Compiled by Due Diligence
The seeds of Canadian corporations hiding billions of dollars in offshore tax havens were sewn more than 40 years ago, after the Canadian government pursued a series of tax treaties with tiny Caribbean and European nations.
The 92 tax treaties now signed with countries such as Barbados, Jamaica and Malta currently translate into billions of dollars moving out of Canada — nearly all tax free. This includes 22 tax information exchange agreements, where the sharing of tax information is intended to weed out evaders – The Star
On June 8, Barbados’ Minister of Industry, International Business, Commerce and Small Business Development, the Honourable Donville Inniss hosted an Invest Barbados seminar in Toronto with the theme titled: “Supporting Business of Substance”. During the seminar, Minister Inniss addressed the audience on the topic: ‘Welcoming International Business to Barbados’.
More details by accessing the following links:
On June 17 and 18, the Toronto Star ran scathing “Tax Haven” articles prominently featuring Barbados as one of the counties/jurisdictions used by Canadian companies to avoid paying billions of dollars of income tax to Canada Revenue Agency (CRA), specifically mentioning Gildan and Valeant.
See articles at:
While certainly not the intention of The Star, their articles may have the effect of reinforcing Minister Inniss’ pitch of doing business in Barbados to legally avoid Canadian income tax.
There is an interesting interview of Minister Inniss published on March 10, 2016, at:
Interview with Donville Inniss, minister of industry
Minister Inniss is quoted as saying:
Over time, as we have moved away from an agrarian society and more into a service-based one, we have found ourselves producing more and more products for international business and the financial services sector, to the extent now where it has become the second most important part of the economy. We currently have over 4,000 companies licensed in this particular industry, with 5,000 or so employees, making a five percent contribution to our national economy.
It strikes me that Minister Inniss may be shooting himself in his foot with that statement. 4,000 companies with 5,000 employees. That is slightly more than 1 employee per company, which would presumably include nominee Directors.Hardly a big employer of Barbadians; other than Directors and tax lawyers and accountants.
Given the mounting pressure in Canada to make Canadian companies pay their “fair share”, Minister Inniss should be honing his negotiation skills, because he is going to have to be at the top of his game, or punching over his weight, when the Canadians come to renegotiate the tax treaties.
BU recently stated:
Is this the same Minister Donville Inniss who today [16 June 2016] invited disgruntled stakeholders to pursue established government channels to solve problems and avoid the traditional and social media?
DD says “Will he Minister Inniss now be inviting disgruntled Canadian taxpayers to avoid reading the Toronto Star?”
To my mind, Donville Innis is an idiot and should be out of public life.
Hal Austin June 18, 2016 at 2:12 PM #
To my mind, Donville Innis is an idiot and should be out of public life.@@
Hal you can only Name One ? 59 More to go in no special order.
We Will not even talk about the Lawyers along with them , We have to wait for the White People to talk it first, As Always, We will sit and watch the Show to come,
“…Minister Inniss should be honing his negotiation skills, because he is going to have to be at the top of his game, or punching over his weight, when the Canadians come to renegotiate the tax treaties.
Wait and see what needs to be negotiated, and what is on the table, first. Jumping the gun leads to a false start, and these days the starter disqualifies for one false start. The Star is talking about Tax Havens, which have an entirely different meaning from the connotation of places where Governments arrive at a tax treaty. Governments do not sign agreements with tax havens, individuals do.
Did you even read the links to the articles?
Those who have read the program for the Invest Barbados seminar at https://investbarbados.org/docs/Toronto%20Seminar%20June%202016%20Programme.pdf may have noticed that one of the presenters was Professor Avinash Persaud, best known on BU as Exective Chairman of Paradise Beach Ltd – aka the Four Seasons project.
His presentation was titled, Barbados – The Choice for International Business of Substance
The following is the speaker profile for Professor Avinash Persaud
“Non-Resident Senior Fellow, Peterson Institute for International Economics; Emeritus Professor of Gresham College; and Chairman,Intelligence Capital Limited Avinash Persaud’s career spans finance, academia and public policy. He is currently non-resident Senior Fellow at the Peterson Institute for International Economics in Washington, Emeritus Professor of Gresham College and nonexecutive Chairman of Elara Capital PLC. He holds a number of non-executive board positions. He was Chairman, regulatory sub-committee of the UN Commission on Financial Reform; Chairman, Warwick Commission; Member of the UK Treasury’s Audit and Risk Committee and the Pew Task Force to the US Senate Banking Committee; Visiting Scholar at the IMF and ECB and Distinguished Advisor, Financial Sector Law Reform Commission of India.
