Building Capacity and Implementing Effective Tax Policies Crucial for Small Island Developing States, says Minister Ryan Straughn

Building capacity and putting the right tax policies in place will be critical as Barbados and other small island developing states continue to manoeuvre the constantly changing global tax environment, says Minister in the Ministry of Finance Ryan Straughn.

In fact, pointing to the continued shifting goalposts within the international tax arena, he said it was not lost on the Government that it had to put certain systems in place to

ensure compliance so as to escape being blacklisted.

“The Government of Barbados is committed to reforming not just the international financial architecture but certainly within the context of how tax is administered, that we too must ensure that there is the removal of any archaic system with respect to how taxes are derived and how they are paid and shared equally globally,” said Straughn.

“The formulation of the right kind of tax policies and posture of tax administrators is critical to helping small island developing states like Barbados travel a path in the global environment. Tax administration and tax policy is crucial to the building of investor confidence, business confidence and confidence among the taxpayers as consumers.”

He made the comments in a pre-recorded video message at the opening of the Commonwealth Association of Tax Administrators (CATA) leadership programme at the Hilton Barbados Resort on Monday.

Straughn said Barbados and other developing states should put systems in place to ensure they are more agile and better able to respond to changes in the international tax landscape, but at the same time respond to the needs of citizens.

“As tax administrators, we recognise that in an environment where tax sovereignty in today’s world is in question, our reality as small island developing states dictates that we have to chart a path that is consistent with our social policy and economic policy mandate.

“Therefore, as the global environment continues to change with the imposition of a minimum global tax rate, it is important that as tax administrators that we remind ourselves and our citizens that the ability for us as a country to do business is contingent on the systems we do put in place, the processes within which we exchange information in order to ensure that the reputation of Barbados . . . and anybody doing business in Barbados, that they can feel confident that the place is a well-regulated environment,” said Straughn.