Category: Barbados

Legal twist to info exchange

Barbados appears to be moving into full financial information-sharing mode as the world’s most powerful countries put their foot down on tax evasion. It is already known that last November Government signed an Inter Governmental Agreement with the United States (US) to exchange information on their citizens who have thousands… – Continue reading

Inversions Are Often Last Stop for Avoiding U.S. Taxes

The surge in U.S. companies avoiding taxes by taking a foreign address has been condemned by President Barack Obama and stirred a policy debate in Congress. What’s often overlooked is that these “inversions” are typically a final step in a hopscotch of multinational tax dodging. Many companies invert after years… – Continue reading

Barbados signs TIEA with Colombia

BARBADOS AND COLOMBIA have taken significant steps to improve the exchange of information on arrangements with the signing of a Tax Information Exchange Agreement (TIEA) recently. The Barbados-Colombia signing took place on November 25, in Washington D.C. Ambassador John Beale initialled the document on behalf of Barbados, while Colombia’s Ambassador… – Continue reading

Barbados Promoted To OECD Global Forum Vice Chair

The Barbados International Business Association (BIBA) has welcomed Barbados’s appointment to Vice Chair of the Global Forum of the Organization for Economic Cooperation and Development (OECD), saying that the decision validates the jurisdiction’s good standing among international business and financial centers. Barbados is to take over from Bermuda, for two… – Continue reading

RBC exits wealth management in Cayman Islands, Caribbean

RBC Wealth Management has announced plans to discontinue its private wealth management business in the Caribbean. The strategy to “realign certain businesses within [its] international operations” was presented to staff in an internal memorandum last Thursday. It is not clear whether the business will be closed or sold. Paul French,… – Continue reading

Barbados Signs US FATCA Agreement

The Government of Barbados and the United States have signed an inter-governmental agreement (IGA) to facilitate compliance with the US Foreign Account Tax Compliance Act (FATCA). FATCA, which was enacted by the US Congress in 2010 and took effect on July 1, 2014, is intended to ensure that the US… – Continue reading

Barbados Agrees to Help the United States Fight Tax Evasion

Barbados has agreed to share information with the U.S. under a new law aimed at preventing offshore tax evasion by American citizens. One of the most controversial laws of the Barack Obama administration, the Foreign Account Tax Compliance Act (FATCA) requires financial firms to report information on U.S. account-holders to… – Continue reading

Barbados and US sign FATCA agreement

THE GOVERNMENT of Barbados is committed to the implementation of global standards for the supervision and regulation of the international business and financial services sector. This affirmation came today from Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, prior to signing a Foreign Account Tax Compliance… – Continue reading

Barbados wants talks with Colombia on tax treaty

BRIDGETOWN, Barbados (CMC) – Barbados says it seeking to hold talks with Colombia on a Tax Information Exchange Agreement (TIEA). Industry, International Business, Commerce and Small Business Development Minister Donville Inniss, said that although Bridgetown had recently initialled a TIEA with Bogota, neither side considered the TIEA an alternative to… – Continue reading

Colombia declares Panama a tax haven, seeking to recoup lost revenue

Colombia on Wednesday declared Panama a tax haven for individuals and businesses as the government looks to curb tax evasion and seeks to pressure the Central American country to sign a financial information-sharing agreement. The move could push Colombian investors and businesses to pull out of Panama, since assets stored… – Continue reading

The Marzen decision: a typical example of BEPS

On June 10, 2014, the Tax Court of Canada (“TCC”) delivered its most recent decision on transfer pricing, one which involved a Barbados structure. In Marzen Artistic Aluminum Ltd. v. The Queen[1] (“Marzen”), Justice Sheridan upheld the Canada Revenue Agency’s (“CRA”) transfer pricing adjustment as well as the penalty under… – Continue reading

The Real Tax Benefits of Inverting to Canada

On August 26, Burger King announced that it entered into an agreement to acquire Tim Hortons, Inc., the Canadian coffee-and-doughnut chain, in a transaction that will be structured as an “inversion” (i.e., Burger King will become a subsidiary of a Canadian parent corporation).  The deal is expected to close in 2014… – Continue reading

