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Ryan Straughn
Ryan Straughn, Minister in the Ministry of Finance
Minister of Finance
The Honourable Prime Minister Mia Mottley, Minister of Finance

Prime Minister Mia Mottley delivered a ministerial statement last Tuesday to amend the local tax structure in the context of constant changes from the international environment to avoid resultant pressures. The nature of the local economy means government has to be compliant with tax and related legislation to avoid being blacklisted by the capitalist north.

The following is a query received from BU family member John A about the new tax system to take effect from January 2024.

With Section 2 4 and 5 payment of corporation tax monthly should prove a challenge. Some companies may make money for 4 months of the year then lose for 8 months in the tourism sector for example. That’s why corporation tax is based on 12 months of business.

Many retail businesses see December recording the highest sales and revenue of the year. It is also the last month of the year. If for example 50% of profit generated comes from December sales, where is cash flow going to come from to pay 1/12th of this in each month for the Q1 of the same year with cash flow already stretched covering normal operational expenses in your lowest revenue period?

How is Section 2 of the change going to work?

Here is EY’s communication of the change:

Barbados-Announces-Pillar-Two-ProposalsDownload

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124 responses to “OECD continues to flex on SIDs”

  1. David Avatar
    David

    Recent IMF staff report

    https://www.imf.org/en/News/Articles/2023/11/13/cs111323-barbados-staff-concluding-statement-of-the-2023-article-iv

  2. Hopi Avatar
    Hopi

    Is Minister Straughn’s incoming law to standardise property values for insurance, land tax sale a part of the New Structural Reform?

    The Central Bank will be given autonomy… meaning that it has been under external influence/control? Will this autonomy be printing its own currency or is this autonomy merely to set interest rates in accordance with IMF’s/WB’s demands?

    Doesn’t the Central Bank not see a moral need to unpeg Barbados $ from a ‘BLOODY’ $. A $ mired in blood, guts, gore and theft as we see right before us today.

    How does the US get to print $$B and give it to Israel to run their shithole murderous nation and Barbados (a righteous, ‘GOD’-fearing nation) stay pegged to that blood?

    Why can’t Barbados return to the Sugar Cane growth as a source of income?
    Seek out nations outside of the EU and US for markets. Maybe China, Russia.

    What has made “Barbados highly vulnerable to climate change” when the rock called Barbados has long existed before there was a Bajan?

    The OECD, a Eurocentric gang HQ’d in France, a group of which Barbados is not a member because Barbados has not met its high standards of a High Income Generating nation nor does it possess a High Human Development Index, yet Barbados is in obeyance to this gang, being one the the first nations to fall in line with a monthly tax compliance, while others are running on their own time.

    The OECD’s home country France, is a criminal state which cannot be held to any international law, yet Barbados obeys rules set by France.

    Barbados, it is high time to decouple from the US and the EU.

    The truth and fact is that the ‘RULING POLITICAL CLASS’ of Barbados is nothing but a servant class to the Globalists Gangsters. They are not bright. They possess no new ideas to lead the nation into true in-inter-dependence.

    If you were to enter a burning house with this gang on fire, pls don’t piss on them.

  3. Artax Avatar
    Artax

    David, perhaps there is a sinister motive behind the new land tax legislation. Read a letter a guy and other residents of a particular area in Christ Church, received from the Planning & Development Department, informing them that a propsal was made by a certain company to construct a luxury hotel and swimming pool on a specific plot of land in the district…… and invited them to visit PPD’s office to view the building plan, where they could raise their concerns or objections to the proposed development, within 14 days of receiving the letters.

  4. NorthernObserver Avatar
    NorthernObserver

    https://www.cbc.ca/news/world/cyprus-leak-russian-oligarch-icij-1.7028531

    The ICIJ strike again. Note Cyprus is not grey or black listed!!

  5. Artax Avatar
    Artax

    What I found hilarious about that situation is the guy’s letter I read, is the owner of the land on which the proposed hotel is to constructed. Apparently, unknown to him, the BRA subdivided the land and sold the largest lot to the developers. I don’t want to go into too many details as yet, but among the reasons given for selling the land were land tax arrears and ‘they did not know someone owned the land.’ Obviously, this was ‘planned and developed’ by people with ‘inside information.’

  6. David Avatar
    David

    @Artax

    We know how decisions are influenced in Barbados. The average Joe is clueless.

