Bahamas throws support behind global tax plan

The Ministry of Finance revealed in a statement yesterday that The Bahamas has formally expressed its support for the G20 and Organization for Economic Cooperation and Development’s (OECD) plan for a global tax system, which could impose a minimum 15 percent corporate tax on companies with gross annual earnings $750 million or more.

According to the statement, this country’s support for this inclusive Framework on Base Erosion and Profit Shifting to reform the global taxation system aligns with the Bahamian government’s “pursuit of tax fairness and equity”.

“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 statement points out. “The government has at the same time lodged reservations particular to The Bahamas. 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.”

Yesterday US President Joe Biden’s administration claimed victory for 130 countries backing this initiative, a CNN article explained.

Managing Consultant of Next Level Solutions Hubert Edwards said these kinds of announcements could prove to be disruptive and should move the conversation forward on the future of tax reform in The Bahamas.

“I believe that this not only draws our attention to the international side of our economy, but there will be spillover on the domestic side also,” he said.

“Are we ready for a shift in taxation? Is this the right time to contemplate it? Will leaving it untouched put the country and specific sectors at a disadvantage? Could we be potentially giving up future tax revenue by not contemplating a shift? Are we giving up existing opportunities to tax wider?”

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source https://thenassauguardian.com/bahamas-throws-support-behind-global-tax-plan/