Imbert: Multilateral convention signing good for Trinidad and Tobago

FINANCE Minister Colm Imbert said the recent signing of a multilateral convention on mutual administrative assistance in tax matters, and ongoing discussions with the European Union (EU) to have Trinidad and Tobago removed from its list of non-co-operative tax jurisdictions, has bolstered this country's ability to attract foreign investment which in turn can stabilise incoming currency flows.

In a press release issued after his return from France – where he signed the multilateral convention and approached the EU to have TT removed from the non-compliance blacklist – Imbert said the signing enable TT to exchange information with 148 other jurisdictions, including major global financial centres.

The signing also gives TT the chance to contribute to more than 8,000 exchange relationships already established under the convention. Imbert left for France on November 7, for the signing and meeting with the EU.

The release said Imbert also signed the multilateral competent authority agreement (MCAA) for the automatic exchange of information under the common reporting standard (CRS) and the country-by-country (CbC) reports known as the CRS MCAA and the CbC MCAA.

“By signing the CRS MCAA, TT agrees to collect financial account information from financial institutions (example, banks, investment entities) and automatically exchange this information with other participating jurisdictions on an annual basis," the release said.

“This signing marks a significant milestone for TT, underscoring the nation’s commitment to global tax transparency and cooperation. By joining the convention and the associated MCAAs for automatic exchange under the CRS and CbC reporting, TT demonstrates its dedication to upholding international tax standards and combating illicit financial flows.”

The minister also visited the EU’s offices in Brussels on November 8, for discussions on the country’s placement on the EU's blacklist.

The meeting, the release said, was requested by TT, with the goal of showing the strides it has made to align with the EU’s criteria for tax co-operation.

“Given the pivotal nature of the recent signing of the convention, the minister highlighted this milestone as a testament to TT’s dedication to global tax transparency and compliance,” the release said.

The release said the international response to TT’s signing of the convention and the associated MCAAs on CRS and CbC reporting highlighted TT’s growing influence and commitment to global tax standards.

The signing not only makes TT a leader in tax compliance in the region, but it also gives TT greater access to capacity-building support from the Global Forum on transparency and the exchange of information for tax purposes.

Positive Global Forum ratings resulting from the signing of the convention will also enable TT to attract foreign investment, the release said.

“Many international financial institutions incorporate these ratings into their investment policies,” the release said. “This key milestone will help solidify TT’s profile as a reliable destination for facilitating business.”