He is a former senior executive of J. P. Morgan, UBS, State Street and GAM London Ltd. He is a former Governor, London School of Economics and 2010 President of the British Association for the Advancement of Science (Section F). He was elected Director of the Global Association of Risk Professionals and the Royal Economics Society. He won the Jacques de Larosiere Award in Global Finance from the Institute of International Finance and was voted one of the top three public intellectuals in the world on the financial crisis by a panel for Prospect Magazine.”
It is curious that the profile does not include any reference to the private sector venture which he headed up and presumably has a personal stake – Paradise Beach/Four Seasons.
Was Prof. Persaud pursuing self interest in trying to solicit wealthy Canadian investors to bail himself and other investors, including NIS, out of the disaster that is Four Seasons.
Native Son Hal Austin posted several pieces on BU concerning Four Seasons in the past.
In one of those at https://barbadosunderground.wordpress.com/2012/01/12/notes-from-a-native-son-the-four-seasons-investment/ Hal said:
“There is a strong rumour, and it is no more than that, that the executive chairman of the project was the recipient of over US$4 in fees for his alleged involvement in the Bds$120m loan, which the project received in the early years of the Thompson administration. So far there has been no confirmation or denial of this claim. As this involves public money, there is a need to make this clear. Not doing so is a failure on the government’s part.
DD wonders if what fee Prof Persaud received for his presentation at the seminar.
Is it a case of you (Prof Persaud) scratch my (Donville) back, and I will scratch yours.
“Barbados – The Choice for International Business of Substance”?
Where is the substance at Paradise Beach Prof Persaud?
Question from an illiterate – what exactly do we gain from these activities that is so hard to do without?
@ Due Diligence
Here i go again
Maybe it is that “birds of a feather flock together” first we have Pornville saying “fustrated” then we have Persaud saying “Barbados – The Choice for International Business of Substance”
I do not want to get the moniker of BU’s grammar police that was so recently bestowed on Heather Cole.
Ooops she wasnt grammar Police she was BU’s Editorial and Content Manageress
“…Business of Substance…” what is that?
Is Barbados “the Choice”?
Or since Barbados is singular is the noun “business” made singular?
Is the definite article “the” missing?
or should “business” be plural “businesses”?
Look I do understand that Avanash’s mother tongue is not english but, if you getting paid $4M you mean that you cant hire a proof reader?
You DD does tell alot uh lies doah causing dere is no way that this was the topic of that seminar no way!
That makes the Minister Pronville a Dufus, Invest Barbados a team of Dufuses and well Avanash well just a non-english speaker (waki, waki)
How many people attended this Seminar?
We gain per diems Donna, per diems and a time fuh de minister tuh carry he outside woman shopping using de tax payers money.
You know what your problem is Donna?
You is a nice girl who doan do dem naughty tings wid no one who sneaking way from home for daliances and ting.
I feel that you are so honest that when they give you per diem that you bring back receipts and worse still do a back to office report for your mission to justify the per diem.
Wunna nice girls don’t have a bone of turpitude in your body so that is why you would have difficulty understanding why de Minister got to fly 1st Class pun dese inutile missions
Not perfect, Pieces but I just don’t understand why one needs all these THINGS! It has perplexed me all my life and sometimes I’m frozen like a deer in the headlights. So depressing these humans are that the thought of them can paralyze me with anxiety/fear. I really have to fight to overcome it.
Dumbville and Persaud should call it what it really is…they have reduced the island to a 5% prostitute……in 2015 companies got away with not paying taxes on 79 billion, yet can only employ one employee for each company, if ya gonna sell ya ass…in this case peopke….at least be an expensive prostitute.
No Donna…this 2 penny whore arrange DBLP government ministers make..does not benefit the island and people….ever. they hire these indian and white dudes as consultants and they are the ones benefit….of course the politicians will not tell you what they themselves got, they willl leave the taxpayers to speculate…..a wickedly nauseating bunch of self-servibg, greedy people.
The island would not be less better off without the taxhaven arrangement,..there is no benefit, or their credit rating status and employment status would be much better.
Inniss is a fraud and Persaud, Inniss’ and Mia’s friend is a bottom feeder.
The mind simply boggles. The government continues to do as it pleases. The people have already begun the fete fever whipping up Crop Over celebrations. Then it will be Independence and the grand 50th celebrations. In no time at all the fervour of Christmas shopping. And the beat goes on, and on and on. The mind also continues and will continue to simply, boggle.
That’s what I figured because that’s what the numbers re employees and tax rates suggested.
