Belize labeled as tax haven

We didn’t make the money launderers’ list, but we have been billed as a tax haven. Reports from the Caribbean are that on Monday, the Organization for Economic Cooperation and Development (OECD) named 14 countries as tax havens and Belize was one of them. Apparently Belize is one of those places the really rich non-residents go to in order to pay less taxes in their own countries. While no defensive measures will be taken, the OECD is warning that if the situation is not remedied by July 2001, sanctions will be levied against the named countries. At this time, it is uncertain what those sanctions will be, but guesses include things like cut offs in trade. News Five contacted Central Bank Governor Keith Arnold, who says they are aware of the listing and admits that it could have serious negative impacts on Belize’s off banking businesses. Arnold says like other Caribbean countries, Belize has asked for more time to figure out what the OECD considers as harmful practices. According to Arnold, OECD does not have jurisdiction over Belize, but because of its power, the listing cannot be ignored. Meanwhile, President of the Caribbean Development Bank, Sir Neville Nichols says the OECD has no right to be pointing fingers at other countries and goes so far as to suggest that legal action should be taken against the organization. The following comes courtesy of the Caribbean Newsline.

Sir Neville Nichols, President, CDB

“The OECD has no legal authority to take this kind of action against countries that are not partied to the OECD agreement. I believe the countries affected, which are not part of the OECD should seriously consider taking legal action against the OECD, either in the International Court of Justice, or by filing a complaint at the World Trade Organisation. At the root of this so-called harmful taxation action by the OECD is naked protectionism. What they are really trying to do is to protect their financial centres from competition, from financial centres in othercountries.”

Nichols feels the Caribbean community should not adhere to the OECD demands, but should adopt a different approach all together when it comes to dealing with tax evaders.