- August 2, 2023
- General
Photo Caption: (L-R) Jim Wilson, VP of Corporate Finance at RF Bank & Trust; Kevin Moree, Partner at McKinney, Bancroft & Hughes; and Simon Wilson, Financial Secretary.
(Nassau, The Bahamas) RF Bank and Trust recently held an exclusive summit gathering executives and decision makers to address key market trends and pressing matters impacting the business community. During a panel discussion on the Government's green paper on corporate tax, Financial Secretary Simon Wilson revealed that any implementation of corporate taxes is not expected for at least four years.
This statement comes in response to inquiries about the OECD/G20 Inclusive Framework's 15% global minimum tax proposal for multinational corporations, which was agreed upon by 137 member countries, including The Bahamas. The OECD has set a deadline of 2024 for countries to implement these reforms, as announced earlier this year. Mr. Wilson based his estimate on the time required to establish systems for record keeping and tax collection, drawing parallels to the process of introducing the Value Added Tax system in The Bahamas.
Kevin Moree, Partner at McKinney, Bancroft and Hughes, echoed Mr. Wilson's projections, highlighting that the lack of an existing framework for corporate taxes in The Bahamas necessitates cautious and thorough planning. Mr. Wilson emphasized the importance of not rushing the implementation, citing the country's delicate fiscal situation and substantial foreign debt. He warned that hasty execution could lead to capital flight, with potentially irreversible consequences for the nation.
Mr. Wilson also stressed the need for the country to remain competitive with other jurisdictions that are also considering introducing the new tax. Striking a balance between timing the Corporate Income Tax (CIT) rollout alongside competitors was deemed crucial.
Concerns were raised during the summit regarding potential repercussions or penalties for missing the OECD's mandated deadline. Attendees speculated about potential blacklisting of the country. Jim Wilson, VP of Corporate Finance at RF Bank & Trust, who moderated the discussion, acknowledged these concerns and urged participants to actively engage in the feedback process for the green paper to provide valuable insights and direction to the government.
The panel discussion was preceded by a mid-year global economic recap by Steve Edwards of MorganStanley and a local market recap by David Slatter, RF VP and Head of Investments. Both of which acknowledged a slowing of US markets and potential recession in the near future.
For those interested in accessing the full discussion and other presentations, they can visit rfgroup.com or reach out via email to david.slatter@rfgroup.com.
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About RF Bank & Trust
Since its inception in 1997, RF has been committed to helping our clients create and manage wealth. We are your regional private bank connecting with the best in local and international investments. Collectively, we have helped clients raise in excess of USD $2.2 Billion in capital, have $1.4 Billion under management and 2 Billion+ assets under administration. Offering a wide range of investment products and services, our financial solutions are designed to help individuals and corporate clients meet and achieve their investment goals. These include Mutual Funds, Investment Management. Investment Banking, Group & Personal Pension Plans, Personal Retirement Accounts, Stock Brokerage, Trust & Estate Planning, and Educational Investment Accounts.
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