I have a best friend who worked with one of those Canadian off-shore companies for a very short while. They brought in a white Canadian to put over her and wanted her to train the Canadian. She refused. They pushed. She resisted. She finally left because she was one of the two who joined me in turning our backsides to the Queen when at QC in the seventies. She don’t play that.
It’s Crop Over? Don’t despair! My son doesn’t even know or care about those things. He has friends of similar ilk. There will still be some to carry the flame of hope not to be confused with the covenant or the brek- up trident. Be patient! a change gonna come. It has too!
You all do realise that it was RICH Canadians and Canadian politicians that CHOSE Barbados to create a laundry for Canadian clothes.
Remember PM Paul Martin?
For the record, Avinash Persaud is a born Bajan. He is a Barbados Scholar. His mother tongue is English. Could we please concentrate on the issues. These ad hominem attacks detract from the relevant points we are making.
David, the links I have read go way back to the beginning of the Private Sector led fiasco that was Four seasons. I have read of Four Season when it was spearheaded by one Pemberton et al. When Mia Mottley was associated in a legal capacity, although she could also have been a lot closer. When the Williams’ were 0art of it. When very prominent people paid down on the villas and then backed out, or were forced out by the world financial crisis.. (Remember that?) I read the advertisements produced by Pemberton et al. I was very aware when they brought in a large number of Chinese without immigration approval, and I was aware when they destroyed the trees at Batts Rock. I wrote a tribute to those trees, which was published in the Nation. I don’t have to read the links you are referring to.David thompson sought to rescue the project because of the potential benefits to Barbados’ tourism, and Professor Persaud was recruited to try and get investors interested in the project. For the information of you and DD, the DLP sought to resuscitate a drowning enterprise. The episode is not yet over. Patience, it may yet recover, despite all the negativity and obstruction.
IBC’s were a form of “international aid”. Easier than the costs of building infrastructure which were full of corruption laden issues. So dump the aid packages, and give them tax dollars.
The issue was when so many jurisdictions become treatied, what was the true value? Furthermore, within those places which were more than a partially inhabited rock, it begged businesses local to those sovereign nations to set up on another rock, and decrease their taxes payable by many percentage points.
Said it before. The global tax system is broken. The only jurisdictions benefiting either have no tax base to begin with, or have been able to capture a large number of those offshore companies to outstrip their losses of local tax income.
The larger nations always benefited by having their corporations with global reach pay tax on profits generated beyond home borders at home. Then came multiple accounting methods to transfer that income/profits to somewhere with lower tax rates. Then you heard them crying.
The Canadian / Barbados arrangement is more than just a matter of tax evasion. The original arrangement was a way to enable Canadian companies to reduce their tax burden and thus be able to compete internationally with more cost efficient multinationals.
Thus, such as Gildan used this to good effect, to produce and sell products internationally vs other brands.
However, some smartalecks then used the treaty loopholes to benefit themselves, when they are not producing and selling internationally.
Those are running the tax line.
It would be wise for the Canadian authorities to be careful before acting and possibly throwing the baby out with the bathwater.
Do you really think that some of their companies can compete in production with US and China companies without this benefit?
Canada has introduced measures to combat tax evasion and even ‘aggressive tax planning’, probably meaning that even if it cannot be assessed as ‘evasion’ they will go after anything ‘on the line’. http://www.tax-news.com/news/Canada_To_Introduce_New_AntiAvoidance_Measures____70956.html
Their first stop is Isle of Man.
Note the article’s multiple reference to the expansion of the budget and manning of the Canada Revenue Authority, with the aim to audit more files and more extensively.
Basically, IF international business such as is in Barbados survives, it will ONLY be those companies who demonstrate a fully productive local company, selling products / services to an international base, as was originally intended by the original treaty arrangement.
I am therefore of the opinion that the international business sector, as far as Canada goes, will be significantly reduced in future. While some who operated may have been ‘within the boundary’ of the letter of the law, I suspect that CRA will push the point of the ‘spirit of the law’ and this is where the issue lies.
However, there is always the danger that the favourable legislation will be reversed, as both the Bloc Quebecois and the Canadians for Tax Fairness are pushing for.
Note that this matter has become a media bandwagon, with the above article being from the CBC.
Of course, one must not assess that Canada will just wipe the beneficial legislation off of the table, without commensurate behavior by other major jurisdictions.
And that is really the key that will determine the direction of this issue, ultimately.
Canada may ask US, UK, Germany et al ‘what are YOU going to do for me, lately’?
With Vermont, Delaware etc ad nauseum, being tax havens within a juirisdiction, what is the issue with island nations as international business centres?
Why should Canada lob off its foot just to suit others?
