Non-Profit Organisations, in Trinidad and Tobago, may be in danger of losing their property
With 171 members, the Global Forum on Transparency and Exchange of Information for Tax Purposes is the leading international body working on the implementation of global transparency and exchange of information standards around the world.
The Global Forum brings 171 countries and jurisdictions together, including all G20 countries and financial centres. The majority of its members are developing countries. Together they work on an equal footing to put an end to offshore tax evasion.
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Loop News: T&T's tax non-compliance worrying, British-C'bean Chamber says
October 24, 2019
Greater action by legislators is needed to rectify Trinidad and Tobago's non-compliance with the Global Forum on Transparency and Exchange of Information for Tax Purposes.
That was the consensus of members who attended the British-Caribbean Chamber of Commerce’s (BCCC) event held last Thursday titled: “A Discussion on the Global Forum on Transparency & Exchange of Information”.
The event, hosted in conjunction with the Banker’s Association of Trinidad and Tobago (BATT), outlined to the business community the functions of the Global Forum and the ramifications of Trinidad and Tobago’s continued non-compliance with such.
Dr. Ravi Rampersad, Chair of the BCCC indicated that, “the BCCC is of the view that the continued ‘blacklisting’ of Trinidad and Tobago as per this Global Forum, not only represents a current challenge and cost to doing business in our country but also marks a potential impediment to future growth and development of our financial sector, with implications for the wider economy and society.”
This, as the BCCC noted that Trinidad and Tobago remains the only Caribbean country on the European Union’s list of non-cooperative tax jurisdictions and the slow pace of legislators on this issue is a cause for concern.
The British-Caribbean Chamber noted bills needed to comply with global forum requirements, were introduced in Parliament on May 2018 and have been before a Joint Select Committee (JSC) since that time. It said while a final deadline of December 31, 2019 was set for the response from the JSC, this does not necessarily translate to speedy passage of these bills in parliament.
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Guardian News: Bankers Association call for Global Forum legislation
November 03, 2020
The Bankers Association is again lobbying for the passage of key legislation which will allow T&T to become compliant with the Global Forum on transparency and exchange of information for tax purposes.
During a breakfast seminar held at Funsplash Waterpark in Debe, manager at Republic Bank Amar Ramlogan said the seminar was part of the BATT’s strategy to lobby for the passage of the legislation.
This includes the Income Tax (Amendment) Bill 2019, the Mutual Administrative Assistance in Tax Matters Bill (2018) and the Tax Information Exchange Agreement (TIEA) Bill 2018.
Ramlogan said this legislation has been tabled in Parliament but is yet to be debated or passed.
He said T&T is currently deemed non compliant by the Global Forum because of absent legislation.
If the pieces of legislation are passed and enacted, Ramlogan said a peer review will begin and T&T could possibly get a new rating.
If this does not happen, Ramlogan explained that T&T will remain blacklisted. “The country will earn the reputation of being a tax haven,” he warned.
Ramlogan said this will have a negative impact on the economy.
“Not having these standards will affect the nation’s economy as it increases T&T’s susceptibility to instances of financial fraud and financing of terrorism. Government revenues are eroded as a result of tax avoidance and tax evasion. There will be difficulty for foreign firms to engage in business relations and investments domestically,” he said.
Ramlogan said any business with wire transfers and credit card payments that trade finance will impact the local economy and businesses in T&T.
“Because what is happening in corresponding relationships is they are applying enhanced measures in terms of reviewing the wires so we will see wires taking longer time to go out and it will affect our supplier in terms of paying and making purchases online like in Amazon,” he added.
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Guardian News: Imbert happy as House passes Global Forum bill
September 14, 2024
The House of Representatives has passed a bill designed to help T&T get off the European Union’s blacklist of non-cooperative tax jurisdictions - and to also be removed from the Global Forum’s non-compliance list.
The 18-Miscellaneous Provisions (Global Forum) Bill was piloted by Finance Minister Colm on Friday. It was the first item of work on which the House embarked immediately after the fifth and final session of the 12th Parliament began.
The bill was passed with amendments from the EU. It required only simple majority - Government votes - for passage. The Opposition had queried and objected to various aspects.
In piloting debate, Imbert said the point of the bill is to remove T&T from the EU’s list of non-cooperative jurisdictions for tax purposes.
The bill makes amendments to 16 laws, ranging from corruption prevention and anti-terrorism law to the Companies Act and non-profit organisation laws.
Provisions for companies strengthen the rules of identifying beneficial owners, increases reporting obligations and certain penalties and introduces new sections - including empowering the Registrar General to inspect registers/books/documents of companies, trusts and non profit entities.
The bill empowers T&T’s regulatory bodies to move effectively to exchange tax information with other jurisdictions in line with various agreements. Imbert said it introduces strict controls to prevent misuse of tax information, protect taxpayers’ rights and ensure information exchange adheres to the terms of agreements to which T&T is bound.
He said the bill is designed to ensure T&T remains attractive to global investors who are compelled to comply with international standards of tax transparency and accountability.
The bill was developed in consultation and under the guidance of the Global Forum Secretariat, which visited T&T in March to do a mock peer review on transparency and tax information exchange.
Imbert said additional amendments on certain clauses - which he received Thursday night - were provided by the European Union Anti-Money Laundering and Counter-Terrorism Financing (AMLCTF) Global Facility. That facility is currently in T&T on a mission focused on beneficial ownership and has been engaging with state agencies. Their experts provided valuable guidance on the bill’s provisions, he added.
Imbert said the amendments were critical as, “if we don’t accept the recommendations of the Global Forum/EU team, we may run the risk of not being successful in the peer review process in which we’re currently engaged to get off the EU blacklist and the G non-compliance list.”
“The bill reflects T&T’s commitment to global standards of tax transparency. We’ve been given a series of deadlines to achieve our objective of coming off of the grey list/black list/compliance list - whatever you want to call them - by year-end.”
Imbert said he wrote the chairman of the Code of Conduct Group in the European Council in July outlining the extensive efforts T&T’s undertaken and reaffirming the commitment to meeting the necessary requirements for T&T’s removal from the list of non-co-operative tax jurisdictions.
Imbert said he was satisfied Government achieved a robust flexible strategy to deal with T&T’s removal from the EU’s blacklist and that T&T has a strong working relationship with the Global Forum and OECD.
Saying the bill was absolutely essential, Imbert urged MPs to work towards removing T&T from the grey and black lists so it could become a destination “that wouldn’t have that stigma” and foreign investment wouldn’t be affected.
Global Forum Bill
As stated in the article excerpt above the Global Forum bill made amendments to 16 laws including the non-profit organisation law. It amends the Non-Profit Organisations Acts, No. 7 of 2019 to enhance compliance. It repeals references to the renewal of registration. It modifies section 16 of the Non-Profit Organisations Act to specify that if a Non-Profit Organisation (NPO) fails to notify the Registrar General or submit any required documents, the Registrar General is authorized to impose a penalty of $300 for each month that the NPO fails to comply.
A new subsection has been added to section 21 authorizing the Attorney General to apply to the High Court for an order of forfeiture against the property of an NPO in cases where the organization has been deregistered for flagrant breaches and fails to apply to the registrar for restoration.
For more information on the amendments to these laws click here.
All the views expressed in this article may not necessarily reflect those of T.E.A. Watchers.
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