Cross Border Taxation An Issue For The UN, Says Barbados PM

by Amanda Banks, Tax-News.com, London

09 January 2008

Barbados Prime Minister, Owen Arthur has called for the establishment of a new agency to deal with issues arising from cross-border taxation within the United Nations.

Arthur expressed his view on Tuesday during a courtesy call from UN Secretary General, Ban Ki-moon, at the Barbados Government Headquarters. Arthur said that cross border taxation issues were becoming more important as countries moved towards a global economy. He acknowledged the existence of a committee at the level of the UN, but advocated that its work should now be at the level of an agency.

He pointed out that Barbados did not want to be used for tax evasion or money laundering, but wanted to participate in legitimate business with international tax corporations. He said the country was therefore keen to work with the UN on matters related to international tax corporations.

During the discussion, the Prime Minister also stressed the importance of middle income countries being recognised for their successes by the global community. He argued that whilst lesser developed countries must continue to be given attention, there was an “inefficient distortion” of the flow of resources which needed to be re-examined.

Arthur suggested that middle income countries should not be penalised for their achievements, but rather, they should be seen as ‘change champions’, and should be involved in strategic alliances which would be enriching.

According to the government, the Secretary General concurred that middle income countries should be recognised for their achievements, and admitted that he was “fascinated” by the level of development reached by Barbados, and its ability to overcome challenges such as extreme poverty.

The talks also focused on the technical assistance that could be offered by the UN for the regional integration process.

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