Barbados Reaping Rewards Of Canadian Tax Treaty

by Amanda Banks, Tax-News.com, London

09 September 2002

Caribbean jurisdictions such as Barbados and the Cayman Islands are catching up with Bermuda in terms of the provision of selected financial services, according to a report in the Royal Gazette last week.

The newspaper - somewhat grudgingly - admitted that 'No one island has an exclusive franchise,' explaining that although Bermuda's speciality is international reinsurance, Cayman has atttracted more than 500 captive insurers, and Barbados's tax treaty with Canada has afforded it an advantage in the provision of financial and investment services to Canadians.

Quoting the CEO of the Barbados Investment and Development Corporation, Anton Norris as observing that: 'Obviously we see Bermuda as the major competitor in the international insurance area, in addition to the Bahamas and the Cayman Islands,' the Royal Gazette commented on Thursday that:

'Bermudians might take issue with the inclusion of others on that short list, but the perceptions are clearly out there that Bermuda is the leader of the pack, rather than the only member of the club.'

The article went on to list the structural differences and similarities between Bermuda and Barbados in particular, and praised the latter's attitude towards attracting international business, a viewpoint which means that more incentives are offered to attract foreign service providers to the Island.

Quoting Barbados law professional, Dr Trevor Carmichael as observing that: 'With a greater number of thriving international ventures on the Island, there is therefore more employment throughout the service sector, thereby benefiting the domestic economy,' the Royal Gazette's regional examination concluded wryly that:

'Now there's a difference; an exactly similar message still has not percolated fully throughout Bermuda's population.'

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