Nevertheless, there is the internal Canadian pressure mounting.
Reality is that any large reversal of the established industry and thus reduction in companies and jobs here, will have significant, and I mean significant, impact on our foreign exchange earnings.
You may doubt it, I suggest not.
Surely the technocrats in the offshore sector will occupy the officials at Revenue Canada to avoid the baby being thrown under the bus? Agree with your comment however Barbados authorities can’t say it has been unexpected.
Hants…that is why the island should be much better off…if the bajan ministers were of the ilk who cared for the island and people, were good negotiators and negotiated for the island and people and not just for themselves and the consultants they hire……., the percentage from 79 billion in laundered, tax evaded money in one year multiplied by the 15 or so years companies world who used the island……there would not now be so much financial ruin that the government does not now know how to fix…their own stupidity and selfishness have come home to rooost.
Do you think that could ever happen in Switzerland…they parlayed their offshore banking sector using the secrecy rules back then into a wealthy country and direct democracy ensures the people could never be disenfranchised or disadvantaged….and that is despite they now having to grant international authorities access to information on those who use the services to commit crimes…if ya going to be a prostitute, at least be an expensive prostitute where your people are the ones ending up wealthy, benefiting from every tax evaded or laundered dollar….and not just the ministers and consultants.
The ministers of Barbados are a bunch of idiots decked out in monkey suits.
Let me add the years that Canadian companies have been hiding money more than any other country..on the island….
…..the percentage from 79 billion in laundered, tax evaded money in one year, 2015, multiplied by the 36 years Canadian companies have been hiding their money on the island to avoid CRA…less the amount they would have earned in those years’ dollars… multiplied by the 15 or so years companies worldwide who use the island have been hiding their dollars….why the hell are the local ministers still accepting pennies to the billions….
……that foreign exchange cannot be making much of a difference if the central bank keeps saying their foreign quota is in trouble.
Bernard…everyone knows Persaud went to QC….it does not stop him from being a bottomfeeder, all the ministers on the island, were birn and bread, attended secondary school on the island, despite that, they are treacherous and treasonous to the island and people….so what’s your point.
Are these Corporations involved in illegal activity? One prominent Bajan (who shall remain nameless) not involved in politics but is a harsh critic of the Gov’t tells me that these offshore entities are a boon to the Barbados middle class because they created a lot of jobs. If wunna think things brown now wait till they are forced out.
Canada is also looked at as a tax haven it benefitted from what is called “tax Inversion” when Burger King bought Tim Hortons and moved its HQ to Canada to benefit from lower Corporate taxes.
They should not be forced out but made to pay a higher tax rate in Barbados….8-10% is better than paying 25% of your earnings in Canada and 30-35% in the US and other cuuntries…with pressure being brought to bear through international investigations re Panama Leaks….renegotiating an upward amount is not rocket s…….cience,…they definitely do not want to return to their domiciles…to pay the piper AND back taxes..particularly those breaking the law, they would much prefer pay another 5-7% in taxes and let the headache dissolve.
Have none of you critical thinking or negotiation skills.
Well Well & Consequences June 19, 2016 at 7:44 AM #
What they may or may not pay as a percentage in Barbados is no longer the issue. The issue is simply:
Is the business actually being conducted wholly and in substance in Barbados.
If it is, then it will fall under the treaty provisions as they were intended. If not, and if they are a subsidiary of a Canadian holding company, they will be liable to the full rate of corporation tax in Canada, irrespective of what tax Barbados charges.
The percentage of taxation allocated locally is irrelevant to that question. While yes, a higher percentage would be nice for Barbados, the point is moot.
The only other issue that is relevant now, is whether such as the Bloc Quebecois and Canadians for Tax Fairness will get their way in having beneficial tax legislation removed.
In which case, it is all over.
You clearly do not understand the issue.
And what Sargeant June 19, 2016 at 7:34 AM # said is true, I have refrained from saying it for various reasons. Do read what he said again.
Now it is said, yes, if the international business goes wholesale, you are looking at an economic crisis of monumental proportions for Barbados.
Barbados the domicile was warned about what is unraveling today and somewhere in the media Minister Inniss’ statement can be found expressing concern a few years ago.
Interesting to see Persaud working with the business promotion team given the hail of criticism he has had directed at him by Inniss and this government.
