Offshore Sector Welcomes Barbados' Removal From OECD Blacklist

by Amanda Banks, Tax-News.com, London

06 February 2002

Following the announcement last week that Barbados will not appear on the revised list of countries deemed to be uncooperative tax havens by the OECD, industry players are keen to get the country's offshore sector fully back on track.

In a joint statement, the Organisation for Economic Cooperation and Development and the Barbadian authorities revealed that discussions which have taken place since the release of the 2001 Progress Report have convinced the multilateral body of the transparency of the jurisdiction's tax system, and its willingness to assist in the effective exchange of information.

'Barbados has long-standing information exchange arrangements with other countries, which are found by its treaty partners to operate in an effective manner,' the OECD commented, adding that: 'Barbados is also willing to enter into tax information exchange arrangements with those OECD member countries with which it currently does not have such arrangements.'

Announcing the imminent de-listing of the Caribbean jurisdiction, Reginald Farley, the Minister for International Business, revealed that his priorities are to conclude negotiations over the Canada-Barbados Tax Treaty - progress on which was stalled as a result of inclusion on the OECD blacklist - and to look towards creating tax-sparing arrangements with other OECD member countries.

Ben Arrindell, a Tax Partner with Ernst & Young in Barbados, commented this week that the de-listing would improve certainty in the stockmarkets and facilitate the offshore sector's continued growth. He also stressed the need for a back-to-basics approach on the part of the Barbadian authorities, and the development of new strategies which will clearly inform the jurisdiction's future direction.

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