Barbados has no Integrity Legislation, no Freedom of Information, no Conflicts of Interest Rules
We stumbled upon an article in yesterday’s Nation that proves all old can be new again. It must have been a slow day in the news room because the news article TAX ATTACK is based on a blog entry from last August and is marketed as new news.
We don’t doubt that much of the Canadian doubts about Barbados and other “Tax Havens” has to do with our lack of proper regulations and laws respecting Integrity Legislation, Freedom of Information and Conflicts of Interest. How can the Canadian Government protect its citizens if offshore banking centres like Barbados do not have the same controls, rules and oversight as Canadian banks?
There is no secret why Canadian and other nation’s banks like Barbados: our “island time” slackness extends to the rules. The Canadian and European banks can get away with things in Barbados that they wouldn’t dare do ‘over ‘home. Canadian tax law permits money to flow through Barbados in many billions – but without any concommitant requirement for ITAL. (ITAL = Integrity, Transparency and Accountability Legislation)
ITAL was promised five years ago by the newly elected DLP government – but they lied.
Here’s a quote from the real story at the original blog source and the link where you can read it for yourself. How does this impact Barbados? That’s easy: tourism is in trouble and if Canada makes offshore investing difficult for Canadians, you just watch how things go ’bout hey!
“A growing share of Canada’s investment overseas is being channeled by Canadian banks into tax havens.”
“The finance and insurance sector now accounts for over 51% of Canada’s total direct investment overseas, more than double its share from 1987, more evidence that a large share of this money is going overseas to avoid taxes. The Harper government has lauded Canada’s growing investment overseas, claiming it shows looser foreign investment rules (which allowed numerous takeovers of Canadian industry) have been beneficial, but the actual figures show the reality is quite different. A large and growing share of this money isn’t going into real capital investments that could ultimately benefit people overseas or in Canada; it’s going into tax avoidance that benefits a wealthy few at the expense of the large majority in Canada and around the world.”
… from the August 16, 2012 Progressive Economics blog by Toby Sanger: Canadian banks use of tax havens keeps growing