The release of the “Action Plan for Fair and Efficient Corporate Taxation in the EU” by the European Union Commission on the 17th June 2015, which included 15 Caribbean countries in a “black list” of non-cooperative jurisdictions, has caused the Caribbean Association of Banks (CAB) grave concern.
Notwithstanding that the European Union has now clarified that the final decision, regarding which countries should be on the list, has not been made; it must be highlighted that the timing of this publication and its general perception as a new “black list” could have far-reaching effects on the Caribbean’s financial
services sector.
Indigenous banks in the region are currently being challenged with the threat of loss of correspondent banking relationships which are provided by international banks. An additional “black list”, based on unclear criteria, may serve to exacerbate the perception of our region as a high risk area and consequently, negatively impact the Risk Rating profile of financial institutions by correspondent banks.
The financial services industry cannot survive without correspondent banking relationships and as a result, neither can our economies.
The CAB is pleased to note the response of the Organisation for Economic Co-operation and Development (OECD) and the Global Forum on Transparency and Exchange of Information for Tax Purposes which confirms that: “the only agreeable assessment of countries as regards their cooperation is made by the Global Forum and that a number of countries identified in the EU exercise are either fully or largely compliant and have committed to AEOI (Automatic Exchange of Information), sometimes even as early adopters”
It is noteworthy that the eight CARICOM countries and five associated members which are named in the EU’s report, are all included in the OECD’s list of members who have committed to Automatic Exchange of Information.
The CAB therefore calls upon the EU to carefully review the criteria used by its member states to assess and determine the countries that are non-compliant in tax matters. Additionally, the CAB strongly recommends greater collaboration between the EU, the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes before “Black List” reports are issued.
The CAB also urges regional governments to act together to ensure that the region is represented in such key decision-making processes which can impact the growth and development of our economies.
It should be noted however that OECD released the official letter in respect of the EU Blacklisting stating the following:
” As the OECD and the Global Forum we would like to confirm that the only agreeable assessment of countries as regards their cooperation is made by the Global Forum and that a number of countries identified in the EU exercise are either fully or largely compliant and have committed to AEOI, sometimes even as early adopters. Without prejudice to countries’ sovereign positions, we are happy to confirm that these jurisdictions are cooperative and we would like to commend the tremendous progress made over the past years as well as the cooperation and integrity of the Global Forum process”
Source: http://www.oecd.org/tax/transparency/eucommissionsannouncementonnon-cooperativejurisdictionslettertoglobalforummembers.htm
Tor, thank you for informing us. This is the the most correct and diplomatic answer and I wish Roosevelt Skerrit would have pronounced likewise rather thn engage in immature rabble rousing to score cheap points.
Simplest way to avoid EU from dictating to us is to set up our own standards within caricom and the wider region ensure they are policed and enforced. Secondly, I will say again with 38 million people in the region we have a market for investment, trade, consumption, and a whole list of opportunity to have a self sustaining economy. How many teachers, policemen nurses and other workers have the ability to invest in a Caribbean stock market. So many hotels that could do public offering let west idians buy shares. That would ease dependence on social security. There would be more money circulating and staying in the region. Imagine the boost in real estate if in overcrowded Kingston people start making money and can build in other towns or other Caribbean islands. Imagine the boom in transportation if we had 10 million people traveling inter island every year. We are still sooo far behind. Unless we sacrifices in the region to empower every Caribbean citizen we will always be slaves.
The irony Shaka is that as native born Dominican you can’t even invest in the approved local projects under the so called Citizenship by Investment scheme. Even if you have a Caricom passposrt but are not an OECS citizen at the same time you can not buy property as you like and must pay government an extra 10% of the purchase price because you are officially classified as an “alien”. So much for regional unity Roosevelt Skerrit is always boasting about!
The CAB simply need to ask Roosevelt Skerrit how did Dominica got out of the list. The legal dorectors for our government is by no means the sharpest tool in the box and they understood what was required when the French held back the funds for the airport road. The government ran to parliament in rush rush manner and booya Dominica was removed from the list.
Pa machais neyais pou amwon nagais _ Kassav
I am not so interested what the CAB has to say, as far as I’m concerned that is only a limited liability, for profit company. I would really like to hear the Eastern Caribbead Central Bank’s view on this, that would have far more weight for me.
That’s not an unfair point, but it would seem best to consider as many relevant points of view as possible, and CAB’s is surely one of them.