New OECD list shows Caribbean nations still lagging

In order to graduate to the ‘white list’, jurisdictions are required to sign at least 12 tax information exchange agreements (TIEAs) with OECD member countries.

BRIDGETOWN, Barbados, March 11, 2010 – Caribbean countries make up almost half the jurisdictions that have not sufficiently lived up to commitments to meet international tax standards, according to the latest report released by the Organisation for Economic Cooperation and Development (OECD) yesterday.

Almost a year after the last report was issued on April 2nd, the OECD indicates that Anguilla, Belize, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines are among the 20 that have not yet done enough to get off the so-called ‘grey list’ of countries that have committed to the internationally agreed tax standard, but have not yet substantially implemented. The list indicates that they all made the commitment since 2002.

In order to graduate to the ‘white list’, jurisdictions are required to sign at least 12 tax information exchange agreements (TIEAs) with OECD member countries.

In the April report, Barbados was the only Caribbean country to be on the list. The March 10th progress report shows that it has been joined by Antigua and Barbuda, Bermuda, the British Virgin Islands, Cayman Islands, the Turks and Caicos Island, and most recently the Bahamas, which signed seven TIEAs to add to the 11 already completed, just in time to make the list released yesterday.

“Given the role that the Bahamas plays in the financial world, I am particularly pleased that they have made significant progress and they continue to expand their network of partners with whom they can exchange tax information,” said Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration.

The St Kitts and Nevis government has indicated that it is now very close to meeting the standard and will have the required TIEAs a week before the March 31st deadline set by the OECD. Ten agreements have already been signed and officials are set to endorse agreements with six Nordic nations on March 24th.

According to a statement released by the government, St Kitts and Nevis has also already initialed or concluded negotiations with and are awaiting dates for signature with Canada, France, Germany, Norway, Sweden, Greenland, Faroe Islands, Iceland, Finland and San Marino.

Additionally, it said, the federation has commenced discussions with India, Japan, the Republic of Seychelles and the United States on Tax Information Exchange Agreement but has not yet confirmed the text for these agreements.

According to the updated OECD report, of the other Caribbean countries still on the grey list, Anguilla has signed 11 TIEAs, St Vincent and the Grenadines 8, St Lucia 5, Montserrat 3, Grenada 2 and Dominica just one.