Javascript Menu by Deluxe-Menu.com

SKNBuzz Radio - Strictly Local Music Toon Center
My Account | Contact Us  

Our Partner For Official online store of the Phoenix Suns Jerseys

 Home  >  Headlines  >  NEWS
Posted: Wednesday 15 April, 2009 at 8:50 AM

SKN ‘unjustly’ called illegal tax haven…

Director Financial Services Fidella Clarke and Minister of Finance Hon. Dr. Timothy Harris condemned the ‘grey-listing’ of the Federation by the OECD
By: VonDez Phipps, SKNVibes

    BASSETERRE, St. Kitts – THE Federation has been labelled as an illegal tax haven by the Paris-based Organization for Economic Co-operation and Development (OECD), a move which Minister of Finance Dr. Hon. Timothy Harris has called “unjust”.

     

    Following the April 2 G20 Summit in London, global leaders agreed to introduce sanctions on “secretive” tax havens around the world, resulting in the OECD publishing a list of 30 countries that have committed to their tax standard, but have not substantially implemented it.

     

    St. Kitts-Nevis is named among the non-compliant countries on the list, while only two Caribbean islands, Barbados and the US Virgin Islands, are seen by the OECD as substantially implementing the standards.

     

    Harris informed that the Federal government is displeased the nation is on the list, adding that such decisions have been continually made with little to no input from the region.

     

    “In a sense we have never been part of the real decision-making. This goes back to the fight we had with the OECD about harmful tax jurisdictions and this notion of tax havens. It was always coming externally, where powerful entities and people are saying that these developing countries are encouraging [tax] evasion and we have to do something,” he said.

     

    The OECD tax standard requires countries to submit information upon request regarding all tax matters and the enforcement of domestic tax law. While the information submitted can go against domestic tax interest requirements or bank secrecy laws, it does provide for extensive safeguards to protect the confidentiality of the exchanged information.

     

    Harris said that because of power and size, larger economies may have more input in such decision-making. He further indicated that the key response for small, vulnerable states is to increase lobbying at critical tax jurisdictions to outline the detriment such decisions have on developing states.

     

    “Because they have the clout and the wherewithal, their views in the end almost became directives, and we must use the opportunity of international fora in which we participate to say that this is unjust! This does not create international economic justice!

     

    “Some of how you fight that is to be really proactive in lobbying, and maybe this is one of the mechanisms [to be considered] going forward. We are trying to cope and do what’s right at the same time that we argue that this is wrong,” Harris stressed.

     

    According to Director of Financial Services Fidella Clarke, international policy-making has “never truly been a level playing field”. She indicated, however, that representation in the Caribbean Financial Action Taskforce and the upcoming Fifth Summit of the Americas may increase lobbying opportunities for the twin-island state.

     

    “One must bear in mind that, at present, St. Kitts-Nevis is the Chair of the Caribbean Financial Action Taskforce, in which we would be able to have significant input into the legislation in the international fora with regards to offshore tax centres.

     

    “Also, with regards to the upcoming Fifth Summit of the Americas,...the Federation’s delegation would be able to have an input into any possible legislation that would be coming out as a result of the OECD meetings,” Clarke said.

     

    The countries of Costa Rica, Malaysia, the Philippines and Uruguay were completely blacklisted by the OECD, while 40 other countries have been listed as substantially compliant.

     

    Grey-listed countries, such as St. Kitts-Nevis, would require legislative changes and the negotiation of specific bilateral agreements in order to make their way onto the list of “compliant” countries.

     

     

     

Copyright © 2024 SKNVibes, Inc. All rights reserved.
Privacy Policy   Terms of Service