Barbados MP Donville Inniss has praised the Commonwealth Secretariat for its leadership on key issues affecting the Caribbean such as international tax and financial regulations.
Barbados MP Donville Inniss has praised the Commonwealth Secretariat for its leadership on key issues affecting the Caribbean such as international tax and financial regulations.
The Minister of Industry, International Business, Commerce and Small Business Development, called on the Secretary-General prior to a Commonwealth International Tax Roundtable to consider a response to recent international tax developments. This included those raised by the Panama Papers leak of documents in April, which sparked concerns about wealthy individuals and corporations using overseas financial facilities to avoid or evade tax.
The two-day roundtable was open to countries that host International Financial Centres (IFCs). IFCs offer overseas clients services such as international banking, investment management and insurance.
Participants also discussed the unintended economic consequences and other negative impacts that “de-risking” is having on small state IFCs and the role that standards designed to combat money laundering and the financing of terrorism are playing in driving this de-risking.
The Minister and the Secretary-General agreed that an evidence-based approach is needed to understand the impact of international tax policies on IFCs. He commended the Commonwealth for its timely response and for giving smaller Commonwealth countries and jurisdictions a voice. He also called for a regional financial sector secretariat.
Minister Inniss later said in a speech to the roundtable participants: “We must not sit back and believe that we cannot be a voice of reason and the voice at the table that matters most. Even in the absence of deep empirical evidence, is that this sector, the international business and financial services sector, is extremely critical to the economies and societies of each and every one of us.”
Secretary-General Scotland acknowledged the importance that IFCs can play in the economies of small states such as Barbados, as they seek to diversify their economies and become more resilient, and the challenges posed by the current international taxation and regulatory environments, including the international responses to the ‘Panama Papers’.
She revealed that the Commonwealth will be releasing a policy paper at the end of June with proposed solutions to deal with de-risking.
The Secretary-General congratulated Barbados for its leadership in promoting tax transparency, given its positions as Vice Chair of the Steering Group on the Global Forum on Transparency and Exchange of Information for Tax Matters.
Discussions between the Minister and Secretary-General moved on to the importance of keeping the empowerment of youth and women high on their agendas.
Secretary-General Scotland said: “This week, Barbados will be joining many other Commonwealth countries in celebrating the achievements of the amazing young people who have been recognised in the Queen Young Leaders Award.
“Barbados is a prime example of the Commonwealth spirit, which says ‘yes the challenges to sustainable development are great, but we are determined to pool our talents and resources and work together to find practical solutions’.”
