Yes, tax tech giants

GABRIEL FARIA, TT Chamber of Industry and Commerce CEO on Thursday backed a Senator’s call for foreign tech giants like Amazon and Google to pay taxes in TT where they undercut businesses such as the local media.

Independent Senator Charrise Seepersad in her budget speech earlier this week said these global firms drain foreign exchange from TT posing “a serious threat” to the local economy. She had said, “They simply create digital platforms and provide connectivity among consumers and accrue wealth to the platform owners.”

In response, Faria told Newsday, “It is an issue in other parts of the world.”

He said the chamber discussed the senator’s call with its members and legal minds.

“France has implemented procedures to ensure that when trade goes on across borders via the internet the receiving entity is appropriately charged for the benefit they derive. Barbados, right here in the region, put some mechanisms in place I believe, for Air BNB.”

“I believe that as new technologies and new methods of doing business are developed, our regulatory and legislative environment must be updated to ensure the country as a whole does not lose out because organisations not domiciled here are not paying their fair share of taxes or VAT.

“In principle, the comments she (Seepersad) made are something the Attorney General and business community need to come together on and identify a framework to ensure a balanced battlefield for all constituents, local businesses or international business.” He said countries are free to look at each other for best practice in making such changes.

Faria gave as an example a company that is physically domiciled in the US, but for tax purposes is registered in Europe and is competing with a local company that is paying all of its property tax, VAT and NIS. That overseas company, he said, is able to transact their business here and take money earned offshore without having to pay any local taxes.

Faria said it is clear new legislation is needed to address this. “We are members of the International Chamber of Commerce (ICC) and I know this is something that has been discussed. I’m confident it will result in legislative changes. We support this in principle.”

Last year, ANSA McAl head A. Norman Sabga blamed an $11 million loss at CNC3/Guardian Media Limited on foreign tech giants, which do not invest in TT, even as his firm pays taxes, employs 600 workers and occupies property. Sabga said then, “They have a huge advantage in the market-place but they have nothing on the ground.”