Gov’t to spend $22m on IFC consultants
Government is spending US$250,000 ($22.2 million) to hire consultants to establish an International Financial Centre (IFC) despite concerns raised by world powers about offshore tax havens.
The National Contracts Commission has chosen the consultants Baker and McKenzie to oversee the IFC implementation but this is subject to cabinet approval. The details were released just days ago by the Office of Contractor General. Jamaica Trade and Invest, the facilitating government agency was not prepared to disclose details up to print.
Some $100 million was allocated in the 2009/10 budget for the promulgation of the IFC this year. Cabinet in June approved the establishment of a statutory company to oversee the development of the IFC.
Finance Minister Audley Shaw in July said that Government would forge ahead with plans to establish an IFC despite concerns raised by G20 countries over offshore financial centres used as tax havens and which did not go far enough in fighting money laundering.
G20 countries agreed to set a standard for financial centres with high-quality anti-money laundering controls as countries that have at least 12 tax information exchange agreements (TIEAs).
TIEAs help disclose assets that have not been reported in home countries and also enable tax authorities to access information about persons who are seeking to evade payment of tax.
Information that would typically be relevant in such investigations include information regarding bank accounts and beneficial ownership of companies or trusts established in non-Organisation for Economic Corporation and Development jurisdictions.
The finance minister, however, declared that the establishment of the proposed IFC did not equate with creating an offshore banking industry or a tax haven.
He said that the concept of the IFC represented a pragmatic mechanism to unlock Jamaica’s potential as a player in the global financial market. The Government intends to provide services for accountants, lawyers, financial advisors, information technology specialists, and clerical workers in the IFC.
