhere,” he said.

“That said, we recognise that as the G7 seeks to make further changes to the global tax architecture, we cannot sit idly on the sidelines. We are participants in a global environment. We embrace the notion that, even in the midst of changes, there are always opportunities.

“We have already begun the dialogue with the financial services sector to gain an understanding of how the proposed new global tax protocols may impact their business. At the same time as we contemplate tax reform, we are going to work with stakeholders to determine how best to position the changes in the global landscape to adjust both our tax systems and the portfolio of products on offer by our international financial institutions to ensure that we create more opportunities here in The Bahamas. I am pleased to say that industry partners have embraced this proactive approach. We will have much more to say on this in the coming months.”