Barbados’ OECD challenge
Tuesday March 22 2011 | 05:52 AM

Barbados faces a major challenge as an international tax jurisdiction.

That point was made by Christopher Sinckler, Minister of Finance and Economic Affairs, who highlighted that “there are people, countries if you will, in the international community who want to shut Barbados down as an international tax jurisdiction”.

Sinckler has discussed the situation of Barbados in terms of the OECD (Organisation for Cooperation and Development) recent Phase One assessment report by the Global Forum, which concluded that technically, the country does not currently meet the OECD standard.

“My most honest response to this latest fiasco in the OECD, led predominantly by the French and the Germans but implicitly sanctioned by others in the G20, (some of whom are among our longest standing partners), are part of a campaign to shut Barbados’ off-shore tax centre down,” he argued at the Barbados International Business Association (BIBA) luncheon yesterday at the Hilton Barbados.
 
He explained, “The constant changing of the goal post, in relation to standards on transparency and the exchange of information with respect to the OECD is as unwarranted as is the criteria and justification for the selection of Barbados from among hundreds of countries to be on a list of about 62 tax jurisdictions with the ‘potential to disrupt’ the international financial system.
“It goes against the grain of the facts and certainly of the practice which has grown up in Barbados as an open and responsible tax jurisdiction in the international community.

“That even in spite of our participation on the OECD Peer Review Committee, and as a leading advocate in the quest to promote transparency in tax matters, we could find ourselves in this position, leaves one to reflect on the real motive for the actions taken by the OECD and others”.
Sinckler remarked, “What is even more troubling is the premature and entirely unnecessary rush to judgement by the British Tax Authorities to place Barbados in the so-called Category 3 group of countries which includes none less than some of the world’s most uncooperative tax havens. And this irrespective of the fact that we were engaged in talks with the British Government to set dates for the re-negotiation of our long standing Double Taxation Treaty.
Those negotiations are set to begin in May”.

As a Government, he pointed out, “Our response to these issues has been measured and assured. Our certain conviction is that at a technical level Barbados remains a well regulated, very transparent and highly flexible jurisdiction that allows for co-operation at all levels with the international community.

“I have already composed a letter to be sent to my counterpart in the United Kingdom outlining Barbados disappointment with the stance of both the British Government and OECD on these matters.

“I have also taken the opportunity to highlight what Barbados has and continues to do to meet international obligations on tax matters while seeking a reversal of the categorisation of the country at the nearest opportunity. My understanding is that a similar styled letter is to reach the Prime Minister of Great Britain shortly from his counterpart in Barbados, Hon. Freundel Stuart.

“These will be followed up by face to face meetings between ministers from our Barbados and their opposite number from several jurisdictions including members of the G7 and the G20 in the next weeks,” he said.

Sinckler assured, “In other words while we strive to achieve the highest and most transparent levels of tax regulation the end result of this will only have meaningful outcomes if the process by which we obtain it are clear, balance and fair.

“To this extent Barbados will continue to fight this process in an integrated and comprehensive manner. Our response has been and will continue to be one which leverages all of our legislative, political, diplomatic, and strategic resources to put the country’s case and push back these most recent attempts to damage our international reputation,” he added.