  7. Sargeant Avatar
    Sargeant

    Some serious accusations by the head of the BHTA, why would the Unions bite the hand that feeds some of its members? A decline in tourism would put union members on the breadline and if the BHTA’s claims are correct the unions are playing a losing game.

    https://barbadostoday.bb/2023/11/15/bhta-accuses-labour-movement-of-smear-campaign-that-could-damage-tourism-sectors-reputation/

  8. David Avatar
    David

    @Sargeant

    Union membership is on the decline. A union is a business, its main revenue driver is member dues.

  9. Artax Avatar
    Artax

    David, perhaps the unions have decided its time to ‘speak out.’ Why would a union, the two heads of which are former and current members of parliament, would seek to sabotage an industry they know is of vital importance to the Barbados economy, for the purpose of soliciting new members? For years hotel employees have endured nonsense from racist, white expatriates hotel owners hire for management positions. Remember, the BHTA represents the interests of owners and not employees. The Association’s president should let Barbadians know why are hotels, ESPECIALLY Sandy Lane, are unable to receive suitable applications from Barbadians for management positions, but host ‘job fairs’ at which hundreds of Barbadians are forced to ‘line-up’ to apply for jobs in front office, pool & beach, gardens, housekeeping or security.

  10. David Avatar
    David

    @Artax

    The issue is mot about speaking out, it is preventing facts to support. All f what is being vented in public should be addressed at the bargaining table. If the unions have the support of their members it should not be an insurmountable problem.

  11. Frank Avatar
    Frank

    records show Quebec-based drugmaker Pharmascience routed its European sales through a Cyprus subsidiary, which then paid intellectual property royalties to a Barbados subsidiary — in a move that legally avoided at least $4.6 million in Canadian taxes for 2014, 2015 and 2018-2020.

  12. Sargeant Avatar
    Sargeant

    @Artax
    With regards to the hiring of expatriates to perform jobs in the tourism sector, Sandy Lane is only doing what impotent Gov’ts is allowing it to do. Everyone knows that this state of affairs doesn’t pass the smell test but no one in authority has the balls to do anything about it.

  13. Bush Tea Avatar
    Bush Tea

    Everyone knows that this state of affairs doesn’t pass the smell test but no one in authority has the balls to do anything about it
    ~~~~~~~~
    Sarge
    Most in authority don’t have ‘balls’ to begin with…

  14. David Avatar
    David

    Does this mean Barbados is a tax haven? Does it mean Barbados will perennially be found on the grey list? Once we play in this space it will always be a challenge to deal.

  15. David Avatar
    David

    @Sargeant

    Those that pay the large bills and have great influence will be permitted to play the tune.

  16. David Avatar
    David

    In fact, isn’t it the same in all capitalist societies? The challenge we face in Barbados, tiny republic that it is, relationships often trump governance processes.

  17. A Good Song Avatar
    A Good Song

    “Those that pay the large bills and have great influence will be permitted to play the tune.”

    All people should be allowed to play their tune without any objection or any exception with straight through processing in my humblest opinion David King it’s the small islands developing states way of life in case you didn’t know

    Penny for my song..

  18. Hants Avatar
    Hants

    Top 100 in de whole wirl.

    https://www.nationnews.com/2023/11/16/mottley-among-time-100-climate-leaders/

  19. NorthernObserver Avatar
    NorthernObserver

    What it means, is we have a whole bunch of people employed and they need to show they are doing something?
    And you know the blow back from including some places, is too much. The Caribbean island nations are low hanging fruit. With minimal protection.

    That Cyprus fails to make any list says it all?

  20. David Avatar
    David

    We know there is heavy concentration of Canadian funds in Caribbean offshore. This might save us.

  21. Sargeant Avatar
    Sargeant

    @David

    The Gov’t touts its spending on free tertiary education and its commitment to training people for the hospitality industry, what’s the point if graduates can’t even qualify for jobs in the major employment sector in the country?

  22. David Avatar
    David

    @Sargeant

    Agree with you but it is a two edged sword, government accepts a situation where it prostitutes itself for the investment dollars.

  23. David Avatar
    David

    Barbados, Saudi Arabia finalise deal

    Barbados has finalised an air services agreement with the government of Saudi Arabia.

    Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds yesterday signed on behalf of the Government, while Minister of Transport and Logistics Services, Saleh bin Nasser AIJasser, signed on behalf of Saudi Arabia.

