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charles
Here a Lot
Posts: 115
Registered: Feb 2008
 
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 Posted February 19th, 2010 11:05 PM IP   
That was the lead article in the Freeport Times today. I hope they have fun promoting that, but if they don't understand the details they will come off as a banana republic to any company with a decent understanding of repatriation of profits. The chairman of the GBPA got the message, but died. Now the ship has no rudder. If a company wants to leave the tax free profits in the Bahamas they can, but if they want to bring it home (at least to the U.S) they can't. Unless they have other non U.S. earnings taxed at a higher rate than the U.S. corporate tax rate (foriegn tax credit) they can't "repatriate the money". If they have the tax credit they can bring it back to offset other higher offshore rates. That's how Ireland (10% tax rate) attracted most of the American pharmaceutical companies. The Irish Development Authority knew offshore tax implications and had a highly educated work force. I believe their Bahamian counterparts don't have a clue, and will do more harm than good in promoting something they don't understand. GBI was built on an industrial/business plan which has lost it's way and unless righted has have little chance of prosperity unles they can attract tourists again.
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Danny
Grand Pooh-Bah of the Board
Posts: 296
Registered: Feb 2008
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Posted February 20th, 2010 09:53 AM IP
Chas,
I confess to having little to no knowledge of business implications as you describe them, and really don't want any, but I have read enough of the goings-on at the GBPA to know its frustratingly business as usual for the Bahamas. I'm getting repetitive every time I say this, but it IS sad. So much potential and so little follow-through.
Danny
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