Barbados monopoly on Canadian Captives is no more – KPMG says Bermuda is better

New Canadian tax treaty has Bermuda looking to profit from Barbados client base

The folks in Bermuda don’t want to upset anyone, but it’s obvious that they are after what Barbados has had a monopoly on for decades.

“Despite the two rival jurisdictions sharing some similarities, Bermuda has the competitive edge (over Barbados) in terms of level of regulation, quality of service provision, access to the re/insurance market and geographical proximity for Canadian businesses.”

Jason Carne, KPMG Bermuda partner talks to Royal Gazette Online

Bermuda just signed a tax treaty with Canada that will allow Canadian insurance companies to form offshore branches and pay little tax just the way they have been doing it in Barbados for twenty years and more. Good for Bermuda – but not so good for Barbados.

KPMG claims Bermuda has “The competitive edge…”

What does it mean for Barbados? Is Mr. Carne shining everyone on?

Let’s hear from our Barbados government representatives… or maybe KPMG Barbados. Hello? KPMG Bridgetown? You there?

4 Comments

Filed under Barbados, Offshore Investments

4 responses to “Barbados monopoly on Canadian Captives is no more – KPMG says Bermuda is better

  1. X

    He doesn’t quite provide an independent view given that his firm would stand to benefit from the increased business he expects. He does make a good point about the level of regulation; some of the issues with our office of the Supervisor of Insurance are well documented on BFP and elsewhere and the CLICO issue made it worse. But in terms of the quality of service providers, Barbados is just as competitive as Bermuda, and I don’t buy the closer proximity to Canada as a deciding factor – what’s an extra 2 hours on a airplane when the destination has much better weather during the winter. These captive insurance guys don’t do business traveling in the summer when Bermuda’s weather is nice.

    Where we remain decidedly more competitive is on cost despite what he suggests and anyone that has been to Bermuda can attest. If you think Barbados is expensive you should check that place out. And those higher costs of living carry through to service provider fees, hotel and meeting accomodation, restaurants, director fees, etc.

  2. Empty

    Is George Hutson the Minister of International Business? Nothing is bought until it is sold, Bermuda sold their destination while we continue to complain about world recession. George Hutson performance has poor rakey. How could Freundel Stuart not fire him?

  3. J. Payne

    @Empty. I agree. A handful of countries have surpassed the number of taxation agreements which Barbados has in a very short time. Barbados calls them Double Taxation Agreements (DTAs) but I hear the term Tax Information Exchange Agreement (TIEAs) used instead by other nations. The same minister also heads up International Transport but I’ve been hearing Jamaica going all out to sign new Open Skies Agreements in order to secure their place in Caribbean tourism. I can’t say Barbados has followed suit.

  4. J. Payne

    I notice how Barbados has rushed to hire a firm from Canada to put all of Barbados’ legislation on-line. Coincidence?

    Article: Canadians to help upgrade Barbados laws
    Date: Posted: 06/11/2011 5:57 PM
    Source: http://www.BarbadosToday.bb – Barbados Today

    Link: http://m.barbadostoday.bb/bbt/db_258712/contentdetail.htm?contentguid=F7sItVgU&detailindex=1&pn=0&ps=4&full=true#display

    Barbados has contracted a Canadian company to help brings its laws and regulations into the 21st Century.

    Irosoft ( http://www.irosoft.com ), based in Montreal, said to be a world leader in acts and regulations management solutions, has partner with another Canadian company, ESI Technologies ( http://www.esitechnologies.com ), and signed an agreement with Government “for the implementation of its LIMS suite, a complete legislative management system”.¬†

    “The Government of Barbados, through its Justice Improvement Programme initiative, chose to implement our LIMS solution. This will enable its citizens and the international community to easily access its acts and regulations,” Irosoft President and founder, Alain Lavoie said.

    “We are truly happy to have been selected for this project. It is the result of several months of work by our sales and development teams.

    “It’s a wonderful demonstration of what two Quebec SMEs can accomplish when they join forces to export their know-how to the international market,” he noted.

    Lavoie said Barbados would be getting a system which “covers every step of legal documentation production in an integrated way”.

    The company’s officials said the LIMS programme was “one of the few complete solutions currently on the market that enable national, provincial and municipal governments to manage their acts or their regulations, whether unilingual or bilingual, from drafting all the way to publication”.

    It also enabled users to “search for and reconstruct acts and regulations for a specific point in time and to visualise provisions that have been assented to, but that are not yet in force”.

    It was pointed out that coming on the heals of Bermuda, New Brunswick and Quebec City, Barbados was among a select few to “entrust Irosoft with the automation of its legislative drafting, consolidation and publication processes”. (SC)[-End]