In fact, Bermuda was singled out by one of the spokespersons presenting the report at today's OECD press conference as one of world's most successful offshore financial centres and an example that it is possible to achieve a high level of transparency and success.
"Bermuda is pleased and comfortably reassured that the OECD has acknowledged and validated our longstanding cooperation with international authorities. Through BIBA's partnership with government, we will support the continued implementation of thorough and appropriate legislation to regulate the conduct of, and environment for, business in Bermuda," said Ray Medeiros, Chairman of BIBA.
To ensure appropriate transparency, Bermuda already has an exchange of information agreement with the United States, and has agreed recently to adjust certain regulations to further that effort. "From our perspective, an appropriate level of transparency validates the integrity of our jurisdiction; if managed properly such an agreement does not compromise our business operations," said Mr. Medeiros.
"Ultimately, as we look to the future of the global economy, it will be those jurisdictions that adopt and maintain international standards that will be most highly regarded. These jurisdictions will by extension inspire confidence and continue to attract quality business, as we have experienced in Bermuda," Mr Medeiros added. This echoes another panel members comments at today's OECD press conference: "Centres which have a clean reputation give themselves the best chances for longer term success."
Mr. Medeiros continued: "Clearly the time and effort spent by the Government for well over two years now made a very good case for Bermuda, together with input offered by the private sector. While the omission from the list is reassuring, the decision was largely expected by the Bermuda business community, which includes some of the world's most reputable firms."
Bermuda's tax structure is consistent with international standards and is €˜tax neutral' meaning that while Bermuda does not impose a corporate tax, it does have a consumption-based tax intended to tax individuals and domestic and international companies in a fair and uniform manner. The government also raises revenue partly through custom duties, payroll taxes, and land tax.
The OECD's decision to omit the island from their list acknowledges Bermuda's efforts at maintaining and further developing the highest level of ethical tax practices. This comes on the heels of yet another predictable outcome for Bermuda. The Financial Action Task Force (FATF), which named 15 other countries as "non-cooperative" in its anti-money laundering efforts, notably excluded Bermuda from their condemning list.
Recent events have shown that Bermuda has earned a reputation as a world-class centre of commerce, featuring a business-friendly environment, a stable and growing economy, and an unmatched assembly of talent and intellectual capital in key sectors, including insurance, financial services, and, more recently, electronic commerce. Bermuda's regulatory and legal system has evolved over the years, not only facilitating business but allowing it to flourish. The island offers international companies a sophisticated high-tech infrastructure and is rich in intellectual capital.