BIBA ‘up to the task’

THE Barbados International Business Association (BIBA) has been challenged to quadruple the level of international business on the island over the next decade.

So says BIBA President, Julia Hope, who says the challenge was issued by Prime Minister Mia Amor Mottley to breathe new life into the sector which has taken a significant hit in recent years. While BIBA is up to the task, Hope says there are quite a few challenges which if surmounted, could ultimately lead to opportunities for growth in the sector.

“We have to increase the volume of international business in order to enable the island to thrive and we are willing to take up that challenge,” she assured. The sector currently employs approximately 5 000 persons – 90 per cent of whom are Barbadian. It also contributes 60 per cent of the island’s corporation tax.

Hope was at the time speaking to members of the media yesterday morning after a church service at the St. Cyprian’s Anglican Church to mark the start of International Business Week 2018. She explained that one of the main challenges is the fact that every piece of legislation governing the international business sector in Barbados has to undergo changes by the end of this year.

This is required if Barbados, like the other 100 countries around the world are to fall in line with the OECD’s Base erosion and profit shifting (BEPS) programme, which refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.

Giving a brief update on some of the challenges facing the industry the BIBA president stated: “There was a delegation from the government that went to Paris last week to present the Barbados solution to that programme (BEPS) and it means we have to change the entire suite of international business legislation by the end of the year.”

“Whilst obviously, the focus and interest is on the IMF, the BERT programme, from the perspective that it affects the entire country, we also have to focus ourselves on the impact to the industry with regard to the BEPS programme. That is where our solid, dedicated focus is at the moment.”

Hope revealed that in February a BIBA Task Force was set up comprising the individuals from the private sector which feeds into the government through the Ministry of International Business and Industry.

“And there have been working groups set up to deliberate on the changes that need to be made so we are quite a way down the road now. It has taken a lot of dedication and service from individuals.... it has been a real challenge and it is difficult. Every piece of international business legislation needs to be changed.”

She said this includes the International Business Companies Act., the Societies with Restricted Liabilities Act as well as the Exempt Insurance Act.

“So the BIBA Task Force, the Legal Professions Committee on that task Force has identified every change that needs to be made in the legislation.”

“What we are seeing coming out of this is really an opportunity. We are doing something we have never done before. We actually have to look at all of international business and make determinations about our future. So it’s a really good opportunity and a good time to engage with government who have been extremely collaborative. It’s been very good environment for us to work in. And I think we are really optimistic.”

“It is a really good opportunity to actually embark on something that we have not done before. We have been speaking for years about trying to look at the entire suite of international business legislation and get it to a standard where we could really compete with other jurisdictions, this is now our opportunity. So the timing is hard to be able to achieve, but it is a good opportunity to get everything done right.

Hope says in addition to changes that are coming in the sector, the ease of doing business in Barbados is a problem that must be also be tackled. (JH)