Offshore Tax Havens
Corporate Canada Poured More Than $270B In Tax Havens Last Year
CP | The Canadian Press | Posted 04.28.2016 | Canada Business
Read More: Business Video, Video, Tax Havens, Tax Havens Canada, Offshore Tax Havens, Canadians for Tax Fairness, Canadians for Tax Fairness Tax Havens, Canada Tax, Canada Tax Havens, Corporate Canada, Corporate Canada Taxes, Canada Business News
Read Whole Story
Crusoe…that is what the international investigations are now ongoing for…to determine, there will be reports to see which companies are genuine offshore entities for lower taxes….from the evaders, money launderers, drug and gunrunners….yall keep forgetting there are ongoing investagions across the globe…no one can wait for the local governments or attorneys to make these determinations…….THEN we will be able to separate the sheep from the wolves from the dangerous criminals.
You cannot deny that an 8-15% rate would help the Barbados economy now can ya….if that issue is moot, then why are they even in Barbados to begin with, you cannot only defend whom you may represent…what about the earnings to the island,
Of course I understand the issue….Canada has to protect it’s income base..if it’s all over it would be the fault of the criminals involved and the local politician’s refusal to make the most of a 36 year old opportunity. …but despite what you say, some of these entities, like Loblaws owned by a certain Canadian family would be allowed to continiue, they may just have to pay more taxes in Canada as well….you have no clue how well I understand the dynamics now playing out.
Again…any monumental crisis going forward for the island was caused by the 2 penny whores for ministers who are too weak and never made the most of a 36 year old opportunity to benefit country and people….for which I have no damn sympathy….so let them suck it up.
ce que l’enfer qu’ils pensent qu’il est , ils ont refusé d’utiliser judicieusement cette occasion de 36 ans de bénéficier de leur propre peuple , une coupe de la chaîne du nombril devrait les amener près et personnel à la réalité … comme ils le méritent …. bourriques .
Crusoe. ..of course I understand only too well what is unraveling, you cannot dismiss the fact that a 8-15% raise would benefit the island, you cannot just look at the companies whom the lawyers represent and the fall out for them….then they should not be in the island to begin with.
The ministers had a 36 year opportunity to benefit the island with the Canadian offshore arrangement, they misused and wasted the opportunity, they will get no sympathy from me…..wasted time is wasted time.
I do not see all the companies being made to leave, despite what you think….certain companies like Loblaws owned by a Canadian family might be allowed to stay, though may have to pay some taxes in Canada…but should also be made to pay some more in Barbados, what’s the use of them being there if the island is not benefitting significantly.
You have no idea how well I understand the dynamics of what is unfolding…what is of great concern to me are the greedy lawyers who are afraid of losing their handsome fees and care less about any benefit to the island.
They should have used the few brain cells they have left that may not be self-serving, instead they only look out for themselves snd their useless consultants….it serves them right and it’s a good thing….maybe now they will stop being just parasites to the people and island and actually get off their lazy asses and do some work.
The word DIVERSIFY in english means, look for something else to do, it cannot be always about bribes, kickbacks and campaign financing for politicians. ..the island survived well enough before offshore companies……it’s a brave new world.
In all of that mess, those who have a personal stake in the offshore sector keep forgetting and refuse to acknowledge that Canada has to protect and preserve their income base, Barbados is not the only jurisdiction where Canadians hide from paying taxes…Canada has a population of over 34 million people and a recent fire in McMurray which caused the government to now have to support all the people and their entire families who lost housing in that city, for how many years until they manage to get back on their feet.
Barbados has a population of a mere 275 thousand people and weak, lazy politicians who act like it’s 270 million people. Again, it cannot be always about government ministers and their bribes, kickbacks, campaign financing, absorbitant fees for useless consultants, absorbitant fees for attorneys who represent offshore companies and little benefit to the country..
In the 3 years that Inniss has held the portfolio, he knew the end was coming, yet he sat on his ass and did nothing to soften the impact for the people…in this case….cry me 2 rivers…lol
Prostitution can be very deceptive.
It works wonders for a while – when you are young and unspoilt, but it tricks you into not preparing yourself for long-term success – or even survival.
When reality hits, you have no marketable skills, no reputation, poor health, and everyone is repulsed by your personal hygiene. Then the Johns who ‘kept’ you, all run off to fresher unspoilt pastures
The classic story of the homeless street woman.
Should be an interesting 50th anniversary….
@ Bush Tea June 19, 2016 at 10:15 AM
Brilliant analogy to commemorate 50 years of being in the game of prostitution.
Fits in neatly with your description of Tourism being a sophisticated form of national prostitution.
Ain’t no wonder the likes of Butch of Sandals are in on the act and now the Chinks of economic Pirating pissing over the Castle walls of shame and laughing at brass bowls below.
