D.C.’S Bahamas Blacklist Branded ‘Inconsequential’
A former financial services minister yesterday branded as “inconsequential” concerns over the District of Columbia’s (DC) pending ‘tax haven’ blacklisting of the Bahamas and 16 other Caribbean nations.
Ryan Pinder, now a senior executive at Deltec Bank & Trust, was responding to concerns raised by Opposition finance spokesman, K Peter Turnquest, over the DC Budget Support Act which, as it covers Washington D. C, has to be approved by the US federal Congress.
That Bill lists 39 nations and territories, of which 17 are in the Caribbean, as ‘tax havens’ with no effective or a nominal tax on income; laws and practices that prevent the exchange of tax information with other governments; and a lack of transparency.
Mr Pinder, though, questioned how many DC-based businesses are doing business in the Bahamas.
“This is inconsequential,” he said. “There are much more significant international initiatives that the Government of the Bahamas should be focused on.
“And they are focused on them and positioning the Bahamas the best it can be positioned and better than our competitors.”
Hope Strachan, minister of financial services, told Tribune Business: “It is my Ministry’s position that given the Bahamas’ recent compliance with its FATCA obligations and the continued efforts of our jurisdiction to comply with international tax obligations, as well as anti-money laundering and the thwarting of financial crime efforts, that we continually reaffirm that we are a reputable jurisdiction with an effective legislative, regulatory and operational regime and we remain open for business.”
She added: “The Ministry of Foreign Affairs is collaborating with CARICOM member states to respond collectively on this issue, and the Ministry of Finance has sent a letter to the IRS reaffirming our position as a compliant country, particularly with regard to FATCA.
“We will continue to press this matter on a federal level with the United States, as we are of the view that the Bahamas should not be on a tax haven list with the District of Columbia, as we continue to cooperate and comply with US ‘stop tax haven abuse;’ efforts.”
Anguilla, Antigua and Barbuda, Aruba, the Bahamas, Barbados, Belize, the British Virgin Islands, Cayman Islands, Dominica, Grenada, Montserrat, the islands formerly constituting the Netherlands Antilles, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, the Turks and Caicos Islands and the US Virgin Islands are listed.
