BUSINESS MONDAY: Will the EU continue to mount pressure on B’dos?

WITH Barbados having been removed from the European Union (EU) blacklist, questions remain as to whether that will be the end of it.

But as one individual has told Business Monday, nothing is cast in stone and the EU will be back again in some form or fashion as they continue their pressure on small jurisdictions like Barbados.

In fact, on the People’s Business a week ago, Ian Carrington, Director of Finance and Economic Development, touched on the subject.

He said the goalpost continues to be shifted and that both the Organisation for Economic Co-operation and Development (OECD) and the EU believed that Barbados has become too successful in that area and is encroaching on developed countries.

Those comments were made prior to Minister of International Business, Ronald Toppin, announcing the removal of Barbados from the blacklist.

The sector is one of the key areas of the local economy accounting for sizeable inflows of capital, job creation, and tax revenues. Data for 2020 show that the sector contributed heavily to corporate tax revenues. Income was given as $397.4 million, below the $458.5 million a year earlier.

However, evidence has demonstrated that since 2000, Barbados has been battling with the OECD and its sister agencies and even the G20, for the survival of the sector.

They have accused this country of being a tax haven, a non-compliant jurisdiction and other charges in what now appears to be a campaign for the island to get out of the business.

In the interim, several amendments have been made to existing legislation in Barbados.

Between late 2019, several legislative changes were made. Apparently, this does not appear to be much in the eyes of the international community.

So the country awaits the next step in this ongoing issue.