ST. JOHN’S, Antigua – Caribbean Community (CARICOM) leaders are expected to meet before the end of July as they seek to adopt a common position on the decision by the G20 Finance Ministers for a minimum global corporate tax rate.
CARICOM chairman Gaston BrowneCARICOM chairman and Antigua and Barbuda Prime Minister, Gaston Browne, speaking to reporters at the end of the two-day CARICOM summit on Tuesday night, said that the regional leaders had also “condemned the continued economic assault on CARICOM States by the European Union through the relentless inclusion of several member states on blacklists with respect to non-cooperative tax jurisdictions…”
Several Caribbean countries, including Bahamas, Jamaica, Bermuda, the Cayman Islands, the British Virgin Islands are among 130 jurisdictions that have agreed to the outline of a two-pillar plan to overhaul the global tax system.
However, Barbados and St Vincent and the Grenadines are two of nine countries which did not come into agreement.
“In as much as those countries gave commitment in support of the minimum global corporate tax, no one knows what the parameters will be and until such time as the details are known and the impact of that decision, then obviously CARICOM countries may be advised to hold on any further commitments,” Browne told reporters.
“I am told in as much that it is an indicative statement, there is no legal commitment up to this point and that is why we are trying to have this meeting of heads before any formal, legal commitment is given so that we could better understand the implications of this corporate minimum tax and how it would impact on our revenues and how it would impact on the development of our people.”
Browne said that the meeting would also allow for the development of strategies “to negate any potential risk.
“So that matter will be discussed at our meeting at the end of July and then we will communicate further to the public in terms of the strategies we intend to pursue. The idea is not to be contentious but obviously to hold high level dialogue with policy makers among the G7 to align with members of the G20 in order to make sure our interests are protected.
“We do understand that there is a need to address the issue of shifting of profits which has created a problem for a number of developed and large developing countries. We are not opposed necessarily to the initiative, “he said, noting that while he would not want to pre-empt the outcome of the discussions “this is a matter that will be flagged”.
Regarding the blacklisting of the region by Europe, Browne said “it remains a threat to the economic security of member states.
“Heads of government condemn the excessive economic pressure on CARICOM states by the European Union with the inclusion of several member states on blacklists with respect to non-cooperative tax jurisdictions and high risks third countries….”
