Jamaica pushes plan to be financial centre

[Lazie]

Jamaica is pressing ahead with its vision to become a centre for international financial services.
Minister of Industry, Investment and Commerce Karl Samuda says that a draft bill to establish a statutory body for the development and promotion of the country in that way has been referred to the Attorney-General for legal opinion.

He said it was hoped that the Bill would be passed during the first quarter of the 2010/11 fiscal year.
Samuda also indicated that an evaluation of Jamaica's ability to position itself competitively in this industry and to identify Jamaica's possible product offerings or options for a local International Financial Services Centre (IFSC) is also underway.
"A comprehensive preliminary report has already been submitted and is being reviewed by a committee, established to oversee the implementation of Jamaica's international financial services centre," he said.
Samuda also revealed that work will be undertaken to review the double taxation treaties. This will be done to determine their relevance in the current environment, and whether they need to be renegotiated to support the attractiveness and development of the IFSC, he said.
He said that the government has identified the financial services sector as a priority area for development in this fiscal year.

http://www.jamaicaobserver.com/busin...centre_7630118

[Lazie]

Bahamas notes Jamaican financial centre threat

The second biggest industry in The Bahamas - financial services - could soon have another competitor on its doorstep as Jamaica announces it is entering the market.
Unlike The Bahamas the Caribbean rival has a corporation income tax - of some 33 percent - but that has not stopped other regional players with taxation laws such as Barbados flourishing as they take advantage of double taxation treaties with foreign nations.
In a recent announcement Jamaica's Minister of Industry, Investment and Commerce, Karl Samuda, said that a draft bill to establish a statutory body for the development and promotion of Jamaica as a center for international financial services had been referred to the attorney general for legal opinion.
The minister, who was opening the 2010/11 Sectoral Debate in Gordon House last week, said it was hoped that the bill will be passed during the first quarter of the 2010/11 fiscal year.
He said Jamaica's ability to position itself competitively in the sector and to identify its possible product offerings/options for a local international financial services center (IFSC) was currently underway.
Samuda also said that work will be undertaken to review the double taxation treaties. This will be done to determine their relevance in the current environment, and whether they need to be renegotiated to support the attractiveness and development of the IFSC.
He said that the government has identified the financial services sector as a priority area for development in this fiscal year.
While Jamaica does have income taxation for corporations there are some tax-free exemptions such as pension and superannuation funds approved.
Respected QC Brian Moree said The Bahamas should not dismiss Jamaica's bid.
Moree, senior partner of McKinney, Bancroft & Hughes, said: "My view is that there is already a great deal of competition in the world for financial services so any additional viable jurisdictions coming into the market must demand our attention, we must keep our eyes on developments.
"We need to remember that there are countries in the region who have come into the market quite late, much later than The Bahamas, and done quite well. Look at Barbados, which has a tax structure, it has been quite creative in using that to take advantage of double taxation agreements and has had some significant success.
"We have to watch these kind of challenges. This is a difficult and key time for financial jurisdictions and we cannot be complacent.
"This should serve as a reminder that we need to be dynamic and competitive to protect our market share. We need to address legislation that has to remain up to date and the resources we give what is the second biggest industry in The Bahamas."

http://www.jamaicaobserver.com/busin...threat_7630131