BAHAMAS Law and Practice Contributed by: Sean Moree KC, Vanessa Smith and Erin Hill, McKinney, Bancroft & Hughes
cial account information, and has implemented FAT - CA through a Model 1 intergovernmental agreement with the United States. The Bahamas also maintains a statutory beneficial ownership regime through its Beneficial Ownership Secure Search System (BOSS). This is not a general public register: beneficial owner - ship information is maintained securely and is acces - sible to competent authorities and other authorised bodies in accordance with the law. The Bahamas has also strengthened its AML/CFT framework, requiring regulated institutions to identify beneficial owners and report suspicious transactions. For private client planning, the practical effect is that The Bahamas offers tax neutrality rather than tax secrecy. Clients cannot use Bahamian trusts, founda - tions or companies to conceal assets or avoid report - ing obligations in their home jurisdictions, and struc - tures must be properly classified and reported under the CRS, FATCA and applicable foreign tax laws. At the same time, the non-public nature of the beneficial ownership system preserves legitimate privacy from the general public, while allowing access by tax, regu - latory and law enforcement authorities where required. Planning therefore focuses on legitimate objectives such as succession, asset protection, governance, tax efficiency and privacy, with careful attention to the client’s tax residence and international reporting obligations. 2. Succession 2.1 Cultural Considerations in Succession Planning In The Bahamas, there are many family-owned and operated businesses that involve individuals from multiple generations of the family. This ensures that the source of the family’s wealth is maintained and that there is a transition of knowledge from one gen - eration to the next. 2.2 International Planning Where succession planning in The Bahamas involves assets, businesses and/or family members located in various jurisdictions, it is of paramount importance for the legal advisers in the relevant jurisdictions to work together to understand the various tax laws and their
potential impact on the proposed succession plan. A successful succession planning process should involve full disclosure by the client to the advisers of the assets, individuals, entities, etc, involved. Options that may minimise or insulate family members from the application of tax laws in the jurisdiction of another family member include the settling of multiple trusts or the creation of foundations. 2.3 Forced Heirship Laws There are no forced heirship laws in The Bahamas. 2.4 Marital Property In The Bahamas, all property acquired during the mar - riage is deemed to be matrimonial property. However, the courts will be guided by certain legislation and other factors when determining whether both par - ties derive the same interest in matrimonial property. These factors include: • the income, earning capacity, property and other financial resources that each of the parties to the marriage has or is likely to have in the foreseeable future; • the financial needs, obligations and responsibilities that each of the parties to the marriage has or is likely to have in the foreseeable future; • the standard of living enjoyed by the family before the breakdown of the marriage; • the age of each party to the marriage and the dura - tion of the marriage; • any physical or mental disability of either of the parties to the marriage; and • the contribution made by each of the parties to the welfare of the family, including any contribution made by looking after the home or caring for the family. There is no strict formula when considering the inter - est each party enjoys in matrimonial property, given the multiplicity of factors to be considered. It may be possible for one spouse to transfer matrimo - nial property without the consent of the other spouse, particularly where the property is a chattel or is owned solely in the name of one spouse.
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