IN WELCOME NEWS, the CARICOM Community grouping of countries has taken strong objection to the latest decision of the European Union to blacklist 13 member states of the regional grouping on the false basis that those named countries do not cooperate on tax law enforcement with countries of the European Union.
We applaud the CARICOM grouping on this firm and united rebuttal of what has been an heretical statement delivered on the basis of information which may not only be dated, but worse, may be classified as false and misleading.
This region has shaken off the shackles of deprivation and the vestiges of oppressive colonialism and has a reputation for fostering the democratic ideals which have formed the basis of our efforts to improve the lot of our people and their children.
Our reliance has been placed on tourism, and the invisible exports of the financial services centre to maintain viable standards of living for the inhabitants of these lands.
We have done a remarkable job in the 60 years or so since independence came to these parts, and in developing the offshore sector we face competition from other offshore sectors the world over, but particularly in Europe.
That we have done well in this area has attracted the attention of the metropolitan countries mainly because many transactions are carried out by companies often headquartered in the very capitals from which we receive objection to the facilities we offer these companies.
We have had to contend with increasingly stringent standards of transparency and exchange of information to avoid the blacklisting of our islands and we have satisfied those regulatory standards with our hands on the table facing up.
Suspicious
It is irritatingly suspicious that as we have cleared the latest regulatory hurdles and put in place the required exchange of information treaties that this latest salvo should be fired across our bows.
The success of our financial services means food on the table for many of our citizens who enjoy the fruits of our economies and therefore we take a very serious attitude to any announcement which suggests that we have been blacklisted for not compliance with regulations.
Our position on this matter is clear. Given that the region has complied in the main with the tax exchange information, those seeking to backlist Caribbean countries have the grave responsibility to be absolutely sure before rushing into print and making damning accusations which can have severe consequences for the continued viability of our offshore financial centres.
We urge those in charge of the development of these regional financial centres to maintain eternal vigilance. We must keep on top of the latest information in order to ensure that not only do we offer the best vehicles needed by the industry but that our reputation is maintained and enhanced.
The last word on this vexed matter should naturally come from the OECD, which is the authoritative source on these matters. That organisation declared forthrightly that most of the countries listed by the European Union were compliant in the area of tax information sharing and what is more, it went on to say that “there is nothing more that they can do in order to be considered as tax compliant”.