BRIDGETOWN, Barbados, Oct. 28th, 2015 /CNW/ – Today, Barbados formally endorsed the AEOI global standard during a signing ceremony held in Barbados. The event was held in conjunction with a meeting of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes that was also hosted in Barbados.
“Transparency and the exchange of tax information between governments has long been a strength of Barbados and it is a cornerstone of our reputation as a leading, low-tax financial centre”, said Donville Inniss, Barbados Minister of Industry, International Business, Commerce and Small Business Development, and Vice Chair of the Steering Committee of the Organization For Economic Cooperation And Development (OECD) Global Forum. “However, today’s signing, one that binds Barbados to the OECD’s global standard for the automatic exchange of information, is important because it reinforces our commitment to transparency and to the full participation of Barbados within discussions regarding international tax matters.”
In addition to the AEOI global standard, Barbados plans to sign the OECD’s multilateral competent authority agreement (MCAA) – a mechanism which facilitates AEOI. Signatories to the MCAA have control over their international relationships and apply their own standards on confidentiality and data protection.
“AEOI is an essential practice for Governments and supporting this OECD initiative is now a minimum requirement of entry for jurisdictions that wish to participate within the global economy. As a signatory to the AEOI convention, Barbados once again reinforces its reputation – that of a highly cooperative and well-regulated international financial centre,” continued Minister Inniss. “In my role as Vice Chair of the OECD Steering Committee, I will continue to help governments understand that some offshore financial jurisdictions -those that embrace the creation of a substantive businesses and ethical business structures – can, and do, provide an enduring benefit to both domestic markets and the global economy”.
To facilitate economic development in both Barbados and host countries, Barbados has a long-held strategy to negotiate fulsome double taxation agreements and bilateral investment treaties. Such agreements facilitate mutually beneficial international partnerships and provide Barbados-based structures with a unique ability to go beyond the exchange of tax information and actually stimulate international trade. A study conducted in 2014 by Dr. Walid Hejazi, Professor of International Business, Rotman School of Management, examined the unique economic relationship between Canada and Barbados. The study showed that the use of Barbados-based structures by Canadian companies offered many benefits, including; greater employment in Canada, salary improvements for Canadian workers, enhanced profitability and productivity for companies, and increases in the net taxes collected in Canada.
About Barbados’ Ministry of Industry, International Business, Commerce and Small Business Development
The Ministry of Industry, International Business, Commerce and Small Business Development has responsibility for the business sector in Barbados. The International Business Unit (IBU) within the Ministry regulates and licenses international business companies and societies with restricted liability. Additionally, the IBU oversees policy development for the international business sector, facilitates the introduction of new and updated legislation and spearheads the negotiation of tax and investment treaties, as well as exchange of information agreements, on behalf of the Government of Barbados.
About Barbados’ international business sector
Barbados’ international business sector contributes approximately 9% of the nation’s GDP and is comprised of approximately 4,000 entities. Significant vertical markets within the international business sector include; financial services, niche manufacturing and information and communications technologies.