“Last year unemployment in Barbados stood at nearly 12%, but it the rate is forecast to rise to 15.6% in 2015, according to the IMF.”
According to the International Monetary Fund, RBC, CIBC and Bank of Nova Scotia are dominant players across the region with about 60% of total banking assets, almost as strong as their position in Canada. But are those players starting to question their enthusiasm in the face of the regions worrying economic malaise?
Canadian Imperial Bank of Commerce warned last week that it will take a $420-million charge to goodwill related to its subsidiary CIBC FirstCaribbean, which it blamed on “persistently challenging economic conditions and our current expectations for conditions going forward.”
With unemployment in the U.S. still stubbornly high, the middle class seems to be taking more modest holidays, with far fewer traveling to the Caribbean. The developed world is starting to recover from the turmoil but the numbers suggest that’s not the case in countries like Barbados and Jamaica.
… much more in the Financial Post: How the Caribbean is not so sunny anymore for Canadian banks
Barbados puts on a happy face and buries in the press release that offshore secrecy between Bim and Canada is a thing of the past…
The Protocol amending the Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital is now in effect. It entered into force on 17 December 17, 2013.
“On November 8, 2011, Canada and Barbados signed a Protocol to amend the 1980 DTA. This Protocol, among other things, now allows entities operating in the international financial services sector to benefit from a number of provisions in the Treaty, including the provisions on residency. In addition, such entities will now be covered under the new comprehensive exchange of information provisions which now meet the OECD standard.“
Barbados values the mutually beneficial and long standing relationship with Canada and welcomes this development as it will further concretise Barbados’ principles of transparency and substance. Through our network of tax treaties, it will further solidify Barbados’ commitment to international best practices on the exchange of information.
Read the full story: Barbados Prime Minister: Protocol Takes Effect
Back in early May, BFP told our readers how a Canadian company avoided 1.4 billion in taxes by using an offshore subsidiary. We speculated what it means for Barbados as the Canadian tax authorities attempt to track down and close the tax loopholes that, frankly, are the life blood of our offshore banking and financial industries. (See Cameco tax case is scary for Barbados!)
In the Cameco case profits were diverted to a Swiss based subsidiary that paid a far lower tax rate than the Canadian operations of the uranium producing company.
Now one of our sharp-eyed BFP readers has come up with five Barbados offshore companies that look like they could have something to do with the Canadian Cameco company involved in the international tax mess. Some of the Directors appear throughout the companies and we wonder what it all means. According to some of the news accounts, Cameco shareholders are facing some hefty losses depending on the outcome in the Canadian courts.
We will continue to follow this case as it is a canary in the coal mine for the health of our offshore banking and companies revenues.
The Barbados offshore companies are:
CAMECO GLOBAL SOUTH AMERICA INC.
CAMECO INSURANCE SERVICES INC
CAMECO RESOURCES, L.L.C.
CAMECO SERVICES INC.
CAMECO URANIUM INC.
Here are the names of the Company Directors and Officers. Hmmmmm…. I recognize a few names! Continue reading
What can Barbados do to regain offshore investors’ confidence?
Willie & Rib Bone Finanshul Servises have the answer!
Between the recent Tax Havens customer data leaks and the collapsed Harlequin property investment scheme, Barbados has been hit pretty hard. Foreign investors have been wondering if Bim is still a safe destination for their hidden cash. Will the police or tax departments in their own countries somehow learn about their millions stashed away on Barbados? That’s a worry for sure!
But no worries… Barbados Free Press has learned that our own regulars Willie & Rib Bone have established their own offshore bank right here in Grape Hall. It’s a little out of the way, but that’s not so bad all things considered!
We’ll let Willie & Rib Bone tell you about it themselves if they can put down that funny looking cigarette they are sharing…
“Willie & Rib Bone Finanshul Servises”
Has open it doors by da rum shack on da coast road for gentlmens of forun extrax shun from da Grate White North of Canada what want to git there money washed. Any amount of money be welcom and yore estwile bankers who has many years of experence in keepin da cash aways from pryin eyes can garantee dat you gonna get da best servises what dat money can by. We is very experence in disapeering acts and can do all sorts of fancy investin wit whatever you give us. Trust us becuz we beein in bidness for years as our polise records will show you when you inqire bout how honest we is.
Thank you for yore support,
Willie and Rib Bone
Dis is Rib Bone and Willie forget to tel you dat if you see da polise cars by da rum shack on da coste road maybe you visit a litle later when dey leave so dey dont reqwire dat you plase yo investmunt wit dem sted of us estwile finanshul opertunitists dat we are.
Rib Bone Washington, eskwire
Washing money, Hiding money
contributed by “M”
Unlike the mainstream media in Barbados which seems disinclined to report on the financial shenanigans of its politicians/public figures (except the $75,000.00 cheque), the media in Canada has no such hesitation, as seen at the attached link to CBC website. Other major media in Canada are running with the story. While 38 media outlets around the world are probing the data leaks reported in the material reported in Canada by CBC, I do not expect to read about it in the Barbados papers.
Canadian CBC: Senator’s husband put $1.7M in offshore tax havens
Canadian CBC: 450 Canadians in offshore leak
Yahoo! Finance: Report exposes secrets of offshore tax havens
While Barbados does not figure prominently in this and related CBC articles, I think Barbados authorities should be concerned.
Barbados is the third largest recipient of Canadian outward Foreign Direct Investment, after the USA and the UK; with the principal industry being “financial services”, which I expect is mainly in “offshore” accounts. Canadians are believed to to be the largest depositors in Barbados offshore bank accounts.
It may well be the case that all of those a legal.
Notwithstanding, with the spotlight being shone on the issue of “offshore accounts” and “tax havens”, and Canadian Finance Minister Jim Flaherty’s pledge in last week’s budget the government will bolster its efforts to fight offshore tax evasion, including launching a new whistleblower line that pays rewards for tips, improving compliance programs and demanding more information on certain financial transactions; it seems likely that some Canadians “investors” will choose to repatriate their foreign direct investments to Canada rather than face the scrutiny for Canada Revenue Agency
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