STATEMENT BY
FRED MITCHELL MP
OPPOSITION SPOKESMAN ON FOREIGN AFFAIRS AND FOREIGN TRADE

11th November 2009

…ON THE NEED TO STOP DITHERING AND SKYLARKING OVER TAX INFORMATION EXCHANGE AGREEMENTS (TIEA)

The Bahamas Government needs to act with dispatch to settle the remaining agreements for tax information exchange that appear to be vital to the survival of the financial services sector in The Bahamas.

We reject unequivocally the attempt by the FNM at its recent convention through its Minister of State to blame the PLP for TIEAs not being signed or for not initiating further agreements.  The Minister knows better.

The fact is that the sector did not require TIEAS as the standard while the PLP was in office.  It was the position of the sector and the government and the previous FNM administration that there would only be one TIEA signed; and that was with the United States , because our failure to sign at that time threatened our tourist business.  The standard for a well regulated jurisdiction changed within the last year and on the FNM’s watch.  Once the standard changed, it was therefore the FNM administration’s obligation to get on with it and not dither and skylark in settling the agreements; and not try to fool the Bahamian people about their dithering over it.

Other countries in the region such as Bermuda and Cayman have concluded with dispatch the agreements.  The Bahamas Government must stop trying to excuse their skylarking behavior and get on with it.