Turks and Caicos Geography
The Turks and Caicos Islands consist of two
island groups in the Caribbean Sea south east
of the Bahamas and north of Haiti with an
area of 430 square kilometres. Eight of the
fourteen islands are inhabited, Grand Turk,
the seat of government, and Salt Kay being
the most populous, with Providenciales the
centre of tourist development.
Temperatures
range from 60 to 90 degrees Fahrenheit and
rainfall averages only 21 inches annually
so that drinking water is scarce. Hurricanes
are common. The islands are 5 hours behind
GMT. The capital is Cockburn Town.
There
are three international airports. Miami is
the main gateway to the Islands, with American
Airlines operating a daily service from the
city, in addition to a weekend service from
New York's JFK. Delta, Spirit Air and US Airways
operate more infrequent services from Atlanta,
Fort Lauderdale and Charlotte, respectively.
British Airways operates a Sundays only flight
from London. The national airline provides
regular flights to other Caribbean destinations.
There are also flights from, the Bahamas,
Haiti and the Dominican republic.
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Turks and Caicos Population, Language and Culture
The
islands were discovered in the 15th century
by Juan Ponce de Leon, a Spanish explorer, but
remained uninhabited until 1768 when Bermudians
arrived and established a salt panning industry.
From 1874 to 1959 the islands were a Jamaican
dependency. In 1962 when Jamaica became independent
the islands became a British crown colony.
The
official and spoken language is English. In
2010 the population was estimated at 45,000
and is largely of black origin. The indigenous
population are known as "Belongers".
The culture is Afro-Caribbean. In recent years
there has been a substantial amount of immigration
from other, less successful parts of the Caribbean.
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Turks and Caicos Government
The
Turks and Caicos were historically linked to
Jamaica and the Bahamas. When Jamaica achieved
independence in 1962 the islands shared a governor
with the Bahamas .When the Bahamas became independent
in 1973 the islands became a British crown colony
with their own Governor. The islands are now
a self-governing dependent territory of the
United Kingdom. The Queen is the head of state
and appoints and is represented by a Governor.
The constitution of 1975 provided for a ministerial
form of Government with substantial internal
autonomy. The constitution of 1988 consolidated
internal self-rule. Further changes to the constitution
in 2006 assigned to Ministers of Government
responsibility for the conduct of business in
the House of Assembly in respect to: External
Affairs; Defence and Internal Security, including
the Police Force; and the Regulation of International
Financial Services. The new Constitution also
makes provision for the establishment of an
Advisory National Security Council. This panel
consists of: the Governor, the Premier, the
Attorney General, the Deputy Premier, and the
Minister of Immigration. The purpose of the
Council is to make recommendations to the Governor
on matters relating to defence, external affairs,
the regulation of international financial services,
internal security. The Council is also equipped
to make recommendations on the exercise of the
Governor's functions during a period of public
emergency.
Legislative
and executive powers are divided between the
legislative council, the executive council and
the Governor. The legislative council consists
of 21 seats of which 15 are popularly elected;
members serve four-year terms. The Chief Minister
is selected by a majority of the elected members
of the legislative council. The executive council
functions as a cabinet. It consists of the Chief
Minister, six ministers (who are appointed from
among the elected members by the Governor on
the advice of the Chief Minister) the Chief
Secretary, the Attorney General, and the Governor
who presides.
Elections
in the fall of 2007 saw the PNP retain power,
which they had taken from the People's Democratic
Movement in 2003, after it had governed for
the previous eight years.
The
Turks and Caicos Islands have a sound legal
system relevant to the needs of the jurisdiction.
Laws comprise locally enacted statutes (known
as Ordinances), English statutes specifically
extended to the islands, and where applicable,
English common law. The court system consists
of a Magistrates Court and a Supreme Court.
Practice and procedure are based on English
law. Appeal lies to the Court of Appeal and
ultimate appeal is to the Privy Council sitting
in London.
The
Turks and Caicos Islands are normally politically
and economically stable and there does not appear
to be any movement agitating for independence
from Britain, although Chief Minister Michael
Misick said in April 2006 that independence
is a long-term goal of his Progressive
National Party. However, allegations of corruption
in the Government in 2009 led the UK to consider
re-assuming direct control of the islands. An
interim government is currently charged with
the day-to-day running of the local administration,
with strong input from London.
In August 2009,
the ministerial government was suspended for
an initial period of up to two years, with a
Special Investigation and Prosecution team set
up to investigate corruption allegations. In
the financial crisis that unfolded, a support
package with commercial lenders was brought
in, and a short term loan was facilitated by
the UK government to cover unavoidable public
service commitments.
As part of a constitutional
and electoral reform process announced in 2009,
a draft constitution containing "measures
to embed good governance and sound public financial
management firmly in the Turks and Caicos Islands"
was released on March 8, 2011. This draft takes
as its base the text of the suspended 2006 constitution,
and reflects the recommendations of both the
Commission of Inquiry appointed to investigate
the situation, and those of the constitutional
and electoral reform adviser Kate Sullivan,
whose final report was also published.