    The first CARICOMSaudi Arabia Summit was held in Saudi Arabia on Thursday. The process for finalising the agreement began last year when Minister of Tourism and International Transport Ian Gooding-Edghill, along with Saudi Arabia’s Minister of Tourism, Ahmed Al Khateeb, initialled the draft agreement.

    Finalising this agreement is a step towards enhancing relations between the two countries and provides an opportunity for Barbados to expand its global reach. It will also assist Barbados in developing an international aviation system.

    Barbados and Saudi Arabia established diplomatic ties on December 17, 2007.

    (BGIS)

  24. David Avatar
    David

    Govt backing UN move

    by SHAWN CUMBERBATCH

    shawncumberbatch@nationnews.com

    BARBADOS IS SUPPORTING a push for the United Nations to help bring more “transparency and fairness” in international taxation.

    However, Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds said Government was adopting “a parallel course of action in order to avoid a pointless and unhelpful conflict between ourselves and more traditional international economic regulators” like the Organisation for Economic Cooperation and Development (OECD) and the European Union (EU).

    This was because “the practical reality . . . is that international tax regimes are a specialty area, and the technical aspects of the necessary work and the relevant specialists are not as yet established as being well embodied and deployed in the UN system”.

    Symmonds added: “Getting to that stage is going to be a timeconsuming process. Meanwhile, in the interim, while the UN as a whole seeks to make progress on the issue, the political process of setting new rules has been pushed by the large industrial powers of the North Atlantic region especially.”

    In the face of reported strong opposition from some OECD countries, UN member states could vote this week on an Africa-led framework convention intended to ultimately shift global tax rule decision-making from the OECD to the UN.

    Caribbean economist Marla Dukharan, acknowledging that Barbados was a supporter of the move, said it was “now or never” for the Global South, especially the most heavily OECD-assessed countries – the Caribbean and Pacific Islands – to “show the world that you can stand up to injustice, further your decolonisation journey and break free of the OECD”.

    Global taxation debate

    Symmonds said Barbados was completely committed to the multilateral process “and believes that there is a role to be played by the United Nations in helping to bring about a greater degree of transparency and fairness in any international process, including that of international taxation.

    “As a small state we believe that we ought to have a voice in the global taxation debate. We also believe that our peculiar circumstances of underdevelopment and vulnerability . . . should be factors and circumstances that are addressed in any decision-making process so that distinctive and differentiated treatment can be accorded to us and to other countries in similar situations of vulnerability. The UN process ideally provides the avenues for that kind of discussion and determination,” he stated.

    The Senior Minister indicated that while Barbados was in favour of the UN’s involvement in global tax matters, the country would also be fulfilling its requirements already committed to under the OECD and EU process.

    “On November 7, our Prime Minister went to Parliament and issued the Ministerial Statement that brought our tax regulations into alignment with the Global Anti Base Erosion model rules.

    “That action of policy realignment by our Prime Minister was designed to enable us to avoid the trauma, potential loss of business and damage to the country’s reputation that would arise from our inviting an OECD listing of Barbados as an ‘uncooperative and non-compliant jurisdiction’,” he said.

    Goalposts

    “The policy realignment put us in step with the more than 50 countries which have already started to adjust their domestic tax rates in compliance with the OECD G20 requirement to implement the new rules. These countries include OECD members like Japan, South Korea, the United Kingdom and the European Union’s members.”

    The minister said, however, that “notwithstanding our compliance . . . we believe that this persistent shifting of the goalposts is a major issue which has been negatively impacting us for too long and it is a matter about which there are a number of important principles at stake.

    Decolonisation opportunity

    “We believe that there is a necessity to have this ongoing matter of international tax regulation transparently and fairly discussed, in a setting that accommodates and takes into account the voices and circumstances of all, including the most vulnerable and the smallest of states. For that reason, Barbados welcomes the possibility of the involvement of the United Nations in this process,” he said.

    Dukharan called the push for a UN tax convention “the decolonisation opportunity of a lifetime”.

    “I call on the governments of St Kitts and Nevis and Suriname, who have for whatever reason opposed the UN Tax Convention, to please reconsider their rather regressive position,” she urged.

    “I also call on the governments of Dominica, St Vincent and the Grenadines, St Lucia, Jamaica and Haiti to indicate their support for the UN Tax Convention. Show the world that you can stand up to injustice, further your decolonisation journey and break free of the OECD. It’s now or never.”

    Source: Nation

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