Ambassador Hull: Region should not be strong-armed into becoming tax collectors for the US government
St. Kitts-Nevis Permanent Representative to the OAS, Dr. Everson Hull has expressed strong views on the impact of FATCA on the region’s banking system.
Delivering a presentation to over 200 banking executives and other stakeholders in the financial services sector from across the Caribbean at the recent Caribbean Association of Banks Inc 42nd AGM and Conference held in St. Kitts, the Ambassador said, “We cannot stand idly by and allow the DC Government and others to effectively “strong arm” low-tax Nations such as ours into being their tax collectors.”
He was referring to the US’ Foreign Account Tax Compliance Act (FATCA) which requires banks in other countries to report financial information on US citizens for tax purposes. Additionally, almost all of Caricom’s members are included in the US’ District of Columbia proposed Tax Haven list legislation.
Dr. Hull said the DC government’s actions are having harmful effects on some of the US’ very own friendly trading partners, and as such the OAS Caricom bloc has had a very aggressive and strong response in denouncing the practice of the State Governments.
“[FATCA] turns us into their off-shore tax collection agency, and pays us nothing, for enduring the financial hardships that we must endure to do that which they have failed to do for themselves,” he posited.
“The OAS CARICOM caucus has been vigorous in denouncing the wrongful actions of the DC Government. A few member states, including St. Kitts and Nevis, have drafted strong letters to the DC City Council and to key Members of Congress who serve on the House and Senate Appropriations Committees. In addition, a strong joint CARICOM letter expressing dissent has been dispatched to the oversight bodies on Capitol Hill that draws attention to the several steps that CARICOM members States have taken in sharing tax-related information with the U.S.”
This has borne fruit, he revealed, as word was received that the DC government has withdrawn its support for its proposed “tax haven” legislation and will engage in further review of the proposal.