The offshore sector although a challenge to measure its full impact on the local economy is responsible for significant contribution to the economy. Any number of studies are available to support. Direct benefits can be seen in rental of properties, the cadres of accountants, lawyers, bankers and related professions, the hospitality sector i.e. hotels, restaurants (tourism)and last but not least the retail sector. We can debate teh need to diversify the economy however one must be fair to explain the benefits of the international sector to Barbados.
I dont know if Crusoe thinks the Canadian government is retarded.
Those billions have to be reined in and most of it returned to CRA…..good gracious, what kind of education is being delivered in Barbados.
@ Bush Tea,
Quite. I have refrained from posting exactly where this is going, but Sargeant has opened that reality for readers, so frees me up somewhat.
Reality is just as you say, Barbados’s economy is in serious ‘ducks-guts’.
If the Bloc Quebecois does not have its way, a number of genuine companies may survive, but even then, with the loss of the others who have been playing the tax line, the economy is going to take a serious lash.
As for that ‘5%’ contribution that is noted above as an official statistic, that is a laugh. The international business sector has much more of a significant impact than that, to the Bim economy.
It is serious indeed.
Homeless, as you say, I see a Venezuela type situation. As you know, yet Venezuela has oil.
Most do not realise how serious it is.
Even ‘Well Well’ with her rantings about diversification, again demonstrating her complete lack of appreciation for just what a complete void will be left in the economy as a result.
Reality Barbados economy was in a shambles from way back in Bree’s time. IBC’s have provided the void filler since sugar had collapsed for BIM and tourism was in decline.
The boom years gave a false sense of security, with the added bonus of IBC’s pumping serious forex in.
Boom years gone, with the IBC’s reducing as we speak, things are perilous.
Reality is ‘diversification’, to fill such a void, as Well Well is so arrogantly postulating, is laughable.
She is clearly a type of ‘ac’, just with different political goggles.
And my reference to a Venezuela type scenario is serious.
The ‘solution’ , if it can be called that, is so much more complex and long term than that alone.
Well Well & Consequences June 19, 2016 at 8:38 AM # ”..the island survived well enough before offshore companies……
Actually, it did not, the economy was going from one short term crisis to another.
”it’s a brave new world.”
Nice words with no substance. Things in the real world are more than little ditties.
If memory serves the local economy transformed from Agrarian to Services in the Tom Adams era when LOME II signaled the decline of sugar. It essentially filled the void. The world economy has since shifted with North to South capital flows drying up for reasons we now very well.
And everything has it’s season…that is why politicians are paid a salary to fill the void and diversify to meet the changing times, which will always be changing.
No one is looking at some disaster hitting the island and guess what, the same leaders will be looking to Canada for aid, but guess what, Canada will not be able to give any aid if their treasury is short 270 billion dollars…..because their citizens are hiding a chunk of it in Barbados.
Crusoe…the politicians are responsible for changing with the times. There are many countries around the world who do not depend on offshore companies or tourism and yet still survive, they are not anamolies.
If those who are responsible use their brains for country and not only for self…they will find a way….or step aside and let people with real intelligence…chart a way forward to progress, I have no sympathy for the politicians, they are too corrupt and selfish…and have been for decades.
Many believe that is the main problem causing their mental block more so than the challenges they face from larger countries.
Crusoe…with all my arrogance…have you read the AUDITOR GENERAL’S REPORT.
Talk to me again when you do….and read his reports for the last 10 years and then return and rant to me.
Wholesale corruption caused the Venezuela fall…and so will the wholesale corruption on the island cause Barbados’ fall…I know you will not factor that into your rant, but all the money that has disappeared from the treasury over the last 30 years, is a hell of a lot more than 5%…so now ya can cry me 3 rivers.
All the badly distributed government contracts.
Do not look for any sympathy from me when others have used their greed, selfishness and cirrupt minds to bring the island to it’s knees…exactly who else would you blame…cant blame me…I was not there for any of those greedy years.
Why should Canadian pensioners and taxpayers have to pay for your government’s. ..both governments….stupidity.
Wholesale corruption also caused the collapse of Greece.
CORRUPTION ensures that no matter how much economic activity goes on there will NEVER be enough. There will NEVER be efficiency. There will never be spending in the right places or in the right amounts. SOOOO…. the more economic activity and investment the MORE the Auditor General will have to write about. Nothing will EVER trickle down to where it’s supposed to go. The issue is not one of off shore companies and how much we need them. The issue is one of CORRUPTION.
And that is MY RANT.
Good comment, corruption will do it every time. How do we get the policymakers to make the structural changes required? Our system of government continues to fail because our very educated population see no need to participate.
Some people are in the box that Bushie’s albinos put them in.
You are correct. When one depends on tourism for one’s survival one is like a prostitute. That’s what I always say.
