Shaw: Government still plans to establish offshore financial centre

Saturday, November 07, 2009 2:46 PM

News

Alicia Dunkley

Friday, July 03, 2009

FINANCE Minister Audley Shaw says Government will forge ahead with plans to establish an International Financial Centre despite concerns raised by world powers United States of America and Britain about offshore tax havens.

Shaw made the disclosure during a sitting of the House Tuesday in response to queries by Central Kingston Member of Parliament Ronald Thwaites about the wisdom of positioning Jamaica as an offshore centre since the American and British governments have indicated that they willing to try to prevent companies from using offshore facilities.

The finance minister, however, declared that the establishment of the proposed International Financial Centre (IFC) did not equate with creating an offshore banking industry or a tax haven.

"The concept of the IFC represents another innovative and pragmatic mechanism through which the Government will seek to unlock Jamaica's potential as a player in the global financial market," Shaw explained.

"It is the Government's intention to provide a location where the services of accountants, lawyers, financial advisors, information technology specialists and clerical workers can be accessed," he added.

In noting that the benefits included job creation, increased Government revenue, among others, Shaw said the "IFC has been conceptualised to operate in a fundamentally different manner from what are recognised as tax havens.

"The centre will serve as an outlet facilitating offshore offices and services in addition to the outsourcing of different financial services and products," Shaw added, noting that Cabinet last month approved the establishment of a statutory company to oversee the development of the IFC.

He said the next steps include the immediate drafting of appropriate legislation and the refinement of the list of products and services that will be offered in this jurisdiction.

He also addressed Thwaites' concerns over whether the proposal of an IFC would meet the taxation requirements of G20 countries.

"I can confirm that and, in fact, we have been signing a number of double taxation treaties," Shaw said.

As to whether the facilities projected for Jamaica would escape the criticisms levelled at other countries which are tax havens, Shaw said, "I can very well give that assurance."

He also said some $100 million was allocated in the 2009/10 budget for the promulgation of the IFC this year.

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