The
constitution aims to meet public demand for
better public governance by establishing a binding
system of governance principles to improve accountability.
It will provide for new budget and audit arrangements,
and contain a new section to provide more medium
and long term information on the finances of
the government and the territory. It also aims
to allow more public and political engagement
in the process of government budgeting, and
ensure that government borrowing remains within
prudent and transparent parameters.
In
addition, the government would be required to
make a six monthly report on the state of the
public finances and economy, with taxation explicitly
required to have prior approval from the Assembly,
and all concessions from taxation to be published
every six months.
A
period of consultation on the draft constitution
concluded on May 3, 2011.
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Turks and Caicos Economy and Currency
The three pillars of the economy are tourism,
fishing and financial services.
Pristine
beaches, excellent diving and the islands' location
just 90 minutes flying time from Miami have
helped the development of the tourist industry.
Numbers doubled to over 100,000 between 1990
and 1997 with Americans accounting for more
than half of these visitors. The islands appear
well positioned for further growth of this sector
of the economy with generous incentives offered
by the Government through its development agency
TCInvest (see below). Tourist arrivals fell
by 6% in 2002 in the wake of 9/11, but had recovered
somewhat by 2003.
There
is a small fishing industry based around the
export of lobsters and cray fish to the United
States.
The
introduction of the Companies Ordinance 1981
is widely credited with having kick-started
the development of the financial services sector.
In 1989 the industry took on a more formal structure
with the creation of the Financial Services
Commission designed to regulate and supervise
all financial services activities. The Commission
is headed up by the Financial Services Commissioner
who is appointed by and answerable to the British
Governor. Representing 7% of the economy, the
offshore financial services sector ranks behind
tourism as the main source of income in the
Turks and Caicos Islands. However, the sector
remains one of the key elements of the islands
economy providing employment in the public and
private sectors.
Due
to lack of employment opportunities in the 1960s
and 1970s many citizens (known locally as "Belongers")
emigrated to the United States and Bahamas in
search of work. However due to the growth in
tourism and financial services the situation
has now reversed itself with "Belongers"
returning and immigrants from Haiti and the
Dominican Republic providing most of the unskilled
labour.
Most
food and nearly all capital and consumption
goods are imported. Since there are virtually
no taxes payable in the islands the major sources
of Government revenue include fees from offshore
financial services and customs receipts on imported
goods.
The
Islands' currency is the US dollar.
The
Turks and Caicos Islands recent economic success
was evidenced by the fact that the United Kingdom
stopped providing grant aid for a number of
years. However, allegations of corruption within
the local government, combined with the impact
of the financial crisis and a narrow revenue
base have conspired to create a fiscal crisis,
and the UK government stepped in to provide
USD260m worth of financial support to the island
in 2011 in the form of loans and a credit facility.
A review of the country's fiscal regime is also
leading to the introduction of new taxes. The
authorities are aiming to balance the books
by 2013.
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Turks and Caicos Entry and Residence
The Government is keen to encourage inward investment
and this is reflected in its immigration policy.
The immigration authorities welcome qualified
persons wishing to establish business enterprises
or undertake employment in the islands and as
such it is relatively easy to obtain a work
permit. However the policy of Government is
to promote the employment of local islanders
as much as possible and to this end a list of
reserved activities has been published to ensure
the hiring of Belongers.
The
right to reside and work in the islands can
be obtained by:
- Applying
for an annual work permit under the Immigration
Ordinance 1992;
- Applying
for permanent residence certificate under
the Immigration Ordinance 1992;
- Applying
for naturalisation under the British Nationality
Act 1982
Work
permits are granted for up to 3 years at a time
and are given to those applicants who can establish
that they meet the Government's good health
and good character requirements, are capable
of financially maintaining themselves and their
dependants throughout the duration of their
stay on the Islands and who have available for
their use a house or apartment. Annual fees
vary depending on occupation.
A
Permanent Residence Certificate remains valid
for the lifetime of the holder, but it can be
revoked in certain circumstances. To obtain
a certificate an applicant must satisfy the
Government he intends to make the Turks and
Caicos Islands his principal home, that he is
of good character & good health and that
he has invested or will invest more than $250,000
in a business or home on Providenciales ($125,000
on one of the other islands). A skilled worker
who has held a work permit for not less than
5 years can obtain a certificate based on lower
investment levels ($100,000 and $75,000).
To
apply for citizenship one must have held a Permanent
Residence Certificate for at least 12 months
and have been resident in the Islands for at
least 5 years. It is unlikely such status will
be granted to large numbers of persons primarily
because of the very real concerns of the indigenous
population that they may become a minority in
their own country.
In
May 2010, The Turks and Caicos Islands government
has announced that it has relaxed immigration
rules on short-term visitors to the island,
the Ministry of Border
Control announced that the maximum period that
businesspeople and tourists can visit the island
without seeking an extension to stay was being
extended from 30 days to 90 days.
