A 15-strong delegation of Bermuda industry, government and regulator representatives is set take part in a Canada roadshow targeting top-level executives and touting the corporate benefits of setting up a captive insurance company in Bermuda.
Led by Bermuda's economic development minister Grant Gibbons and organised by the Business Development Agency (BDA), the delegation will visit Toronto and Calgary on 5 and 6 May to promote the Island's captive insurance industry—as well as its many advantages to Canadian retailers looking to expand into international markets via an e-tail strategy.
Bermuda has been of increasing interest to Canadian corporations following the July 2011 Canada-Bermuda Tax Information and Exchange Agreement (TIEA).
The bilateral agreement puts Bermuda on equal tax footing with jurisdictions that hold tax treaties with Canada.
The TIEA also allows Bermuda subsidiaries of certain Canadian corporations with international operations to be eligible for Canadian tax benefits, including the tax-free repatriation of certain dividends to Canada.
"The TIEA between our countries makes it easy and beneficial for Canada and Bermuda to do business together," said BDA CEO Ross Webber.
"The BDA, with government, [Bermuda Monetary Authority], and our industry partners, is working to educate the Canadian market about the process and benefits of setting up a Bermuda structure as part of their overall international planning.”
Webber added: "We are anticipating that a growth in interest from Canada in establishing a Bermuda presence will result in manned physical operations—and jobs for Bermudians.”
The first CFO Forum, to be held at Toronto's Trump International Hotel, will feature opening remarks by Gibbons, Webber, and Michael Horgan, a former deputy minister of finance for the Canadian government.
Separate sessions following will address the benefits of establishing both captive insurance companies and e-commerce entities in Bermuda.
The captive session will explain the basics of captive insurance, also citing several actual case studies, while the e-commerce sessions will explain how Canadian retailers who sell their goods and services online are able to utilise the advantages of the Canada-Bermuda TIEA in a new framework for reaching international customers.
"Bermuda's world-class IT infrastructure can be harnessed by Canadian retailers looking to target international customers," said Stafford Lowe, a technology industry consultant for the BDA.
"Bermuda's advanced Internet connectivity offers retailers a strategic base from which to develop new markets via the power of e-commerce."
