ST. JOHN’S, Antigua, CMC – Prime Minister Gaston Browne says the Caribbean Community (CARICOM) is being asked to issue a statement condemning the “attack” by the European Union on the economies of Caribbean countries following Europe’s latest list of non-cooperative tax jurisdictions.
Six Caribbean countries on list
The EU has included several Caribbean countries, namely Trinidad and Tobago, Belize, Barbados, Bermuda, Dominica and Aruba on the new list which they said was based on an “an intense process of analysis and dialogue steered by the Commission”.
The Dominica and Belize governments have publicly condemned the EU’s position and Prime Minister Browne said moves are underway to get CARICOM to issue a statement indicating that ‘we deplore the attack and that we will resist it.
“EU has no jurisdiction”
“In the first instance the European Union has no jurisdiction, they have no right to be issuing any such sanction list. And I see they call it a black list, we also see that as an affront.
“It is prejudicial and what is happening here is that they are trying to avoid tax competition, they are literally overriding our sovereignty to decide on our rate of tax and trying to recover monies that really do not exist,’ Browne said.
Reputational damage
Last month, CARICOM leaders at their 30th Inter-sessional summit in St. Kitts-Nevis said the blacklisting of CARICOM countries by the European Union (EU) has brought considerable reputational damage to the Community.
“Despite all member states, with the exception of one, being removed from the EU blacklist, the damage inflicted is irreparable and has consequential implications for building Member States’ economic and climate resilience given their inherent vulnerabilities,” they said in the communique issued at the end of the two-day summit.
The regional leaders said in this regard they viewed the EU’s approach to “tax good governance” as inappropriate”.
The EU’s Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, said “the EU tax havens list is a true European success. It has had a resounding effect on tax transparency and fairness worldwide.
“Thanks to the listing process, dozens of countries have abolished harmful tax regimes and have come into line with international standards on transparency and fair taxation. The countries that did not comply have been blacklisted, and will have to face the consequences that this brings. We are raising the bar of tax good governance globally and cutting out the opportunities for tax abuse.”
The EU said that its list has led to changes in global tax practices that would have been unimaginable only a few years ago.
