Prime Minister of Saint Lucia, Allen M. Chastanet on Monday, November 21, 2016 signed the Convention on Mutual Administrative Assistance in Tax Matters. The Convention will enter into force in 2018 and will enable the government to automatically exchange information.
This multilateral instrument is the most comprehensive mechanism available for all forms of tax cooperation and will tackle tax evasion and tax avoidance, making it a top priority for all countries.
At the brief signing ceremony in Paris, France Prime Minister Chastanet said:
“Despite our many challenges we stand resolute, with the rest of the world, to address vital issues such as tax avoidance and evasion. Having signed the Multilateral Competent Authority Agreement (MCAA) in October 2015, we have continued to work assiduously towards the signing of this Convention and towards the development of enabling legislation. We have received assistance from the Global forum and OECD Secretariats in this regard, and indeed we are grateful. The necessary legislation has already been drafted and will be enacted in time for the due diligence process to begin in January 2017.”
The Prime Minister explained that coming off the heels of the first Foreign Account Tax Compliance Act (FATCA) reporting period, the learning curve for the implementation of the Common Reporting Standard (CRS) is envisaged to be significantly reduced.
“The task ahead is by no means an easy feat. We have apprised the stakeholders in the financial sector of the Common Reporting Standard, but there is still significant ground work to cover,” he said.
Since 2009 the G20 has consistently encouraged countries to sign the Convention which has been opened for signature from 2011. This cooperation ranges from the exchange of information to the recovery of foreign tax claims.
PM Chastanet asserted that “Saint Lucia has heeded the call of the global community with respect to the exchange of information.
“It has not always been an easy journey as there are onerous costs associated with the implementation of international standards; and at times we have had to take unpopular decisions, for the greater good. Let this signing be a testament to our continued commitment to meet globally acceptable standards on transparency and exchange of information for tax purposes.”
The Convention was developed jointly by the Organization of Economic Cooperation and Development (OECD) in 1988 and was amended by Protocol in 2010.
Caribbean Jurisdictions already participating in the Convention on Mutual Administrative Tax Matters include Barbados, Anguilla, Aruba, Belize, British Virgin Islands, and Cayman Islands among others.
Malgraysa I did a research and I notice that Antigua nor Grenada is on the list of signatories. Unless you have seen something else. Nevertheless i agree with you that Dominica should embrace the opportunity to sign the agreement but you and I know that this government is not interested in anything involving transparency. Besides an implied condition of the passport business involves tax evasion.
I did say that all the OECS countries are signatories, so that would include Antigua & Barbuda but thank you for your comments.
I would add that these measures are put into place not only to combat money laundering but also tax evasion.
That should have been ” not on the list”
Take note Rosevelt Skerritt.There is such a thing as transparency and there are standards and norms that decent,law abiding people uphold.You have operated in Dominica as a renegade,ignoring the norms and protocols used by your predecessors.You should be ashamed of yourself.Dominica is NOT your private plantation.Get with the program of Clean ,open,respectful governance.
As of 2 Nov. 2016 there are 87 signatory countries to the MCAA (Multilateral Competent Authority signatures agreement), This includes all the OECS countries with the exception of Dominica. Even the People’s Republic of China has signed on to this initiative.
This failure- or reluctance to do so by our government puts our country increasingly under the spotlight with regard, particularly to money laundering and is not helpful to our banking institutions, especially the off-shore sector for the ease of transferring funds. I can’t see why we can not present a united front on this within the OECS, if not Caricom and urge the government to remedy this situation without further delay.
see: http://www.oecd.org/ctp//exchange-of-tax-information/mcaa-signatories