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Press Release for August 2012 IBFS Newsletter
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IBFS Newsletter August 2012
Our August IBFS Newsletter is out. This is the penultimate issue for this year and we are sure that you will find it as informative and enlightening as the previous issues. As always we invite your comments and feedback as we strive to continuously improve our product.
In this issue Ben Arrindell, an international tax expert, provides us with an International business update where he focusses on the impact of changes to the tax rates on companies operating in Barbados’ international business sector and the new immigration policies aimed at encouraging high net wealth individuals to relocate to the Island. The initiatives were outlined in the most recent Budgetary Proposals, delivered by the Minister of Finance on June 26, 2012.
Kaeron Venner, Director of International Business in the Ministry of International Business and International Transport in Barbados deals with G20 concerns about international tax evasion and its impact on members’ tax revenue. The role of the Global Forum on Transparency and Exchange of Information for Tax Purposes is discussed as this organization has responsibility for in-depth monitoring and peer review concerning the implementation of international standards of transparency and exchange of information.
The review process is undertaken in two phases, 1 and 2. Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework, while phase 2 looks at the implementation of that framework. Barbados’ Phase 2 review is scheduled for 2013.
Henderson Holmes, Executive Director of Barbados International Business Association (BIBA) gives a BIBA perspective on the International Business Sector following this year’s budgetary proposals. He expressed some disappointment at the amount invested in the sector compared to the amount of foreign exchange generated by the Sector for Barbados and also looks forward to be promised “international business legislation day”, where several legislative suggestions made by BIBA would be discussed.
Trevor Carmichael deals with “International Supervision: And the Beat goes on” where he focusses on insurance domiciles in the Caribbean and the mid-Atlantic and the question of Europe’s Solvency II Directive, which is a cause for some concern and debate. Although the discussion is more centered on Bermuda and Cayman, it still has more than local passing interest. The core objective of the directive is international equivalence which highlights the importance of international regulation and the role of the International Association of Insurance Regulators.
DeLisle Worrell deals with the critically important issue of “Maintaining Policy Independence”. He makes the point that the Barbadian economy depends on foreign exchange to finance imports. It has therefore been necessary to reduce overall spending on imports in the face of the slowdown in tourism and the international business and financial services sector. Fiscal restraint has helped in keeping the external accounts in balance, and the foreign reserves of the Central Bank have been maintained at about the same level as that preceding the crisis in 2008. This means that the exchange rate is secure.
Bruce Zagaris draws to our attention that on April 25, 2012 the Office of the United States Trade Representative issued a revised model bilateral investment treaty (BIT). This is the first revision since 2004 and tries to balance providing strong investor protections and preserving the Government’s ability to regulate in the public interest. BITs are important as they sometimes provide rights and remedies to rectify disputes relating to tax issues.
Our Senior Librarian Laurie Blackman gives a short review of the “International Enforcement Law Reporter”. The publication is a reliable guide to breaking news in the
dynamic field of international enforcement law. Established in 1985, it is published monthly and features articles by Bruce Zagaris, (its founder) and a team of practitioners, academics and law enforcement officials.
This issue ends with the exciting news from Sadie Dixon that local lawyers will be honing their skills to better cope with the widespread and rapid changes in the international business sector. To achieve this, The Barbados Bar Association, the Central Bank of Barbados and Messrs George Walton Payne and Associates, recognising the significance of sustaining a vibrant international business sector in Barbados and being cognisant of the crucial role that attorneys-at-law perform in this sector, will host a seminar for attorneys-at-law on November 17, 2012 at the Grande Salle of the Central Bank of Barbados from 10 a.m. until 3 p.m. The seminar is also expected to attract recently admitted attorneys-as well as practitioners who desire to diversify their practices.
Neville W. Pollard
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