The Financial Services Authority says St. Vincent and the Grenadines intends to object to the blacklisting by the European Union as a tax haven.
On Wednesday 17th June 2015, the European Union (EU) blacklisted thirty countries as ‘tax havens’. Fourteen out of the 30 countries blacklisted by the EU are Caribbean countries, including St. Vincent and the Grenadines.
The FSA in a statement said that there appears to be no rationale for this blacklisting of St. Vincent and the Grenadines save for the fact that this country operates an IFS industry, albeit very small.
It said no information or evidence has been provided to St. Vincent and the Grenadines upon which a conclusion can be drawn that this country has been or is non-Compliant, non– receptive or non –cooperative with any international tax initiative or any specific request for information or case for tax avoidance by any of the named countries, or from the EU.
St. Vincent and the Grenadines has queried this blacklisting with the Organization for Economic Cooperation and Development (OECD), the international tax standard setter, which is the relevant international body for tax compliance issues.
In a formal statement by the Global Forum issued to its members on June 19th 2015, the OECD Global Forum has in effect disassociated itself with the action of the EU and underscored the fact that it is their own assessment which is the relevant assessment for the purposes of determining a country’s cooperation in tax matters