Published On: Tue, Jun 18th, 2013

G-8 Proposal Multilateral Information Exchange disadvantage for our International Financial Sector

Alex RosariaWILLEMSTAD – The United Kingdom (UK) suggests that countries, besides the bilateral tax exchange treaties, should also exchange information on multilateral level.

The UK brings the subject up for discussion at the G-8 summit in Ireland this week. This topic is also high on the agenda of the British High Commissioner to Barbados who will visit our country this week. According to the leader of political party PAIS, Alex Rosaria, the UK proposal is unacceptable, and is not for the benefit of our economy and international financial sector in particular.

Curaçao has a network of some 25 bilateral tax exchange treaties (TEIAS), which has led our country to no longer appears on the blacklist of the Organization for Economic Cooperation and Development (OECD). This TEIAS gives enough guarantees to our treaty parties that we have a transparent jurisdiction with a well established tax system and that we provide adequate assistance on the basis of the Treaty provisions at all times.

As a country we are working on building a network of TEIAS since 2003. Although TEIAS give your country a good name, it does not mean that it will get more business. This business is obtained by entering into double taxation treaties (DTAS). DTAS provides, next to data exchange, also the possibility for the development of economic activities.

"A DTA provides what we want (business) and what they want (exchange of information). So a win-win, " Rosaria said. He says it's just unfortunate that the G8 continues to insist on more exchange of information, but (almost) never shows interest in closing DTAS with jurisdictions like Curaçao. Rosaria, will meet the High Commissioner of the UK later this week and will remind him that the economic and fiscal policy of the island should be taken to build up the DTA's. "We like to work with transparency in the world. But we cannot and will not continue to solve the problems of the rich countries while our industry will not go forward," according to Rosaria.

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