There are a number of outstanding double taxation treaties (DTAs) that once ratified, could improve Barbados’ competitiveness as an international financial centre, according to Ben Arrindell, director of Cidel Bank & Trust Inc.
He said it was important that the other countries with which Barbados entered into negotiation with for DTAs move with haste to ratify them.
His call came last Tuesday at the Consular Corps of Barbados luncheon meeting at the Yacht Club Barbados. Speaking on the topic The Roll of Barbados Double Taxation Treaties and Investment, Arrindell said: “We have something in the region of between 20 and 30 treaties that are in various stages of negotiation.”
And while Barbados was already considered by the international community as a competitive jurisdiction for investment options, Arrindell told BARBADOS BUSINESS AUTHORITY that if the other countries would move to ratify those treaties it could further improve the island’s competitiveness.
“There is an advantage because the more double taxation treaties we have the more competitive we will become. So if you look for example, some of our competitors on who we model ourselves they have far more treaties than we do . . . because they recognize that to compete in the global environment as an international financial sector they have to have those double taxation agreements,” he said.
“So it is important to get those treaties ratified and in place as soon as possible and pursue treaties with strategic countries that we are not currently negotiating with.”
Arrindell recommended Colombia, Peru and Central African countries as “strategic” countries with which Barbados could negotiate taxation treaties.
Barbados currently has about 24 international DTAs and about ten within CARICOM.
Protection
Arrindell said: “We also have nine bilateral investment protection treaties. The importance of these treaties is that it provides protection for the investments, in the event for example, government’s expropriation. The bilateral investment protection treaty is also an important strategy in facilitating trade and investment.”
He explained that the outstanding DTAs were no fault of Barbados’ but of the other countries with which the negotiations have been entered. Arrindell said there could be a number of factors contributing to the delay, citing “political reasons” as one.
“The other part of it is that once you have signed it has to be ratified. In Barbados our process is simple . . . . In a number of other countries it has to go through parliament and subjected to debate and in terms of the parliamentary legislative programme DTAs don’t have great priority so they have to be slotted in when they can be slotted in.” (MM)
