As reported in the Guardian newspaper, UK, in April 2021 USA President Joe Biden proposed sweeping global tax reforms to limit the ability of corporations to shift profits overseas, and agreed a worldwide minimum tax rate.
The proposals were designed to tackle the very low rates of tax paid by some companies that use complicated webs of companies to shift profits out of major markets like the UK, where most of their revenues are earned, and into low-tax jurisdictions like Ireland and the Caribbean. Economists estimate that the sums lost to exchequers around the world from profit-shifting have risen as high as US$427bn (£311bn) annually.
In October 2021, most of the world’s nations signed up to a historic deal to ensure big companies pay a fairer share of tax. A hundred and thirty six countries agreed to enforce a global minimum corporate tax rate of at least 15% and a fairer system of taxing profits where they are earned.
UK Chancellor Rishi Sunak said, “We now have a clear path to a fairer tax system, where large global players pay their fair share wherever they do business”.
Tax evasion is disliked all around the world.
However, in SVG, Taiwan and the super-rich foreigners of Mustique and Canouan are getting away with not paying their fair share of tax. Taiwan could well paying tax on fish its fishermen catch under licence from this country, and even with the Mustique Act No. 48 of 2002 and the Canouan Act, the super-rich foreigners of Mustique and Canouan do not pay their fair share of tax. The ULP regime allows this.
According to the Leader of SVG Green Party, Warrant Officer Ivan Bertie O’Neal BSc (Hons), MSc, MBA, who is a university graduate in Accounting, Finance and Economics from Oxford Brookes University, England, the effect of these ungodly Acts perpetuates poverty in SVG and weakens our economy.
Since the formation of the Green Party in 2005, Warrant Officer Ivan Bertie O’Neal BSs (Hons), MSc, MBA has had the foresight to call for an end to the tax exemptions given to Taiwan and the super-rich of Mustique and Canouan; since this is grossly unfair to the black poor and indigenous people of SVG, and worse, they are counterproductive to sustainable development as there is no net benefit to our people and country.
Warrant Officer Ivan Bertie O’Neal BSc (hons), MSc, MBA says that it is horrific that black Vincentians struggle to live under this apartheid tax regime, suffering high unemployment and poverty, while the super-rich foreigners enjoy tax and customs duty exemptions to import into SVG private jets, expensive yachts and all materials needed to build multi-million dollar mansions.
Many poor people in SVG have no electricity and water in their homes, and many children go to bed hungry. Unskilled workers in SVG earn as little as EC$ 600 a month, yet Mustique charges up to EC$ 135,000 a week for their villas. Is tax paid on this? See http://www.mustique-island.com/choosing_a_villa
The tax apartheid must be abolished immediately and we must cut ties with Taiwan and the super-rich of Mustique and Canouan for practising apartheid in SVG.
SVG needs change and it needs to modernise too. Although SVG signed up to a global minimum corporation rate in principle, SVG actually needs to impose that tax rate on Taiwan and the super-rich of Mustique and Canouan. They should be taxed the same rate as SVG companies.