Business

Barbados also denies being blacklisted by OECD

Friday, October 19, 2018

Print this page Email A Friend!


BRIDGETOWN, Barbados (CMC) — The Barbados government Wednesday said it has never had a Citizenship by Investment Programme (CIP) as Bridgetown responded to a statement issued by the Paris-based Organization for Economic Cooperation and Development's (OECD) linking several Caribbean countries to the initiative.

International Business and Industry Minister, Ronald Toppin said the Mia Mottley administration was aware of the statement issued on Tuesday relative to the abuse in some instances of the Common Reporting Standard (CRS) where individuals can exploit citizenship by investment programmes.

“At the outset, it must be emphasised that Barbados has never had, and does not have, a citizenship by investment programme.

“However, among several other countries, Barbados High Net Worth Individual (HNWI) Special Entry Permit (SEP) regime was identified as one which poses a high-risk to the integrity of the CRS. This is not a “blacklist”, although some media establishments have chosen to headline their articles on the issue as such,” Toppin said.

He said that the government, which came to power in May this year “forcefully rejects any and all such news reports which state that Barbados has been blacklisted by the OECD.

“These reports are false and erroneous, but can, unfortunately, have deleterious effects on our reputation.

The OECD report simply provides practical guidance to financial institutions on how to undertake enhanced due diligence on clients that are citizens or residents of the countries with Citizenship By Investment (CBI) or Residence By Investment (RBI) programmes so as to prevent cases of Common Reporting Standard (CRS) avoidance and tax evasion,” Toppin noted.

He said that a Barbados delegation that is now attending the OECD Forum on Harmful Tax Practices (FHTP), Wednesday engaged the OECD officials that published the report.

“The Ministry was assured that the characterisation of the list of jurisdictions as a “blacklist” is completely inaccurate. The Barbados delegation was also informed that a statement of clarification will be forthcoming from the OECD very shortly.

“Barbados is, therefore, under no obligation to take any measures to change its High Net Worth Individual Special Entry Permit regime,” Toppin said, adding that Barbados is a member of the OECD's Global Forum on Transparency and Exchange of Information and has ratified the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

In his statement, Toppin said that the island had received positive reviews at the Forum and that the delegation had reported the positive outcomes under Action 5 of the Plan on Base Erosion and Profit Shifting (BEPS).

The OECD has identified 15 actions to address BEPS in a comprehensive manner and the Action 5 Report is one of the four BEPS minimum standards.

Toppin said that the director of International Business had updated the Forum on Barbados' direction with respect to proposed amendments to its legislative regime.

He said the FHTP Secretariat accepted the proposals by the Barbados team and urged Barbados to finalize the amendments. Barbados will report again in January 2019.

“These positive outcomes are in line with Barbados' expectations and our engagement with the FHTP is testimony to Government's continuing commitment to the adherence of international standards and tax rules that promote transparency and fairness in global trade and commerce for individuals and businesses alike.”

ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT