Illinois labels Dominica as ‘foreign tax haven’

The US state of Illinois has blacklisted Dominica and a number of Caribbean countries and other countries worldwide as “foreign tax havens” in the recent House Bill 3419.

The Bill has gone through two readings as of March 23, 2017 and is expected to have a third reading and a short debate soon.

It deals with companies which operate in these “foreign tax havens” with characteristics which classify them as “Expatriate Corporations.”

A “restricted list” of these companies will be created and they may be subject to divestment unless they cease all activities which classify them as “Expatriate Corporations”.

Other Caribbean countries on the list include Anguilla, Antigua and Barbuda, Aruba, the Bahamas Barbados, British Virgin Islands, Cayman Islands, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines.

The move by the state of Illinois is not going down well with the Caribbean Association of Banks Inc (CAB).

In a statement, CAB said that while fully supports Illinois’ efforts to combat tax evasion, it considers the labelling of Caribbean countries as “Foreign Tax Havens” prejudicial.

CAB pointed out the following:

1. According to the latest update of the IRS’ Foreign Accounts Tax Compliance Act (FATCA) listing, twelve (12) Caribbean countries have Inter-Governmental Agreements in-force with the U.S.; five (5) countries have signed the agreement and one (1) has agreed in substance. Our Governments and Financial Institutions have incurred great cost to make all relevant tax information readily available to U.S. authorities.
2. Seven (7) Caribbean territories have committed to the OECD’s Common Reporting Standards (CRS) in 2017 and nine (9) are committed to begin reporting in 2018. CRS will legally require Caribbean jurisdictions to exchange relevant tax information with tax authorities of the originating country.
3. Thirteen (13) Caribbean territories have been labelled largely compliant with the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.
4. All Caribbean countries are identified as having no strategic AML/CFT deficiencies by the Financial Action Task Force (FATF).

CAB also said in fulfilling its mandate, it “works closely with its members as well as regional and international stakeholders, to ensure compliance and training are fully operable at international standards.”

“The effects of this ‘black listing’ cannot be understated as the reputational damage of such an action may have catastrophic consequences for the Region’s financial services sector as well as the functioning of its economies,” the organization said. “It may also serve to exacerbate the perception of our Region as a high risk area and consequently negatively impact the Risk Rating Profile of regional financial institutions by correspondent banks.”

CAB stated that the US is the Caribbean’s largest trading partner facilitating in excess of US$20bn in trade for 2016 of which US$11.7bn comprised of exports to the Region.

“The U.S. is also the largest source of tourism for the Region, accounting for twenty eight (28) percent of regional GDP, or in excess of US$45bn . This Bill threatens to unhinge the financial linkages between the U.S. and the Caribbean by unnecessarily increasing the risk perception of the region as well as deterring foreign direct investment. This no doubt can cripple the very livelihoods of the Caribbean people,” CAB said in a statement.

The organization said it has written to key members of congress and Representatives from the State House of Illinois advising them of the disastrous consequences of the Bill and urging the removal of the Caribbean countries listed as foreign tax havens.

CLICK HERE TO READ THE FULL BILL

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33 Comments

  1. Music Producer
    April 24, 2017

    8-O Sooooo, a vorler is not qualified to advise you of the circumstances of your similar action? 8-O I think the vorler is more that qualified, it’s his/her trade! 8-O

  2. Jonathan St jean
    April 23, 2017

    Skerritt and the Labour Party won the general election by campaigning​ that UWP was a corrupt party.The Freedom Party joined Labour to form the government then.I wonder what the Freedom Party is saying to the Dominican people for helping put this corrupt yolk around the neck of the country.This stain of corruption by Skerritt is truly international in scope and nature.These guys have tarnished the good name of Dominica to an extent,that it will take about 50 or more years to restore if at all possible.Skerritt ,the honourable doctorate holder is now asking Dominicans to come up with ideas for national development at a time when they see the international community clamping down on his criminal enterprises.Skerritt and his cabal kept denying they were committing high crimes until the CBS 60 minutes program aired.Going forward more countries and institutions will tighten the screws in their coffins.God don’t like ugly so Freedom Party needs to say one Mary but Labour can’t be helped

  3. Let The Truth Be Known
    April 23, 2017

    This sounds like Rijock’s defaming version.
    Chicago, Illinois. Chicago, how does this affect you? The amount of murders in especially Chicago, they will do well to exert their effort and energy to eradicate them.
    Pay no attention. However, the Caribbean must respond and ask Illinois to prove it.

  4. Tj
    April 22, 2017

    Actually the minister without portfolio should look into suing the state of Illinois. By the way Steve I am in agreement with you.

  5. Spike
    April 21, 2017

    “The US state of Illinois has blacklisted Dominica”: IT HAS NOT. In this one of the 50 American states, some legislator has filed a bill (one of thousands, as you can see by the bill number) assailing Dominica and other countries. In some states, such as Massachusetts, a legislator is bound by tradition to file a bill at the request of a single voter. This does not mean that the bill has PASSED the Illinois House, much less been agreed to by the Senate and signed into law by the state Governor. And even so, US states neither run foreign policy nor run international tax policy. Illinois is a high-tax state in the rust belt that is virtually bankrupt and bleeding businesses to neighboring states such as Wisconsin and Indiana. And perhaps Dominica. At least one legislator would like to blame the existence of escape routes instead of the fires he himself has set. None of this is about Dominica.

  6. April 21, 2017

    NWO the new world order, well so it is what can we do leave or die no agreculture no more bananas yams dasheen,cork koy Skero and nassief tell us forget about agriculture it was a has been focus on tourism,USA controls tourism edison james said years ago Dominican agricultur agricultur well now we leave by the law or suffer

  7. Jonathan St jean
    April 21, 2017

    That helps explain why team Skerritt, Blackmore, Tony and the Permanent Secretary all fluttering like bees in response to Rijock blog about blank passports.. Skerritt you are King if a very corrupt empire.

  8. Joe
    April 21, 2017

    Illinois is just a state we have no diplomatic relation with a state within a country so that is just bull crap who they want to black list we have no dealings with them anyway!!!!! Tell them i Joe say GO TO HELL!!!! it is not their DAMN BUSINESS IF WE ARE A TAX HAVEN OR NOT!!!!!!!!

  9. April 21, 2017

    Another misleading headline by DNO!!!. These countries have not been blacklisted, the bill has not yet been approved it is been discussed in the legislature.

  10. April 21, 2017

    They say slavery was never truly abolished.

  11. April 21, 2017

    Lol America again? Illinois’ capital is Chicago.. they forget what going on in their own backyard? The United States will do everything to label other countries as bad ones so they can look good. We in the Caribbean cannot have nothing? Is for America alone to eat, America alone to be mighty. Soon soon, all of them will run from the big US and seek refuge in those same Caribbean islands labeled as ‘tax havens’! Struupess!

  12. April 21, 2017

    Not the best headline for this, to be honest. It being a bill in the lower house of the state legislature isn’t the same as “Illinois labels Dominica as ‘foreign tax haven’”.

    It’s also yet another example of Americans needed to take the beam our of their own eye before complaining about the speck is someone else’s, but that’s par for the course on this issue.

  13. FORKIT
    April 21, 2017

    doh worry tony going and sue allu for saying bad fings about dominica a its supreme leader

  14. LifeandDeath
    April 21, 2017

    Here goes another attempt to control small island states, make them afraid, very afraid and then cripplingly dependent..
    The same ones that make the laws are the same ones that covertly break them for their own personal interest. Is it America and Europe alone that must eat?

    • April 21, 2017

      That’s exactly my opinion

    • Jr
      April 21, 2017

      My thoughts exactly.

  15. Sakah boy
    April 21, 2017

    Chicago, Illinois? Garcon…so much crime there? They cannot even fix DAT!!!. They have the audacity to talk about Dominica!! ?? . How come these people always have to interfere in another country’s affairs nuh and not fixing their own? Eh? Every day is gun shots, murders, robberies…fix that..!!

    • FORKIT
      April 21, 2017

      what about those terrorist that trying to kill them to. guess where they getting those passport to infiltrate, in the caribbean. allu really tebeah

      • $$$
        April 21, 2017

        Plenty get Green Card already and a lot more are home grown. What planet are you on?

    • Let The Truth Be Known
      April 23, 2017

      Chicago is a bad place I have no urge to visit there. The government of Illinois will do well to mind its business.

  16. Sakah boy
    April 21, 2017

    Chicago, Illinois ??? !!. ….WHERE CRIME IS THERE NUMBER ONE ISSUE WHICH THEY CANNOT HANDLE? People dying there everyday senselessly? Man the US has a way of really interfering in other countries affairs and not fixing there own.

  17. ....
    April 21, 2017

    The US should stand up to the big players like itself. Such a cowardice, imperialist and slave master move.

    It seems that the Caribbean is in no way entitled to any form of foreign investment. The Caribbean must just sit back and wait on and consume everything American. Food, dress, knoweledge, culture, entertainment.

    Massa Day Dun!

    Go deal with ISIS and the Koreans.

    • Jr
      April 21, 2017

      They arethe only ones who must eat. Smfh .killing our bananas was not good enough they want to make us beggers to.

      • Music Producer
        April 24, 2017

        Make us beggars? As though we are not yet there… 8-O

  18. April 21, 2017

    If their president find away to not pay taxes or maybe just a litle tax why they have issues with people putting it in forieng countries? They them clean theur back yards first begore tney come clean ours. I live in America but this country us to byasz

    • Dante Jones
      April 23, 2017

      Where you getting your thing about the man find a way not to pay tax? You have no proof of that and you know it.

  19. Stealth Critique
    April 21, 2017

    Let’s not forget that several US states are also tax havens.

  20. Doc. Love
    April 21, 2017

    Is Tony doing to sue the US State of Illinios, on behalf of the Government.

  21. Kermit
    April 21, 2017

    Majority of the Caribbean.

  22. papa
    April 21, 2017

    That’s bull who pay all u to do that check pm before

  23. Concerned Student
    April 21, 2017

    Very interesting.. a message to all of you corrupt leaders in the caribbean.. every road has an end.. ita about time we begin to rid the caribbean of the filthy corrupt leaders we have not only in dominica and in poltical office, but in all organizations..

    • Zaji
      April 21, 2017

      Emancipate yourself from mental slavery.

    • Jr
      April 21, 2017

      Whatever! Who more currupt than the Donald and his America?

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