BIBA response to 2009 Budget
Thursday May 21 2009 | 05:13 PM

The Barbados International Business Association (BIBA) welcomes the new provisions relating to international business set out in the Financial Statement and Budgetary Proposals (“the Budget), delivered by Prime Minister and Minister of Finance, the Honourable David Thompson, on Monday.

BIBA is encouraged to see that Prime Minister Thompson’s second Budget has clearly set out direct initiatives with the intention of stimulating further growth in the international business sector. The steady decline of new entrants into the sector over the past year has been of some concern and the association is pleased to see the Government implementing recommendations made by the sector to enhance competitiveness and make Barbados a more attractive jurisdiction for multinational companies.

The budget includes proposed amendments to the Property Transfer Act and Stamp Duty Act as it relates to holding companies; and to the International Trusts Act as it relates to private trust companies. President of BIBA, Lisl Lewis expressed pleasure that the Financial Services Commission was scheduled to come on stream next year, describing it as an excellent develpment for Barbados. She noted that all the initiatives were welcome, as they would contribute much to the further development of those types of businesses here.

However, the BIBA President is gravely concerned about the mounting challenges to Barbados’ international business sector as Canada’s government begins its active pursuit of tax information exchange agreements (TIEA) with other offshore jurisdictions in the region, some of whom have zero corporation tax regimes. Ms. Lewis suggested that Government should move swiftly to begin negotiations with Canada on a TIEA as soon as possible. While Barbados has enjoyed a comprehensive tax treaty arrangement with Canada for over two decades, a TIEA with Canada for the exchange of information on international business companies, international societies with restricted liabilities, and other entities currently excluded from the treaty benefits, would be in Barbados’s interest. This would also allow Canadian insurance entities to establish as exempt insurance companies and enjoy a zero tax regime.

The international business sector employs more than 4,000 Barbadians and BIBA’s members are pleased to support Government in its employment stabilization efforts for as long as the beneficial nature of doing business in Barbados is maintained. Barbados has the potential to reach the heights of Singapore or Hong Kong as a state-of-the-art international business jurisdiction and it is therefore imperative for Government to not only fulfill the pledges made in Prime Minister Thompson’s budget in a speedy fashion, but also to expedite the rest of the measures called for in the short to medium term plan devised by public and private stakeholders in the international business sector earlier this year.