Bahamas, The Commonwealth of
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Capital: Nassau
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Population: 300,000 (est. 2003)
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Languages: English (official), Creole
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Area: 10,070 sq. km (land area)
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Currency: Bahamian dollar (BSD)
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Fiscal year: 1 July - 30 June
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Independence status: 10/07/1973
(from U.K.)
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BACKGROUND
THE COMMONWEALTH OF BAHAMAS, as they are officially known, is made up
of some 700 islands and 2,500 cays or islets scattered over 750 miles
of the Atlantic Ocean. Only about 25 of the Bahama islands are inhabited,
and three-fourths of the people reside on just two islands; New Providence
(where Nassau the Capital is located) and Grand Bahama Island (Freeport).
The Bahamas is a stable, developing nation with an economy heavily dependent
on tourism and offshore banking.
Legal System
Today, the Commonwealth of the Bahamas is a constitutional monarchy
with Queen Elizabeth II of Great Britain the official head of state.
Under the 1973 Constitution, the British Monarch appoints a Governor-General
who ceremoniously appoints other members to the 17 member Senate. Effectively,
the black majority, which control the Assembly, now control the white
minority in the matters of political affairs in the Bahamas. In regards
to political stability, you have to rate the Bahamas as one of the most
stable tax havens in the world. With strong ties to Britain, protection
from a foreign aggressor is practically guaranteed by the British Royal
Navy.
Currency
The stability of the Bahamian economy is partially due to the stablization
of Bahamian Dollar. The Bahamian Dollar has been pegged on a 1:1 ratio
to the U.S. Dollar to facilitate the cash transactions etc... The U.S.
Dollar and the Bahamian Dollar are used interchangeably throughout the
islands.
Confidentiality
Confidentiality is excellent with the English common law duty of confidentiality
being preserved and expanded upon by statute imposing penalties upon
banks, attorneys, auditors and government officials who are privy to
private information. Additionally, the Bahamas have no tax treaties
or agreements for the exchange of information with any other state except
agreements covering mutual assistance in cases of drug trafficking.
Taxation
An International Business Company("IBC") is a company, which
is restricted from carrying on business with persons resident in the
Bahamas, and cannot invest in real property situated in the Bahamas,
other than by holding a lease of property for use as an office. An IBC
cannot carry on any banking, trust, insurance or reinsurance business,
or provide other restricted businesses. An IBC is not taxed in the Bahamas.
Maintaining a bank account or retaining local professional services
etc.. is not considered carrying on a business in the Bahamas under
the Act.
New Legislations
The International Business Company ("IBC") Amendment Act 2000
was introduced and repealling the previous IBC legislation which allowed
for companies to be quickly and easily incorporated for the purpose
of transacting offshore business. Main new enactment is:-
