The new IFSC website and corporate video were released last week (the 19th) at a gala event hosted at the Gaborone International Convention Centre (GICC). An excellent show was put together and I submit a great time was had by all.The IFSC regime in Botswana is, I understand still to benefit from the suggestions of a leading firm of London solicitors, however, even in present form, it has done great things for Botswana already.Still I am amazed that we are not the absolute first choice of regional businesses for head office setups and the like.I venture to put my opinion on the table and state that the South African exchange control regime is very stifling as it restricts SA resident firms and SA assets being owned by SA residents through an “offshore” entity.We can think or argue that we are not “offshore” by any stretch of the imagination, yet the nomenclature is used to apply to any non-resident jurisdiction, landlocked or otherwise.Along with the IFSC regime, there are now various hubs, such as the Diamond Hub and the Innovation Hub and so on which are likewise subject to beneficial regimes for investors from abroad.Botswana has to be the ideal place from which to launch operations into Africa. South Africa is simply so full of beauracracy (“red tape”), crime, corruption and banking obstacles to doing business and it has a high tax regime and restrictive exchange controls to boot.The IFSC way of thinking is truly beneficial for the country. It encourages firms to operate here without offering the services within the country, in other words, it serves to promote an inflow of money into the country.Even though the tax revenues might be low, as the low tax rates are used as a major selling point, the firms that are registered as IFSC firms are not doing direct business here and might not be here without such tax breaks in any event.Botswana benefits by means of the ancilliary spending that has to take place to support the IFSC business here.If one compares Botswana with what is known in the tax industry as “offshore financial centres” one big difference is that we do not cater for so called “brass plate” companies  where companies are registered as tax free entities in the jurisdiction and use the address of the entity for trade, but without having a physical presence in the jurisudction. The brass nameplate of the company simply being displayed on the wall of the Accounting or Legal firm where the company has it’s address.Such jurisdictions are home to many practices that are labeled as harmful by tax authorities the world over. The OECD has published a list of such jurisdictions. Companies that operate there are seen as being a little “shady” and obviously the jurisdiction where the main shareholders reside will lose income in the form of tax because of the permissive regimes of such offshore financial centres.Our regime is legitimate. An IFSC company needs a presence in Botswana to be accredited. Jobs are created, PAYE paid by staff and skills are transferred. Ours is a wholesome service offered to legitimate businesspeople needing a base in Southern Africa.Long may the IFSC regime continue, I personally hope that the term of existence of the regime be extended as has happended in other similar regimes in Europe. The longer we offer the “package” the more we will be perceived as stable and consistent and this will also aid the growth and diversification aims of the IFSC.Adv. Peter O’Halloran is head of tax at BDO in Gaborone. Contact Peter on 3902779"mailto: This e-mail address is being protected from spambots. You need JavaScript enabled to view it " This e-mail address is being protected from spambots. You need JavaScript enabled to view it