Premiers need to act on tax havens and the CRA

Ottawa (27 Aug. 2014)—Premiers and territorial leaders in Charlottetown for the Council of the Federation need to demand the federal government and the Canada Revenue Agency (CRA) stem the flow of Canadian money offshore because it is depleting revenues by at least $7.8 billion each year. Retrieving that money could… – Continue reading

101 Countries Sign Up For FATCA Network

Foreign Account Tax Compliance Act (FATCA) has been in force for a month and still more countries are joining the tax network. So far, 101 countries and financial jurisdictions have either signed or agreed to join FATCA. FATCA is aimed at identifying US taxpayers with offshore bank accounts and investments. Overseas… – Continue reading

Billionaire Eugene Melnyk: I’m a ‘whistleblower’ on tax allegations against Valeant

MONTREAL • Eugene Melnyk, the billionaire owner of the Ottawa Senators and founder of drug maker Biovail Corp., is waging war against the company that now controls his one-time business. Mr. Melnyk alleges that Valeant Pharmaceuticals International Inc. is masquerading as a Canadian company to make use of this country’s… – Continue reading

Singaporean DTA With Barbados In Force

The double taxation agreement (DTA) between Singapore and Barbados came into force on April 25, 2014, after the completion of ratification procedures by both sides. The DTA is intended to boost cross-border trade and investment between Singapore and Barbados by providing greater clarity on both parties’ taxing rights to ensure… – Continue reading

Barbados Ponders Property Incentive For The Rich

Barbados is weighing new ways to attract offshore investments. The Central Bank of Barbados (CBB) confirmed this week that the government is contemplating providing high net worth foreigners with the right to hold and own property on the tiny island of 283,000 people. The confirmation follows the disclosure by… – Continue reading

Barbados seeks to enhance regulatory framework

During 2013, the Central Bank of Barbados (Bank) continued to enhance its regulatory framework in response to emerging international standards and best practices and to collaborate with other domestic regulators and stakeholders on various national issues, including the Global Forum on Transparency and Exchange of Information for Tax Purposes Peer… – Continue reading

Barbados is an underrated sovereign – Euromoney

Recent rating agency downgrades seem to underestimate the underlying strengths of the Barbadian economy, Euromoney magazine said in its 2014 guide to Barbados released during the week ending April 4. Euromoney said: Barbados is one of the most diverse economies in the Caribbean. It’s certainly the most robust, drawing in… – Continue reading

British Virgin Islands: BVI & Canada: Down To business – TIEA Now Effective

The Canada-BVI Tax Information Exchange Agreement (“TIEA”) came into force on 11 March 2014. The TIEA was signed in May 2013, and the effective date provisions are set out in Article 13 of the Agreement. The BVI is now party to 25 TIEAs. What are the benefits? The BVI/Canada TIEA is significant due… – Continue reading

Corporate tax avoidance ‘scheme’ hurting Canada, expert says

Country’s corporate tax rate sits at about 25 per cent As Canadians dutifully file personal income tax returns during the coming weeks, consider this: many profitable companies pay little or no tax. In an interview this week on The Sunday Edition, Dennis Howlett, executive director of Canadians for Tax Fairness,… – Continue reading

BVI and Canada: down to business — TIEA now effective

The Canada-British Virgin Islands (BVI) tax information exchange agreement (TIEA) came into force on 11 March 2014. The TIEA was signed in May 2013, and the effective date provisions are set out in article 13 of the agreement. The BVI is now party to 25 TIEAs. The BVI-Canada TIEA is… – Continue reading

Barbados To Expand Double Taxation Network

Barbados’ financial-services sector is rated as the second-largest source of foreign exchange earnings, behind tourism, for which new markets are being sought outside of Canada. On Thursday, central bank governor, Dr DeLisle Worrell, said the country has been losing business in its International Business and Financial Services Sector (IBFS), which… – Continue reading