Barbados had better develop some new revenue streams… like yesterday!
submitted by Not Taken
Luxembourg / Barbados / Marshall Islands – tax avoidance and income shifting is all the same shell game but it’s becoming more difficult to hide due to computers and the communication and lobbying powers of the internet.
The Brits are out to stop the game. Canada (CRA) and US (IRS) are cracking down. Barbados is very exposed. Our Government should be prepared to see its revenue from offshore businesses to decline substantially. The billion of new Treasury Bill funding to pay its bills will disappear quickly.
And at the same time as our offshore banking and companies hosting industries are coming under pressure, our tourism seems to be in a death spiral.
Many of us foresaw this situation coming ten years ago. Only fools couldn’t see it coming five years ago.
So far I’ve heard nothing from either the DLP or the BLP except excuses and criticism without solutions capable of addressing this crisis. This is not a time for gentle, incremental solutions: it is a time for radical changes, not more of the same.
Have a look at this from a Canadian newspaper…
Amazon’s U.K. unit slammed for ‘pathetic’ $3.7-million tax bill
Amazon.com Inc.’s main U.K. unit paid $3.7-million (U.S.) of taxes on its 2012 income, it said on Wednesday, despite group UK sales of $6.5-billion, prompting criticism from lawmakers and competitors.
Amazon.co.uk Ltd. added in its accounts, published through the U.K. companies register, that it received £2.5-million ($3.8-million U.S.) in government grants during 2012 – just ahead of the £2.4-million it paid in corporation tax, the U.K. form of corporate income tax.
Corporate tax avoidance has risen to the top of the political agenda in Europe following revelations in the past couple of years about how little big names like Apple Inc., Starbucks, Google and Microsoft pay in tax in markets where they reap billions of dollars in sales.
The companies say they follow the rules but U.K. Prime Minister David Cameron has called for international action on the shifting of profits, which can help firms cut tax bills.
Amazon.co.uk reported a small corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, Amazon EU Sarl, which employs around 500 staff.
The British subsidiary, which employed 4,191 people at the end of 2012 and thousands more indirectly via contracting agencies, is deemed, for tax purposes, to be a service provider to the Luxembourg unit.
… continue reading this article at the Canadian Globe