You and I are only women. We can’t debate big issues about the economy and such. (But really it’s just that we don’t care to.) Because as women we know that often it is not about how much you earn but how you spend it. We know women who could make a penny seem like a pound. And we know people who could make a pound seem like a penny. What we have is gross inefficiency and corruption causing a pound to seem like a penny.
I am a little slow in the brain today because I was up too early watching Ghandi. I read somewhere this week that a revolution never starts from the top but from the bottom. Usually it takes a charismatic leader (not always from the bottom) to mobilize the people. We have seen that before. I believe that is the only way it shall happen. Not much is going to change until the people demand change. The people are not going to demand change until somebody can convince them that, if they follow him/her, change is possible. So all my poor self can do is try to identify and raise up a leader. And I am working on that.
See when things became a little better for us we assumed that the fight was over. We assumed the rest would automatically follow. We are now realizing that the process was only half done. It is hard now for us to be militant because it is hard to rise up after such a long time sitting. Especially since we can now at least afford nice chairs.
By charismatic leader can we assume you mean in a political context? If such is the point it appears we will have a problem in Barbados for the foreseeable future.
Donna,..it’s basic commensense that none of these legal Einsteins want to acknowledge. Our parents always told us to save for a rainy day, they always told us if you have 200 dollars, put down 50 dollars and spend 150 dollars on necessities only…buy what you need not what you want….do not waste…..because wsste not…want not.
So now ya have politicians with MBAs and all types of fancified degrees, unable to apply this simple concept and logic to a treasury containing.billions of taxpayer dollars…they give ALL the taxpayer funded contracts to one small group of thieves, they pay no attention to the majority who elected them…it never enters their minds to use excess funds over the last 3 decades to fund majority farming programs across all the parishes that would allow the people to grow their own food, when the population can feed itself, the rest is a cakewalk…what the politicians did instead was pocket the excess money for themselves and grew yardfowls.
Took bribes from business people to import garbage to sell to their own people. That alone killed any trickle down effect, but built a successful parasitic environment where the people have been reduced to consumers and are helpless to break the cycle.
Now that the politicians don’t know what to do cause all the greed, corruption and stealing have reached a point of no return…the cash filled days of free money is just about over…. here comes Crusoe wanting enlightened people to agree that the Canadian government should not protect their own interests, but should allow their corporate citizens to avoid paying taxes in Canada…so that politicians in Barbados can continue their corruption and disenfranchisement of their own people….unimpeded.
But look at my crosses. ..lol
I worked in offshore sector all my life. And after the economic crash starting 2007/8, many NA & European countries have been putting pressure on their companies doing business in LOW tax havens such as Barbados. While some companies still keep coming, many have left due to this pressure and change in legislation in their home countries making it more attractive to do business. Simply put, Canada want her companies to invest more in Canada, to provide more jobs in Canada, and to contribute to the tax pot.
The offshore sector can be very lucrative for the employer. Whilst many fall in a tax-free bracket or do not pay much tax at all, they provide so much more benefits directly and indirectly. Lawyers get a lot of work, professional service companies e.g. PWC/E&Y get a good piece of change. Car dealers, couriers, persons/companies renting homes for expats and office space for the business get a good piece of change. Some companies pay very well compared to other local businesses. I got close to 6K per month plus all benefits you could think of. And I was non-qualified Assistant!
Both governments in past and present has been trying to keep Barbados name clean and not to be labelled as a money laundering country. Most of the early ground work in that regard was done by past Senator Lynette Eastmond. Kudos to her. But what can we do? We will still be call a tax haven, or some other unscrupulous name because Canada wants more tax! Cayman Islands and Bermuda are often on the lips of many NA & Euro politicians but it doesnt seem to hurt them. There international business sectors are VERY much more liberalised than ours.
Commonsense does dictate that after corporate citizens have hidden their taxtes in low tax jurisdictions for 36 years and have built up billions of dollars in savings, it’s prudent, practical and patriotic to return a fraction of those savings to where they are domiciled to help rebuild their economies…Canada has had 2 recent shocks to it’s economy that rocked it’s dollar, now is the time those companies can return and create jobs.
And let the lazy ass politicians in Barbados grow some character and actually do some work to grow their economy and look after their people and not just the minority thieves.
And as far as foreign exchange goes I don’t think we should look at the gross foreign exchange but the net foreign exchange. With these fellows tastes how much of their foreign exchange goes to importing goods?
