PLP: Oxfam Report Is “Inaccurate & Misleading”

The PLP agrees with the Government and Bermuda Business Development Agency’s “condemnation of the inaccurate and misleading report released by Oxfam labeling Bermuda as the worst corporate tax haven in the world,” Shadow Minister of Economic Development Kim Wilkerson said, adding that “it is extremely disappointing that Oxfam would release such an alarmingly under-researched report.”

Senator Wilkerson said, “The Progressive Labour Party agrees with the Bermuda Government and Bermuda Business Development Agency’s condemnation of the inaccurate and misleading report released by Oxfam labeling Bermuda as the worst corporate tax haven in the world.

“It is extremely disappointing that Oxfam would release such an alarmingly under-researched report. Nowhere in the 46-page report [PDF] is there an explanation as to how the researchers applied their ranking criteria to Bermuda.

“It is evident that it could not have been applied appropriately because one criterion examines the lack of cooperation with international efforts against tax avoidance.

“Considering this, it is alarming that the 41 Tax Information Exchange Agreements [TIEAs] Bermuda has entered into with other jurisdictions have been completely excluded from the review.

“Ensuring Bermuda is viewed globally as a credible jurisdiction was a high priority under the last PLP Government when significant efforts to achieve this were undertaken. The OBA Government has also clearly committed to preserving and expanding Bermuda’s excellent reputation.

“Similarly, the hard work of the Bermuda Monetary Authority in obtaining Solvency II equivalency for Bermuda must not be undermined by a report of this nature.

“The International Business sector is a key pillar of our economy and a true contributor to the economic and social fabric of both this country and, importantly, many others.

“The PLP, therefore, supports all efforts by the Government, the Bermuda Business Development Agency and industry stakeholders in refuting the Oxfam report and protecting the reputation of our island home,” concluded Senator Wilkerson.

Following the release of Oxfam’s report, Deputy Premier and Minister of Finance Bob Richards said the Government “notes with surprise and disappointment statements by Oxfam concerning tax and transparency in which Bermuda has been wrongly included,” and added that “Oxfam has made substantial errors in its claims.”

“Oxfam, directly and indirectly, appears simply to have ignored Bermuda’s internationally recognised role as a centre of corporate and tax transparency and compliance, a key ally in the fight against money-laundering and all criminal activities, and a committed partner in the initiatives of the OECD on tax reform under the BEPs initiative,” Minister Richards added.

Bermuda Business Development Agency CEO Ross Webber also responded to the report, saying “Unfortunately, many of the Oxfam assertions are based on flawed economics and lack of understanding.”

“We have long been at the forefront of transparency, cooperation and compliance with the highest international standards. That is more than evident in Bermuda’s numerous treaty partnerships with nations around the world and our leadership on guiding the evolution of regulatory best practices,” he said.

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