RTC Director

Overseas territories leaders agree to increased tax transparency

Leaders of Britain’s overseas territories on Saturday agreed to back British Prime Minister David Cameron’s G8 initiative on tax, trade and transparency.

At a meeting with overseas territories leaders, the prime minister outlined his plans and requested their support for his new policy for a global system of transparency on tax matters.

In a joint statement released through the British Virgin Islands London Office, the leaders of Anguilla, Bermuda, British Virgin Islands, Gibraltar, Montserrat, and Turks and Caicos said they had “had a very clear agreement and constructive exchange of views on the practical steps needed to tackle the global problem of tax evasion and how the UK and the Overseas Territories will continue to apply our high standards of regulation to address this.”

The leaders reiterated and confirmed their agreement to take the following steps: 

- “To play an active part in the new pilot initiative of multilateral automatic tax information exchange launched by the UK, France, Germany, Italy and Spain. 

- “To prepare national action plans on beneficial ownership to meet the FATF standards; and

- “To commit to joining the multilateral convention on mutual administrative assistance on tax matters. 

“It is our collective view that as we free up the world economy we must make sure openness delivers benefits for rich economies and developing countries alike and that we maintain confidence in the fairness and effectiveness of our tax systems and in the operation of global markets. Tackling tax evasion and fraud is a global responsibility in which we will continue to play our full part,” the statement read.

“We welcome the prime minister’s willingness to work in partnership with us in seeking to achieve a step change in international standards and establishing a global level playing field through the UK’s G8 presidency. 

“As part of our continuing commitment to tackling tax evasion and fraud, we have also undertaken to prepare action plans setting out the concrete steps, where needed, to fully implement the Financial Action Task Force standards to further increase our already high standards of transparency on beneficial ownership information and to ensure that this information is available to law enforcement and tax authorities in accordance with our established mutual legal assistance cooperation regimes. 

“The multilateral convention on mutual administrative assistance in tax matters is an important global instrument, which builds upon our existing network of many bilateral agreements and other existing arrangements for exchanging information between tax authorities. The convention offers an accessible route to increase the number of jurisdictions which will be able to benefit from information exchange. It is for this reason that we have committed to joining the convention and have requested its extension to our jurisdictions as soon as possible, subject to our national procedures and the need for ensuring the achievement of a global level playing field. 

“We are committed to continuing to play a leading role in delivering a fair, responsible and effectively regulated global business environment. We express the hope that the UK prime minister will succeed at Lough Erne in securing a new global standard and all Leaders will commit to move together on this common agenda designed to secure more economic growth.”

On his return to the British Virgin Islands from London, premier and minister of finance, Dr Orlando Smith, reiterated his support for the UK government’s global agenda on tax, transparency and trade.

Smith said: “In the debate about tax and transparency the fact that the BVI already has stronger financial regulation for trust and corporate service providers, as well as rules regarding beneficial ownership than many countries in the G8 itself, has not been adequately appreciated.

“For many years we have implemented the highest international standards on transparency, accountability and information exchange on tax matters, as set out by the OECD. The BVI will continue to be a constructive partner in evolving and setting the highest standards of regulation. We are proud of our part in the global economy and we believe that good regulation is good for business.

“We are committed to continuing to playing a leading role in delivering a responsible and effectively regulated global business environment and to tackling the global problem of tax evasion as part of a coordinated, balanced and meaningful process.”

Source-Caribbean News Now

by RTC Director

Bahamas officials to address cruise industry's crime concern

The Ministry of Tourism, the police and major cruise lines are working on a white paper on crime that will specifically address how to prevent crime in tourist areas, Bahamas Minister of Tourism Obie Wilchcombe said.

This comes after several cruise lines that visit The Bahamas began issuing crime warnings to their passengers.

The proposed white paper was discussed during a meeting attended by police, representatives from the Ministry of Tourism and the Ministry of Transport and officials from the Florida Caribbean Cruise Association last Thursday, Wilchcombe said.

The tourism minister said he was not at that meeting.

He said the major cruise lines are understandably worried about the country’s crime levels and how crime can affect the millions of tourists who visit The Bahamas on cruise ships each year.

“They bring visitors to a country and they are responsible for those visitors,” he told The Nassau Guardian.

“Don’t forget, there is liability and any visitor who would meet any sort of violence while in another destination that they have brought here they have a [legal] responsibility.

“So they have to ensure that the visitor is safe. They’ve spoken to us very frankly about the situation and we expect them to. We reassured them that we shared their concern because it’s not only the visitor; it’s for the citizenry.”

In April, Wilchcombe told reporters that cruise officials were warning visitors on crime in The Bahamas.

He said his ministry has a good working relationship with the cruise industry and also discussed new ways to create spin-off jobs for Bahamians from the sector.

“A number of things are being worked on, but we have to put behind us this whole question, this whole fear factor,” he said.

“So what we have to do is ensure we can eliminate that because that’s not the destination we want.”

Kewana Rouse, a tourist from South Carolina, traveled to The Bahamas onboard a Carnival cruise ship last week.

