Senior officials from 18 Commonwealth small states and overseas territories expressed broad support for global efforts to promote greater international tax transparency, during a Commonwealth International Tax Roundtable in London hosted by the Commonwealth Secretariat.
Senior officials from 18 Commonwealth small states and overseas territories expressed broad support for global efforts to promote greater international tax transparency, during a Commonwealth International Tax Roundtable in London hosted by the Commonwealth Secretariat.
This was reflected in an
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The positive role that these international financial centres (IFCs) play in offering a means to diversify the economies of many small and developing countries, and in facilitating international investment flows, was stressed by all delegates.
Responding to the publication of a European Union blacklist of jurisdictions in 2015, the officials from the small states and territories urged “objective criteria” to be developed by the international community, as well as greater engagement with smaller jurisdictions, over the development of tax standards and rules.
“A number of delegates emphasised the importance of giving jurisdictions a voice in the development of international standards and rules, rather than expecting them to implement them once they had been determined,” the statement says.
“Moreover, there was a strong view that the development of any blacklists and the application of any measures had to be undertaken fairly, ensuring that it applied equally to all jurisdictions that do not meet the objective criteria.”
The Commonwealth International Tax Roundtable came in the wake of the unprecedented ‘Panama Papers’ leak of documents in April, which sparked concerns about wealthy individuals and corporations using overseas financial facilities to avoid or evade tax.
The roundtable followed a call from Commonwealth Finance Ministers at their 2015 summit for member countries to work more closely together on global taxation policies and regulations. The Finance Ministers next meet in October 2016.
The small states and overseas territories at the meeting, between 20-21 June were from across the Caribbean, the Pacific, Africa and Europe and included Barbados, the British Virgin Islands, the Cayman Islands, the Cook Islands, Seychelles and Cyprus.
In addition to the senior officials, tax and regulatory experts from organisations such as the Organisation for Economic Co-operation and Development (OCED), the Global Forum on Tax Transparency and Exchange of Information for Tax Purposes and the Tax Justice Network also took part in the roundtable.
In the statement, the small states and territories expressed support for greater collaboration between jurisdictions, noting that all those present at the roundtable have committed to tax transparency standards and are active members of the Global Forum.
Delegates thanked the Commonwealth Secretariat for organising the roundtable, “recognising that there were few opportunities where such jurisdictions could come together to discuss the international tax and related regulatory agenda and how it impacts them”. The engagement and leadership of the Commonwealth as a voice for smaller states in international fora such as the G20 and the Global Forum was welcome, they said.
Addressing the roundtable on its opening day, Commonwealth Secretary-General Patricia Scotland commented: “The current international taxation and regulatory agendas present particular challenges for many of the jurisdictions represented in the roundtable. Whilst many jurisdictions are at the forefront of efforts to promote global tax transparency, it highlights the need for all of our jurisdictions to keep on top of what is now a very quickly evolving landscape, and be proactive in responding to it.”
