AN employers group leader has endorsed the proposed corporation minimum tax after the government released a white paper for consultation.
Bahamas Chamber of Commerce and Employers Confederation (BCCEC) CEO Leo Rolle said it was a potential solution for increasing government revenue and addressing tax disparities.
Mr Rolle said that the tax, which targets large multinational enterprises, could offer a fair approach to taxation without burdening local businesses. He added that the local business community already faces numerous challenges that impact the cost of doing business, making this approach more equitable.
“We have reviewed the paper and subsequent documents and believe that it provides a reasonable measure of added revenue for the government and one that seeks to eliminate the tax disparity by fostering equitable tax changes, applicable for those multinational companies and not domestic ones - as the local business community already has a plethora of challenges to contend with that impacts the cost of doing business,” said Mr Smith.
On Monday, the Davis administration released a draft domestic minimum top-up tax bill for consultation.
The proposed Pillar 2 corporate tax would impose a 15 percent tax on profits for large multinational enterprises (MNEs) with at least €750m in annual turnover.
This measure is part of The Bahamas’ commitment as one of 140 countries that have agreed to the G-20/Organisation for Economic Co-Operation and Development (OECD) framework.
The consultation period for the draft bill will conclude on September 16, with the bill expected to be submitted for Parliament approval on October 9.
While Mr Rolle supports the tax, he urged the government to proceed with caution.
“What we caution the government on is the implementation of these reforms without extensive stakeholder involvement and educational campaigns that provide contextual basis for the implementation and ensures adequate comprehension by the international business community with a local presence,” Rolle warned.
He stressed that such measures are crucial for a smooth transition and for maintaining foreign direct investment and ease of doing business in the Bahamas.
Mr Rolle also highlighted that the corporate minimum tax will not apply to businesses with no foreign presence, those with less than €750m in turnover, as well as government entities, international organisations, and non-profit organisations.
“We are pleased to note, based on the Pillar Two Module Rules provided, that taxpayers who either have no foreign presence or less than €750m in consolidated revenues and government entities, international organizations and non-profit organisations, among other business types are exempted,” Mr Rolle said.
He emphasised the importance of clearly communicating these exemptions to affected parties.
“This should be highlighted and properly communicated in easily understandable and digested bites for those most impacted,” Mr Rolle added.
“The BCCEC is ready to collaborate with the government and provide expertise to ensure the effective study, analysis, and phased implementation of the tax reforms. “As always, the BCCEC welcomes the opportunity to collaborate with research, discussion, and leveraging the expertise of the Tax Reform Committee to assist the government with proper study, analysis and phased implementation of the same; including the much-needed reforms of our existing tax regime.”
Comments
bahamianson 2 months, 2 weeks ago
Another tax for what? Where is this getting us. People are still damn poor while politicians have all kind of money to fly everyqherw and have lavish indep3ndence parties for thems3lves and frienda. The money does not reach the poor man.
BONEFISH 2 months, 2 weeks ago
This tax is an idea of the Biden administration through his treasury secretary Janet Yellen. This is designed to go after american multinational who move their corporate head quarters aboard to reduce their tax liability to the U.S. government. This idea is supported by the OECD.Over 140 countries signed on to it including the then Minnis administration.
DWW 2 months, 2 weeks ago
predates biden by about a decade. which calls in the question the rest of the statement.
ThisIsOurs 2 months, 2 weeks ago
They always paint this rosy look how much money we guh make scenario.
The one thing you cannot predict is how the customer will respond to your price increase. No intl company has to operate in the Bahamas. And word to the wise, they actively plan for the day they might pick up and leave like we plan for hurricanes. If the reason for moving here was to reduce tax burden, what's the reason for being here? For our sake it better be a good one.
DWW 2 months, 2 weeks ago
tax never goes down. always up up up as greed kicks in?
ExposedU2C 2 months, 1 week ago
It is painfully obvious that this clown Leo Rolle, like that other clown Gowon Bowe, is a big time proponent of all the following:
1) More taxes on the already struggling Bahamian people and their businesses;
2) Bigger government as a means of reducing unemployment and growing a social welfare state;
3) Higher inflation that naturally results from more taxes on businesses and more social welfare spending by a bigger government; and
4) Doing whatever foreign globalists demand without regard to our nation's own sovereign interests and the well-being of the Bahamian people.
In short, Rolle, like Bowe, has revealed himself here to be a far left leaning socialist of the globalist variety (bordering on Marxist), as opposed to a sensible progressive in the conventional sense. Has he too become a card carrying member of the CCP?
Most of us remember only too well how the likes of Rolle and Bowe vociferously supported the introduction of VAT and the later increase in the rate of VAT, all under the guise of an urgent need to actually start paying down the balance of our national debt. They later conveniently joined the chorus of our spendthrift incompetent and wasteful politicians when all of them began singing, "No, no, we never intended for VAT to actually pay down the balance of the national debt, what we really intended was that VAT would be used to help slow down the pace of growth of the national debt." Talk about selling the Bahamian people a worthless promise!
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