Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss has reiterated that Barbados is not a tax haven.
His comment came following the opening ceremony of an ISO training workshop, which took place at the Radisson Aquatica Resort yesterday morning.
“I won’t deny that there are jurisdictions that may facilitate tax evasion as some illicit activity, but Barbados, I must stress over and over again, is not that kind of domicile. We have never been a country that could justifiably earn the reputation of being a tax haven. We do charge taxes to businesses in this entity, whether they are domestically, regionally or internationally owned,” he said.
“More importantly, we always strive to improve on the regulation of those entities that come into the space, whether it be domestic, regional or international. One must appreciate, given the dynamics of international business and global finance, the domicile of Barbados will always be picked on.”
He proudly noted that he would have had persons express that if you can do business legitimately in Barbados, you can do business anywhere in the world, “and the minute you want to take shortcuts, go take your business elsewhere”.
The Minister went on to note that there has been talk about a fall in revenues from the international business sector.
“I know people are getting excited and politicians want to have Town Hall meetings on the topic, but I would advise them to please educate themselves before they speak in the public domain on these matters. I’ve heard the Prime Minister, the Minister of Finance and the Governor of the Central Bank say that part of the prolonged economic challenges that we’re having relates to a fall in revenue and corporation tax from the international business sector, and that is absolutely true,” he said.
“But it is not because we have not in recent years made an effort to attract and retain more businesses in Barbados.”
He explained that as a result of an amendment to the international business companies back in 2010/2011, a lower rate of tax was introduced on certain entities based on the income levels as a direct result of the Canadian Parliament decision to grant benefits to entities from countries that were afforded tax exchange agreements. He added that that decision had been “very transparent” and that decision resulted in a fall from corporation tax in the international business sector.
“So for anyone to say that there has been a fall in business because of my ministry or myself, is not the truth,” he said.