The change in rules
was made in an amendment to the Immigration
Ordinance, which has been altered to allow immigration
officers to allow entry to visitors to "enter
and remain for a period not exceeding 90 days."
Effective since May 1, 2010, the amendment will
allow immigration officers to determine the
length of a visitor’s stay, but the use
of a 90 day tenure will be at the discretion
of the government. Strict measures will still
be in place to deal with any abuse, the Ministry
said.
On making the announcement,
Clara Gardiner, Permanent Secretary at the Ministry
of Border Control and Labour, said: "As
we look to bring on economic recovery, it is
key that we make it clear that the Turks and
Caicos Islands welcome genuine visitors and
investors to the islands. Our new 90-day policy
is intended to reflect that.”
She added: "For
instance, a retired couple from abroad who own
property in the islands, who wish to visit for
a long vacation, or an investor supervising
the setting up [of] a new business, should not
be required to reduce their stay, nor apply
for multiple extensions. Such visitors are not
competing in the local job market, nor do they
place a burden on public services, but they
do contribute significantly to the local economy
and give generously to local charities and community
events.
Gardiner
concluded: "People like these should be
welcomed to these shores. The islands should
be encouraging them to plan for an extended
hassle-free stay."
In
April 2011, the interim government announced
that a series of changes are to be made to the
system of work permit fees, which the government
says have not been increased since 2001, and
are complex and can lead to error and manipulation.
The government is investigating a possible move
to a percentage-based fee system, but, in the
short-term, proposes to radically simplify the
employment categories under which permits are
issued, and raise fees by September 1, 2011.
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Turks and Caicos Business Environment
The
depth of the professional infrastructure servicing
the financial services industry is impressive.
A wealth of talented Canadian and English barristers
are present in addition to lawyers licensed
in Hong Kong, USA, the Bahamas and the Cayman
Islands. A number of major accountancy firms
also have a presence. Telecommunications are
excellent.
Under
the Business Licensing Ordinance 1983 all Turks
and Caicos businesses, whether incorporated
or not, require licenses. License fees vary
quite widely according to the circumstances,
and range from nil (agriculture and apartment
rental not exceeding four units) to as high
as $10,000 per annum (hotel accommodation with
100 bedrooms or more). Fee levels are set annually
in the Islands' budget.
An
individual who wishes to work on his own account
and who does not have a Permanent Residence
Certificate must in addition to obtaining an
annual work permit obtain a business licence
under the Business Licensing Ordinance. Business
licences will usually be granted to individuals
who demonstrate the necessary qualifications
and credentials provided that the business concerned
is not in a category restricted to the indigenous
population. Examples of restricted business
sectors include accountancy, apartment rentals
and management, real estate agency, architecture
and contracting, among other categories. Business
licences are normally indefinite in duration.
Banking
confidentiality and secrecy are governed by
the Confidential Relationships Ordinance 1979
which provides for penalties and terms of imprisonment
for professionals, including government officials,
who make unauthorised disclosure of confidential
information. The Companies Ordinance 1981 contains
similar provisions in relation to exempted companies.
Additionally the common law also imposes civil
liability for breaches of professional privilege.
The
duty to maintain confidentiality does not apply
where it conflicts with the provisions of the
Mutual Legal Assistance (USA) Ordinance 1991
which was passed to give effect to the treaty
made between the United States and the United
Kingdom to give assistance in criminal matters.
However, this treaty does not extend to fiscal
crime; the Islands have not entered into any
double taxation treaties and there is therefore
no scope for the local authorities to co-operate
with requests by foreign investigators for assistance
in investigating tax evasion.
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Turks and Caicos Investment Incentive Schemes
In 1994 the government set up the Turks and
Caicos Investment Agency ("TCInvest")
to encourage sustainable economic growth by
attracting new offshore investment and by encouraging
entrepreneurial spirit among the local population.
The
Government has streamlined the business licensing
system, designed a responsive immigration policy,
extended a variety of duty exemptions and agreed
in specified circumstances to provide access
to crown land under long term leases at reasonable
rents. TCInvest also provides debt financing
to suitable Belonger controlled projects, identifies
and promotes investment opportunities on the
Islands, provides advice and assistance to the
Government on investment policies and negotiates
joint ventures and agreements with investors
wishing to access the Government's investment
incentives.
In
order to encourage the development of tourist
and leisure facilities the Government may on
the recommendation of TC Invest grant both long
term concessionary leases or conditional purchase
leases over government land together with a
variety of customs duty exemptions lasting 35
years.
In
1972 the islands enacted the Encouragement of
Development Ordinance whereby approved development
projects are granted relief from import duties
and possible future taxes for a period of up
to 35 years. The benefits under this Ordinance
may apply to expansion as well as to the original
establishment of development enterprises. Similar
incentives apply to developments carried out
by locals or foreigners on Crown land provided
the developments are not for private residences.
In such cases Crown lands can be acquired on
long term concessionaire leases or in special
circumstances on a conditional purchase lease
provided the developer completes the agreed
improvements and meets other conditions within
the option period.
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