Yes David. We are in trouble for the foreseeable future. We will tinker with an engine that needs overhauling until somebody like a Clement Payne captures the imagination of the people. All regular folks like me can do is try to create the environment where the people will at least be aware that they are being shafted and what needs to be done. And nurture any bright spark that appears and keep the flame burning. It isn’t going to change in any hurry.
Donna…..the problem with the politicians as I said in another link, they live in the now, no 50 year plan for the generations who will be alive after they are gone….. for some reason that basic instinct for survival of the black race never forms part of the black man/woman’s long term plan….their short term destructive motto is…..have plenty foreign exchange gross or no….WILL SPEND…….
………treasury full of money in the billions…do not look for long term investments to benefit the people like agriculuture, oh no, that will take too much money, instead….look for the nearest Maloney to build big concrete structures, or wait for the Bizzy call he is sure to come up with the latest scam to milk the treadury, or search out Bjerkham to see how much taxpayer’s money he wants to do business…..the only thing politicians of both political parties try to do is ENRICH MINORITIES……and leave the majority hanging all the time…..they have no shame.
Toronto Star Editorial June 20, 2016
Expensive loophole underscores urgent need for tax review:
When will the traditional media in Barbados start reporting on the looming international risks, instead of posting GIS news releases or other self-serving Mnisters’ statements as news items, such as
Barbados Advocate – BUSINESS MONDAY June 20, 2016
Recent promotion expected to boost international business
BARBADOS can look forward to more international business originating from Canada, following a recent promotion in that country.
Donville Inniss, the Minister of Industry, International Business, Commerce and Small Business Development, said the promotion was a success, and that Barbados is still a preferred place for Canada, in terms of international business.
He spoke to the media after his return from Canada.
“I recently led a promotional mission to Halifax and Toronto in Canada, as part of Invest Barbados promotional efforts, and I would say it was a great success. Barbados continues to have its challenges with what is taking place with the International Business and Financial Services Sector,” said Inniss.
However, he told the media that Canada remains Barbados’ main source market. He noted further that all indicators show that last year Barbados would have managed over 75 billion Canadian dollars in Investment through Barbados. “I don’t think sometimes we as a nation recognise the importance of that relationship, and we can build on it.”
The Minister explained that while in Halifax and in Toronto, he took the opportunity to meet with persons attached to major law and accounting firms, to inform them about what Barbados has to offer, and to “remind them we are still open for business, and to address any concerns that they may have”.
He also attended a seminar in Toronto, and left with the clear understanding that Barbados is still the preferred location of choice for Canadian entrepreneurs seeking to go global.
“In the International business sector, we will continue to roll out the right kind of products and services,” Inniss promised.
He also stated that while there are issues with regard to the Panama leaks and other rumblings in this area, the message must go forth at home that Barbados is a well-regulated jurisdiction that seeks to attract and retain businesses of substance, and the Canadian market remains critical to us.
He said the last couple of days in Canada were a success.
“We saw a keen interest in Barbados and how Barbadian companies have been helping Canadian companies to go global, and I’m satisfied that once we keep at it, this sector will grow leaps and bounds.” (NB)
“We saw a keen interest in Barbados and how Barbadian companies have been helping Canadian companies to go global by avoiding paying Canadian income tax , and I’m satisfied that once we keep at it, this sector will grow leaps and bounds.”
Due D…it’s a commonsense thing but the legalmeisters on the island are yet to catch on…lol
Donville has not yet realized that while CRA will not entirely stop offshore companies from building billions in savings in low tax jurisdictions. …a chunk of what has been saved from paying taxes…has to be returned to Canada…after 36 years of savings using low tax jurisdictions. …they must now be reined in and very tightly controlled.
It does not mean that new companies will not be allowed to sojourn into offshore Barbados to build up savings…but it means it will not be a free for all…nothing complicated about any of this….imagine saving 75 billion in taxes in 2015 alone, it’s not like these dudes are going to give Barbados that money, they already negotiated for pittance, their bad….a chunk of that has to be repatriated.
And that is what Crusoe fails to understand, craving all the companies will ensure they lose all…..let Canada get it’s fair share…more will come.
And as I have said repeatedly. ..it’s the minister’s responsibility to negotiate decent and fair tax rates that will benefit the island significantly as a whole…stop thinking of self…and I cannot for the life of me understand why offshore entities which are merely guests on the island, are funding election campaigns, that should be banned, there are enough problems with the locals crooks in the form of the Bizzys, Maloneys, Harris’, Parris’ etc…there is no need for addional corruption, there is already too much of that….save ya taxes and run along, why get involved with the local pit of vipers.
Oh Canada eh!
It’s greener and cleaner, there may only be a problem if there is a spike in pollution, then they can shut it down…unti then, happy greening…lol