CARICOM rebukes French president for "tax havens" comments

Caricom countries have raised strong objection to comments by French President Nicolas Sarkozy labelling some of its member states as “tax havens”. Sarkozy made the comments recently, naming Trinidad & Tobago as one of the states.

Zarkozy also named Barbados and Antigua, saying “countries that remain tax havens … will be shunned by the international community”. He threatened that the G20 countries will publish a list of countries – presumably one that includes these 11 – as “non-cooperative”.

The French leader made his comments in his closing remarks at last month's G20 summit in France, and urged leaders to shun the countries for failing to implement proper taxation laws.

In reponse, Finance Minister Winston Dookeran said Sarkozy's reference to Trinidad & Tobago as a tax haven was "premature and improper".

Dookeran said citizens should not be bothered about what Sarkozy had to say, noting that the global body that promotes transparency in taxation matters is not the G20 but an agency of the Organisation for Economic Co-operation and Development (OECD).

He said that body conducts a peer review “in order to come to conclusions regarding the adherence to the international standards.”

Dookeran said Cabinet has taken a decision to become a member of the OECD group and "we are currently involved in that peer review process". He said he plans to contact the French embassy in Port of Spain to get "clarity as to what was the meaning behind that statement.”

He added, "All I can say it is premature and perhaps improper, given that we are involved in the peer review to meet intentional standards.”

A statement issued by the Caricom's Council for Trade and Economic Development (COTED) said the “indiscriminate characterization” has brought the good reputation of these states into question.

According to COTED, “the Global Forum has not, in fact, published a list of eleven “Tax Havens”, and it has certainly not identified any of these jurisdictions as a “Tax Haven.”

It said Sarkozy’s remarks fail to recognize the efforts being made by the Caricom states to bring their legal and regulatory framework into compliance with the global standard.

“Given our member states’ ongoing collaboration and cooperation with the Global Forum in order to ensure that their legal and regulatory framework meets the global standard, such characterization of Caricom states is subjective and completely without basis.” the COTED stated.