[RD] Europe Dictates Caribbean Tax Policy

[BvBPL]

The Organization of Economic Cooperation and Economic Development (OECD), a Euro-centric international body, is committed to advocating for tax transparency and asset-information sharing systems across the world. It has deployed a Common Reporting Standard (CRS) whereby banks must share the asset information of account holders with other countries.

As part of advocating for tax transparency and information sharing, the OECD has taken upon itself to call out those nations whose tax policies may not be in line with the OECD’s goals. The concept is to blackball these countries from international finance industries by causing OECD-member nations to impose sanctions and reduce investment in the blackballed countries.

Bahamas has recently received notification from the OECD that it is in danger of being placed upon the taxation blacklist. In particular, the OECD takes umbrage at the Bahama’s policy permitting entities to move assets into the Bahamas to take advantage of that nation’s friendly tax policies.

Or, at least, that’s the OECD’s story now. Previously, the OECD has warned the Bahamas of the potential of being on a blacklist and provided a list of concerns that it would like addressed. The low tax rates in the Bahamas were not one of the enumerated concerns, but now the OECD seems to have changed its tune.

This isn’t the only why in which the OECD has shifted its expectations regarding the Bahamas. Prior communication recognized how bad the 2017 hurricane season was and gave an expectation that the OECD would allow the Bahamas until the end of the current year to get in line with the Organization’s demands. However, it now appears that the OECD has forgotten that prior commitment and is ready to step up the pressure on the Bahamas far in advance of the previous timeframe. That, in addition to the change in tone on the low taxes of the Bahamas, makes some feel that the OECD is not acting in good faith.

The OECD has provided an example plan by which the Bahamas could implement reforms that would bring the island nation in line with the European expectations. Ultimately, this feels like Paris legislating for Nassau.

Link

 

[Cheetah]

I'm perfectly fine with this. They're facilitating theft from us. Theft which inevitably harms the weakest of us.

If it was up to me we'd already have sent the gun boats.

 

[Lexicus]

I'm perfectly fine with this. They're facilitating theft from us. Theft which inevitably harms the weakest of us.

If it was up to me we'd already have sent the gun boats.

The wrinkle that you're missing is that, of course, the Bahamas acting as a tax haven represents theft from its own residents as well.

 

[Cheetah]

I was considering looking up stuff about their GINI levels and such, but they're fairly wealthy for an American country, so I let it be as it might be challenged as a weak argument.

 

[Hehehe]

So the OECD is cracking down on tax havens? Seems like a great thing to do

 

[Lexicus]

I was considering looking up stuff about their GINI levels and such, but they're fairly wealthy for an American country, so I let it be as it might be challenged as a weak argument.

This is the first article that comes up when you Google "bahamas inequality"

https://thenassauguardian.com/2017/09/29/economic-inequality-killing-bahamas/

 

[Traitorfish]

The Bahamas aren't technically in the Caribbean. Just for the record, like.

 

[Lexicus]

The Bahamas aren't technically in the Caribbean. Just for the record, like.

Whoa whoa, how are we defining Caribbean then?

 

[Traitorfish]

Whoa whoa, how are we defining Caribbean then?

Caribbean Sea-adjacency. The Bahamas are entirely surrounded by the Atlantic, so they doesn't make the cut. Else, Florida would be in the Caribbean.

 

[Evie]

The Bahamas are in Central Europe.

Jokes aside, because this is an RD thread, ultimately this needs to happen. Nations that build an industry that serves just about nobody (brings no job except to a privileged few locally ; while leaving other nations to shoulder the burden of a company's business without being able to tax the profit thereof in return) completely breaks the global economy, and hurts just about everybody.

Yes, I realize a similar case can be made about the economic pillaging of third world countries by first-world countries corporation. I'm not averse to making it.

 

[Hygro]

I'm perfectly fine with this. They're facilitating theft from us. Theft which inevitably harms the weakest of us.

If it was up to me we'd already have sent the gun boats.

That’s why the people with the tax shelters are going to help those who aren’t you control the gunboats

 

[mitsho]

Florida isn‘t an island though. But I don‘t think talking about semantics matter all that much (nevertheless I learnt something new, thank you ).

It‘s about time people realize that it isn‘t Switzerland who is the bad guy in tax havens. It would be more consistent by the OECD if they were to crack down on the Channel Islands, Britain and the Netherlands at the same time as well though...

 

[Zkribbler]

I'm perfectly fine with this. They're facilitating theft from us. Theft which inevitably harms the weakest of us.

If it was up to me we'd already have sent the MARINES.

Fixed.

 

[GoodSarmatian]

I'm perfectly fine with this. They're facilitating theft from us. Theft which inevitably harms the weakest of us.

If it was up to me we'd already have sent the gun boats.

The wrinkle that you're missing is that, of course, the Bahamas acting as a tax haven represents theft from its own residents as well.

If it was up to me I would not punish the Bahamas. I would punish the people/corporations who hide their money there (or in Switzerland). I would not send gunboats or marines. I wouldn't even send investigators or lawyers. In fact, I would never send investigators and lawyers. I would do nothing.
Not enforce their physical property rights, not enforce their intellectial property rights, not protect their safety.

Not acknowledge their existence.

Oh, your father died and left you millions ? Well, there were no taxes paid on these millions, so as far as we are concerned they don't exist and have no connection to you and your family.
Oh, some million euros just randomly appeared. Hmm, since they belonged to no one and no one died without issue, I guess they belong to the state now.
Oh, you went on a business trip to China ? You opened a sweat shop there ? Hmm, we don't have any records of you having money to invest in a sweatshop. We're not merciless. We give you a choice. Say how you could finance that, admit to tax evasion, pay back taxes with hefty interest and maybe spend some time in jail.
The other option ? Be stripped of your citizenship and deported and wander the Gobi Desert for the rest of your life for all we care.

Hear, hear!


The wrinkle that you're missing is that, the Bahamas are a) relatively rich and b) your petty tax haven appendix.
You worry how the people there are doing. We will worry about the threat of poverty to Liechtensteiners, Monegasquens and Curacaoans.

You're barking at the wrong tree here. Lexicus is the last person to defend any tax haven.

 

[Broken_Erika]

I though the Bahama's were in Australia's western desert?

That being said, this kinda thing needs to happen more often, ALL tax haven's should get a financial embargo..

 

[Takhisis]

The Organization of Economic Cooperation and Economic Development (OECD), a Euro-centric international body

That's not the same as ‘Europe’ dictating Caribbean tax policy. The thread title is highly likely to mislead people into thinking that the EU was enforcing its laws on non-member countries from another continent.

 

[Arwon]

Yeah as someone who occasionally deals professionally with an agency of the OECD they can be annoyingly eurocentric at times, but it is extremely dishonest to characterise them as "Europe" in this way. I'd actually call it a straightup lie.

If nothing else, 10 of their members are outside Europe including the world's 1st, 3rd, 10th 11th, 13th, and 15th largest economies. And another 4 are outside the EU.

 

[Oerdin]

I am fine with disclosure laws but trying to dictate tax rates and tax policies is outright wrong and imperialist nonsense.

 

[Lexicus]

I am fine with disclosure laws but trying to dictate tax rates and tax policies is outright wrong and imperialist nonsense.

What level of concern trolling are you on my dude?

 

[Oerdin]

No trolling. Trying to dictate tax rates in soveriegn countries is not the type of behavior which should be condoned and, yes, it very much is imperialist.