Barbados is a reputable, low tax jurisdiction! This was the message of Senator, the Honourable Darcy Boyce, when he led a successful investment mission to Toronto, Canada last week.
Addressing reporters in Toronto, Senator Boyce explained that lox tax jurisdictions like Barbados help to “boost business activity globally by making their clients more competitive and therefore able to grow faster.”
Senator Boyce noted that by setting up in Barbados companies can lower their tax bill, as well as enjoy other benefits such as freedom from exchange controls. “In contrast, tax secrecy havens have the potential to be used by investors for opaque purposes – that could include tax evasion and money laundering,” he said.
At present, approximately 75% of the international financial community in Barbados, is Canadian owned. Apart from the banking sector, Canadians have also invested in Barbados’ insurance, shipping, utilities, information communication technologies, and international trade and commerce sectors.
The OECD has also recognised Barbados as a reputable low tax jurisdiction. In fact, Barbados was the only independent Caribbean nation named in the OECD’s original “white “list – confirmation that Barbados had substantially implemented the internationally agreed tax standard. Barbados’ network of tax treaties, is credited as the main reason why Barbados was the named on the OECD’s “white” list of tax jurisdictions published after the G20 meeting in April 2009.
In January 1980, Barbados signed a Double Taxation Agreement (DTA) with Canada, and a Bilateral Investment Treaty in May, 1996. The DTA has provisions for exchange of information between the two governments.
To date, Barbados has signed a total of twenty DTAs.