Describing the Tax Information Exchange Agreement (TIEA) as a treaty The Bahamas resisted for years, the editor of the Soverign Society’s Offshore A-Letter suggested that by deciding to enact the TIEA legislation, “It makes one wonder if The Bahamas are still a sovereign nation. Or are they just an offshore territory of the United States IRS colonial division.”
According to Rowena Bethel, legal advisor in the Ministry of Finance, although people tend to use the word agreement and treaty interchangeably when referring to the TIEA, “it definitely isn’t a treaty.”
She told The Guardian on Monday that the TIEA would fall under the classification of executive agreements that the United States government at times enters into for the purpose of cooperation in certain matters between themselves and other countries.
“These agreements are not enforceable as treaties. Treaties are enforceable under the rules of international law…The executive agreement, which is what the TIEA is, is not enforceable under international law.”
Ms Bethel stated that the kind of recourse that one would have at an international level for a treaty does not exist for this type of arrangement. “Basically, if one party reneges then the other one simply walks away but he can’t compel enforceability of anything like that,” she said.
While this article contained a lot of facts about the offshore financial sector in The Bahamas, how the facts actually related to offshore business in the Bahamas was misconstrued, a reality that only underscores the need for the country to implement consistent public relations as a financial jurisdiction.
A number of offshore websites and newsletters as well as international mediums closely monitor developments in offshore jurisdictions including The Bahamas to determine the strength and future viability of these industries. Recognizing this fact, the Bahamas Financial Services Board, which promotes The Bahamas as a strong international financial sector announced plans to engage in an active media outreach programme.
In an interview with The Guardian, Wendy Warren, executive director of the BFSB revealed that the board has plans to engage in a highly active media outreach programme, with the international press to ensure editors and writers who cover international centres and developments in the financial services industry are provided with information on a regular basis about developments in the jurisdiction as well as The Bahamas’ position on specific issues.
By Martella Matthews, The Nassau Guardian
