An intentional offshore
centre. Turks and Caicos is unique among those jurisdictions
commonly called "tax havens" in that its development as
an offshore centre was a considered decision by Britain, following
the recommendations made in the UK Government-sponsored Jakeway
Report in 1970. Over the years since, a number of legislative
measures have been enacted, including legislation on banking, confidentiality,
companies, insurance, trusts and other measures aimed at encouraging
the utilisation of Turks and Caicos by international institutions
and firms. The desire to foster a strong and reputable finance industry
in Turks and Caicos remains central to Government policy.
The finance industry is supervised by the Financial Services
Commission, headed by a British superintendent with a background
in the private sector. The industry itself is represented
by the Financial Industry Association, which comprises the
following professional bodies: the Bar Association,
the Society of Accountants, the Bankers Association,
the Association of Licensed Trustees, the Association
of Insurance Managers, the Investment Dealers Association
and the Company Managers Association.
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No direct tax. There is no
form of direct tax in Turks and Caicos - no income tax, company tax, withholding tax,
capital gains tax or other tax on income, profits or assets. Exempted companies
automatically receive a Governor's Undertaking guaranteeing exemption from taxation for 20
years.
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No tax treaties. There
are no tax treaties with other countries.
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No exchange control. There is no restriction
on the movement of funds into or out of Turks and Caicos, and the fact that the national
currency is the US dollar further facilitates money transfers. Foreign cheques and
bank drafts are accepted for deposit, but clearance can take from three to six weeks.
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Banking. Banks are
governed by the Banking Ordinance, under which both onshore and offshore bank
licences are available. Retail banking services are provided by Barclays Bank,
Bank of Nova Scotia, and Canadian Imperial Bank of Commerce. Private
banking and asset management services are provided by several investment banks and trust
companies. Anti-money-laundering policies require full identification of bank
customers and source of funds, as well as restriction on the size of cash deposits and
withdrawals.
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Foreign investment. There is no restriction as
to ownership or sale of land in Turks and Caicos, and the property market, in
Providenciales in particular, is active. The Government is committed to the sound
development of both the tourism and finance industries, and wishes to encourage as many
international firms as possible to establish a presence. Many opportunities for new
business exist, and certain incentives such as customs duty exemptions are available for
developments determined to be beneficial to the country. The Government will generally
wish to see the participation and/or training of natives in new enterprises, and it will
normally be difficult to establish a new business in an area which Government feels is
being adequately served by existing enterprises.
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Confidentiality. The normal common law
duty of confidentiality applicable to banks is extended to all relationships between
professional and clients, and a breach of confidentiality is elevated from a civil to a
criminal wrong. Subject to certain exceptions in relation to the detection of crime,
it is an offence under the Confidential Relationships Ordinance to divulge or
attempt to divulge, or to obtain or attempt to obtain, information of a confidential
nature. Similar provisions in relation to exempted companies are also contained in
the Companies Ordinance, which also set out the procedure for the taking of
evidence in court cases where the confidentiality of information becomes an issue.
Under both statutes, the Attorney-General has a fiat as to the bringing of prosecutions.
The confidentiality provisions will not avail in cases where
there is clear prima facie evidence of criminal activity, that is to say, theft,
fraud, dealing in illegal drugs, etc. The Mutual Legal Assistance (United States
of America) Ordinance gives effect to treaty between the Governments of the United
States and of the United Kingdom which now applies in all of the British dependent
territories, including the Cayman Islands and the British Virgin Islands. Assistance
afforded to the US Government under the treaty does not extend to tax-related matters
(except in certain cases involving the unlawful proceeds of crime) or to conduct not
punishable by imprisonment of more than one year.
