Offshore Investing in The Bahamas May No Longer Be a Viable OptionOffshore Account Update
Posted on June 29, 2018 | Share
If you invest money offshore in any foreign financial institution, you should be aware of how the global crackdown on offshore tax evasion is reshaping the international banking industry. A Boston tax attorney can provide you with insight and assistance in understanding your rights as an offshore investor amidst profound regulatory changes and can help you to protect your financial situation as the IRS and other global taxing authorities crackdown on offshore investors.
There have been numerous actions taken in recent months and years that have affected financial institutions that primarily cater to offshore investors and that have impacted individual investors as well. Just recently, the Tribune provided details about some of the different ways that global efforts to fight tax evasion have adversely affected the Bahamas.
The Bahamas May Not Be a Financial Destination Any Longer
The Bahamas has been impacted in major ways by ongoing efforts by taxing authorities and regulatory bodies to stop investors from keeping money offshore and failing to disclose their invested funds to authorities in their home countries.
Just recently, for example, the Bahamas was blacklisted – and this reportedly came as a shock to the government of the Bahamas, which is trying to work to get off the blacklist and avoid the consequences of it.
The Bahamas government is working with the Organization for Economic Cooperation and Development (OECD) to address the fact that it has been blacklisted. The Bahamas was blacklisted because of its regulations and policies, which have made it a popular offshore financial center. It would have to make major changes in order to get off the blacklist. This would include changing corporate income tax rules. It would also include cooperating with other countries in naming the ultimate beneficial owners of offshore structures that investors have created.
If the Bahamas were to make these major changes, it would lose its attractiveness as a place for offshore investors to put their money. However, if it does not make these changes, the financial institutions in the Bahamas could be adversely affected anyway as a result of being blacklisted.
The Tribune is warning that the Bahamas may no longer be a financial center going forward as a result of the OECDs demands and the actions of other regulatory bodies including the International Monetary Fund (IMF), the European Union (EU) and the Financial Action Task Force (FATF). Unfortunately, if the Bahamas loses its status as a destination for offshore investors, this could hurt the economy.
Many banks have established a physical presence in the Bahamas as investing there has become popular. These banks have provided career opportunities for people who live in the Bahamas. Those opportunities will be lost and the economy will become even more dependent upon tourism.
Individual investors could also suffer adverse consequences as well if the Bahamas is no longer able to serve as a financial center where people can invest funds outside of their own countries. A Boston tax attorney can offer assistance to investors who want help determining what their options are for making offshore investments. Contact Kevin Thorn today.