In light of recent developments, the St. Kitts-Nevis government stands firm in its commitment to international tax transparency. Despite being labeled a tax haven by the European Union, the Federation reassures that it is a dedicated and fully cooperative jurisdiction.
Here are some key points regarding the response from the St. Kitts-Nevis government:
- Alongside St. Kitts-Nevis, the US Virgin Islands and the Bahamas were also identified by the European Finance Minister for non-compliance with tax regulations. Nassau, however, has expressed disagreement with this classification.
- The EU’s main concern with St. Kitts and Nevis lies in the realm of Fair Taxation, specifically addressing harmful preferential tax measures and the facilitation of offshore structures for profit attraction.
- In an official statement, Financial Secretary Mrs. Hilary Hazel highlighted the Federation’s willingness to amend legislation to align with the EU’s requirements. Concrete commitments have been made to address concerns and foster cooperation moving forward.
- St. Kitts and Nevis prides itself on meeting international standards for transparency and exchange of tax information, as evidenced by its compliant rating from the OECD and participation in the Multilateral Convention on Mutual Administrative Assistance for Tax Matters.
- Legislative steps have been taken to implement the Common Reporting Standards and join the BEPS Inclusive Framework, emphasizing the Federation’s dedication to anti-BEPS measures.
- St. Kitts and Nevis aims to rectify EU concerns by December 31, 2018, through comprehensive legislative reviews and amendments to align with international tax best practices.
Furthermore, the Financial Secretary highlighted the removal of St. Kitts and Nevis from multiple national lists of non-cooperative jurisdictions by prominent EU members, indicating recognition of the Federation’s efforts in transparency.
The recent decisions by the EU have spurred action among CARICOM leaders, urging regional finance ministers to convene promptly to address the implications and consider new strategies in response to the changing landscape of international tax regulations. As the global tax landscape evolves, countries like St. Kitts and Nevis are adapting and demonstrating their commitment to transparency and cooperation on the international stage.
