Packwood: Bermuda is ally, not tax haven

By added on 15/09/2014

“As a small island nation, with a vibrant insurance sector and relatively low tax rates, Bermuda can be a target for political leaders and pundits in the United States. But history shows that our nations are natural friends, allies and economic partners,” Cheryl Packwood noted in an article for The Hill, reports Bernews.

Ms Packwood — the Director of the Bermuda Government’s Washington, DC Office — noted that “during the Cold War and the current war on terror, Bermuda provided the US with bases for Air Force refuelling and aircraft searching for enemy submarines in the Atlantic.”

She continued on to say, “Over the last 12 years alone, Bermuda’s insurers and reinsurers have contributed an estimated US$35 billion in catastrophe claims payments to their US clients.

“These payments have included US$2.5 billion after the destruction of the World Trade Center, US$17 billion for Hurricane Katrina, US$2 billion following tornado outbreaks from 2010 to 2012 and an estimated US$3 billion in reported losses by Bermuda’s reinsurers for Hurricane Sandy.”

Ms Packwood concluded her article by saying, “The next time American politicians and the news media lump Bermuda together with “tax havens,” remember the facts: Bermuda is committed to international cooperation on matters from taxation and regulation to hemispheric defense. An alliance forged in the flames of international conflict should not be sacrificed on the altar of domestic political expediency.”