Bahamas PM says Caribbean will follow demands from France

NASSAU, Bahamas, CMC- Prime Minister Hubert Ingraham believes that Caribbean countries named by France as tax havens, will have no choice but to comply with the measures outlined by the Paris-based Financial Action Task Force (FATF).



“The reality is...the developed world has to fund their social systems and revenue becomes less and less available for them to do so, more efforts will be made to find additional sources of revenue and we have to see that places where some of the wealthy of the world hide their monies. The reality is the developed world doesn’t really believe we ought to be in financial services as we are and they are taking every step to drive back on shore the things we are doing on shore, “ he told the Caribbean Media Corporation.



Earlier this month, French President Nicolas Sarkozy, speaking at the end of the G20 summit in France named 11 countries, including Trinidad and Tobago, Antigua and Barbuda and Barbados, as tax havens for failing to meet transparency standards.



The three Caribbean Community (CARICOM) countries have dismissed the French position and former regional diplomat Sir Ronald Sanders said that the Caribbean needed to adopt a united position on the issue.



However, Ingraham told CMC while he was not surprised at the French position, he could recall a similar position in which The Bahamas found itself leaving Nassau in the end with no choice but to comply and sign a tax agreement with the United States.



“I was not surprised by the comments of President Sarkozy in relation to the countries in the region, but i did not he included Switzerland and that gave me some comfort.



“In the Bahamas, for instance, we virtually swore we would never sign a tax information agreement (TIEA), the Americans used their might and we ended up signing with them. We firmly said we will not do so with anybody else in the world, that was a one off deal just because of our relations with them ...we ended up signing with everybody”.



Ingraham said that while Barbados took the view that it has double taxation treaties and had no need for TIEAs and when the OECD issued its black list of countries, Bridgetown was not included, while The Bahamas were.



“So it is ironic that Barbados is now been categorised by the French in that way, but Barbados will do what is necessary to comply and so will all,” he added.



Ingraham told CMC that the economy of his country had improved over the past few months, adding “we are making some progress, there has been some stabilisation...revenue is beginning to climb back up....and the government has been able to stimulate the economy significantly”.



He said the public investment programme has been “huge” in getting the economy moving , with tourism doing “fairly well”.