Rouse, a frequent traveler to the country, said the cruise line warned each guest to be wary of crime in Nassau, which made her anxious once the ship docked in Nassau.

“They have letters on the cruise for each traveler just letting them know that although the island is beautiful be careful because there is crime in the area and beware,” she said.

“I was definitely nervous. I’ve been here a lot of times and I’ve never been nervous.”

Although crime against locals has been a major issue for several years, recent crimes against tourists have grabbed headlines locally and internationally.

Last week, the United States Embassy’s Vice Consul Kathleen Cayer was robbed and assaulted on her way to St Francis Xavier Cathedral.

In May, American visitor Kyle Bruner was shot dead during a reported armed robbery.

Police said Bruner was trying to defend a female friend who was being robbed.

Courtesy of the Nassau Guardian

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by RTC Director

Election challenge hearing set

Justice Alex Henderson got down to business Tuesday and pressed attorneys involved in the petition challenge to Tara Rivers’ election to move quickly because of the public interest. The case is now set for 17 July, when the lawyers representing John Hewitt, the petitioner, and Rivers will argue whether or not she was qualified to be elected to office in West Bay at last month’s election. Given that Hewitt is the husband of Velma Hewitt, the UDP candidate who came fifth in the political race and who is a former officer of the local courts, Henderson told the attorneys involved that if they wished to make representations to have the local judges all recuse themselves from the case, they must do so in writing by Friday.

Meanwhile, Rivers, the newly appointed education minister in the PPM administration, has been given just two weeks to prepare her affidavit addressing the facts of the allegations challenging her qualification by the petitioner, who is represented by Steve McField.

Paul Keeble, who along with Grahame Hampson is representing Rivers, was only able to squeeze one extra week from Henderson, despite his original pleas for four weeks so they could consult with constitutional expert and lead counsel, Jeffery Jowell QC, in London. The judge pointed out the need to address the issue quickly but bent on his original seven days once a date was secured for mid-July.

The lawyers on both sides were instructed to have their skeleton arguments submitted to each other and the court by 12 July in preparation for the two-day hearing, which will decide whether or not Rivers is qualified.

It became apparent that Rivers may still hold a US passport during the directions hearing and that her lawyers will be arguing the case that the passport was “thrust upon her by birth” rather than an acquisition demonstrating any allegiance to another country as alleged.

The hearing move quickly as Henderson pushed the lawyers into action in front of a packed courtroom, where significant numbers of Rivers’ supporters from the Coalition for Cayman, the political platform on which she ran, as well as friends were in attendance, including Mervin Smith, Rivers' West Bay Running mate. John and Velma Hewitt and their supporters in West Bay were also in court for the hearing. The new Speaker of the House, Juliana O’Connor Connolly, now a member of the government, was also in attendance.

Aside from the stumbling block that Rivers has to cross in connection to her alleged possession of a valid US passport, she must also deal with a second ground in the petition that relates to her time resident overseas before the election.  It is no secret that Rivers was based in the UK between 2006 and 2009, when she was employed as a legal associate for a London law firm. However, she was also studying part-time.

The elections law requires that all candidates are primarily resident in Cayman during the seven years prior to any election they wish to contest. There are, however, a number of exemptions, one of which is for the purpose of study, but it is not clear if this also applies to those who were employed full-time while studying or just full-time students with part time jobs.

Source-CNS

by RTC Director

Jamaica to join region in banning smoking in public places

Jamaica intends on joining its Caribbean Community (CARICOM) partners in banning smoking in public areas and the workplace.

So far the legislation exists in Barbados, Trinidad and Tobago and Suriname and Health Minister Dr Fenton Ferguson, says he will be seeking the assistance of local and international partners, including the Pan American Health Organisation (PAHO), in the effort to reduce tobacco use here.

He said the Portia Simpson Miller administration is seeking to table the Tobacco Control Act, which will protect citizens from the harmful effects of tobacco smoking, by prohibiting its use in public areas and workplaces.

“When it takes place, I will be calling upon PAHO and other institutions for support because we are up against a very powerful industry and it is going to require allies, local and international, in going forward,” Ferguson said, adding that the government is determined to ban public smoking, even while the tobacco industry brings to the table, significant tax revenue for the country.

“I heard their financial statements only a week ago… almost J$6.5 billion profit. But, whatever that might be, I am saying at the back-end, we are fighting to put in place a strategic plan (2013/2018) for non communicable diseases (NCDs).

“When we come to recognise that it is costing the country some US$170 million annually to deal with the NCDs, it is very clear in my mind that we have a responsibility,” he added.

Statistics from the 2008 Jamaica Health and Lifestyle Survey show that by the age of 16 years, 19 per cent of smokers had initiated the habit and 14.5 per cent smoke cigarettes, while 13.5 per cent admit to marijuana use.

Figures provided by the Jamaica Cancer Society (JCS) reveal that approximately 80,000 young people across the world become addicted to tobacco each day and if trends continue, an estimated 250 million children and young people will die as a result of tobacco-related illnesses.

by RTC Director