BATT concerned about non-compliant comment

The Bankers Association (BATT) is concerned that TT has been named as one of 17 countries deemed, “non-cooperative jurisdiction for tax purposes.” According to a release from the EU, TT’s appearance was because of its non-compliance rating from the Global Forum and because it is yet to sign and ratify the Organisation for Economic Co-operation and Development’s (OECD) Multilateral Convention on Mutual Assistance in Tax Matters. The EU also found TT has a, “harmful preferential tax regime and did not commit to addressing these issues by December 31, 2018.”

BATT warned that failure to rectify this could lead to de-risking of local banks, additional customer due diligence requirements, multi-national banks reconsidering their position in our domestic market and increased delays and costs of doing business locally.

Noting the EU will be reviewing the list annually, BATT said if TT is to be removed from it, “it is imperative that the country meets the transparency standards and implements anti-profit shifting measures, set out by the OECD, in the shortest possible time frame.” BATT added that while it is clear Government has made progress in addressing the deficiencies highlighted in the Phase 1 Report by the Global Forum of the OECD, further legislative changes are urgently required in order to fully meet the requirements.

Thus BATT’s urging of the Opposition to “work with the Government” to do so, since a special majority of Parliament is required legislation as soon as possible in order to meet the OECD’s Global Forum recommendations. BATT said it stands ready to support this process and to provide any information required on the three required pieces of legislation.

Amendments to the Income Tax Act, Chapter 75:01 to provide for the sharing of information under a number of double taxation agreements; passage of the Double Taxation Agreements Bill – addressing TT’s 17 signed Double Taxation Treaties and agreements to allow for incorporation of exchange of information provisions entered into between TT and any other country; and The Mutual Administrative Assistance in Tax Matter Bill.

“It is appreciated,” BATT said, “that once the first two Bills are passed then the OECD members may agree to TT’s membership to the Multilateral Convention on Mutual Assistance on Tax Matters (MAC), which would lay the foundation for the enactment of the Mutual Administrative Assistance in Tax Matter Bill.”

Having urged “robust and expeditious action by the parties responsible to rectify deficiencies in the areas identified”, BATT reiterated that TT’s banking sector “is sound, properly regulated and will continue to fulfil its mandatory reporting requirements.”