Bankers want MPs to pass tax bills

THE Bankers Association called on the Penal/Debe Chamber last Tuesday to urge their MPs to support legislation for the Board of Inland Revenue to automatically exchange financial information with other countries.

Amar Ramlogan and Richard Sammy, both managers at Republic Bank and BATT representatives, speaking at a Global Forum breakfast meeting at Funsplash Waterpark, said the move was necessary to pass the Income Tax (Amendment) Bill 2019, Mutual Administrative Assistance in Tax Matters Bill 2018 and Tax Information Exchange Bill 2018.

Global Forum is the key international body for ensuring the implementation of internationally agreed standards on tax transparency and automatic exchange of information for tax purposes around the world through a monitoring and peer review process.

The automatic exchange of information can inform countries of their residents' wealth concealed offshore to escape tax.

The bill which seeks to amend the Income Tax Act requires a three-fifths majority of members of both Houses of Parliament.

TT is currently rated as the only Caribbean country on the European Union list of non-co-operative tax jurisdictions because it is non-compliant with the Global Forum’s international standard for the exchange of information on request.

Ramlogan stressed to the business owners, including president of the chamber Rampersad Sieuraj and president of the Greater San Fernando Chamber Kiran Singh, that the banking sector was duty-bound to comply with international standards. He said the cost of doing business for non-compliant banks will increase and their profitability will decline.

He explained they faced de-risking by foreign correspondent banks, which will jeopardise international transactions such as remittances, credit card payments, cheque-clearing and settlement, international wire transfers, trade and finance.

“If you are doing anything with respect to wire transfers, credit card payments – anything that has to do with trade finance – it will impact the local economy and business in TT,” he warned.

He said sooner or later if the Association does not comply, “We are going to see wire transfers taking extra time to go out. It is going to affect your suppliers, business/supplier relationship and private citizens who are making purchases, whether it be credit-card purchases or on Amazon or similar networks we make payments through.”

Some chamber members agreed to lobby their respective MPs to support the bills. They also used the opportunity to discuss issues relating to the ease of doing business, foreign-exchange issues, opening business accounts, accessing small business loan facilities and the cost of borrowing.