By Neil Hartnell, Tribune 242

The Bahamas is “too eagerly being led to the slaughter” over the introduction of corporate income tax, a former finance minister blasted yesterday.

James Smith, also a former Central Bank governor, told Tribune Business that the Government was “kowtowing” to the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD) without fully understanding the potential consequences.

The now-CFAL chairman warned that the Bahamas would be “shooting ourselves in the foot” by implementing a corporate income tax because this would undermine its foreign direct investment competitiveness.

He added that the EU and OECD pressure driving this nation to adopt a corporate income tax, and avoid the latter’s ‘blacklist’, was occurring at a time when most countries – including the US – were either moving away from – or reducing – this type of taxation.