OECD: Curaçao noncompliant. Economic reform needed.

Summary in Papiamentu below

Curaçao has harmful tax laws, concludes the Organization of Economic Cooperation and Development (OECD) report, Harmful Tax Practices – 2017 Progress Report on Preferential Regimes released a week ago.

The OECD’s Forum on Harmful Tax Practices assessed 164 jurisdictions against internationally-agreed standards set in the OECD/G20 base erosion profit shifting (BEPS) agreements. According to the report, 20 nations/territories, including Curaçao, are noncompliant. In our case the Tax exempt facility, the Export facility and the EZone facility don’t comply with international standards. The BEPS standards on preferential tax regimes are designed to stop countries from offering tax breaks for geographically mobile income that facilitate base erosion and profit shifting.

While countries all around the world have already reacted on this report, Curaçao has remained silent. No reaction from Government, Parliament or even our International Financial Sector (IFSC). This is very disconcerting. Especially when we add to the mix our problems with correspondent banks, an uncertain monetary union with Sint Maarten and the criminal case against the President of the Central Bank. Where is the sense of urgency? As soon as this report becomes widely known, some groups will dust off their tired anti-globalization rhetoric and start accusing the world and The Netherlands. Others will refer to the past glory days of offshore, without offering solutions. What we need is a conversation about creating a conducive environment where our financial businesses can build deep capabilities, grow, internationalize and in the process, create a range of good jobs. We need to overhaul our rigid labor market and migration policies. We need to build more efficient legislative and bureaucratic systems to not only comply with new international norms, but to build a more competitive economic environment. To become defensive and mad at the world wil not help. Let’s use this report to not further delay needed reforms.

RESUMEN NA PAPIAMENTU

Kòrsou tin lei fiskal dañino, esta leinan ku no ta konforme palabrashonnan internashonal segun e rapòrt di e Organisashon pa Koperashon i Desaroyo Enonómiko (OECD) Harmful Tax Practices – 2017 Progress Report on Preferential Regimes ku a keda publiká 8 dia pasá.

OECD a revisá 164 huridikshon rònt mundu i a haña ku 20, inkluso Kòrsou, no ta kumpli. No ta kumpli ku palabrashon ku ta prohibí hende òf kompania ku tin entrada geográfikamente mobil, keda sin paga belasting ku mester paga. Den nos kaso ta trata di e leinan ku ta ofresé fasilidatnan pa ku Ezone, eksportashon i dispensashon.

Mientras hopi pais a reakshoná riba e rapòrt, nos a keda ketu te ainda lokual ta prekupante. Nos sektor finansiero no ta pasando den su mihó tempu prinsipalmente si nos konsiderá problemanan ku bankonan koresponsal, un union monetario ku Sint Maarten sin kurso i e kaso kriminal kontra di e presidente di Banko Sentral.

Segun e rapòrt Kòrsou lo a bai di akuerdo pa kambia e leinan ariba menshoná. Mi punto ta ku nos no ta bai dilanti ku simplemente trese kambio awe i despues krusa brasa. E tipo di reglanan internashonal aki ta kambia periódikamente. Keda apliká un strategia di pone pleister kada biaha no ta duradero. Si nos ke pa nos sektor finansiero floresé, nos no por tarda mas pa trese e reformanan nesesario pa modernisá nos merkado di labor, fleksibilisá nos maneho di atmishon i tuma e otro pasonan pa hasi nos ekonomia kompetitivo.

Author: alexdavidrosaria

Alex Rosaria is from Curaçao. He has a MBA from University of Iowa. He was Member of Parliament, Minister of Economic Affairs, State Secretary of Finance and United Nations Development Programme Officer in Africa and Central America. He is an independent consultant active in Asia and the Pacific.

One thought on “OECD: Curaçao noncompliant. Economic reform needed.”

  1. Alex, if you cannot open the eyes of our sitting government to these issues who can? The words: “it’s the economy stupid” ring true everywhere but we choose to close our eyes and ears.

    On Sun, Oct 22, 2017 at 10:00 AM, Alex David Rosaria Blog wrote:

    > alexdavidrosaria posted: “Curaçao has harmful tax laws, concludes the > Organization of Economic Cooperation and Development (OECD) report, Harmful > Tax Practices – 2017 Progress Report on Preferential Regimes released a > week ago. The OECD’s Forum on Harmful Tax Practices assessed 1” >

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