Minister Curtis Dickinson On G7 Communique

June 7, 2021 | 7 Comments

Following the communique from the G7 Finance Ministers, Minister of Finance Curtis Dickinson said that while “we support the overall objectives,” as far as the “proposals presented on tax, it is critical that any agreed framework to establish a global minimum tax, must respect a country’s right to sovereignty in relation to its tax system.”

The G7 — which includes the United States, Japan, Germany, Britain, France, Italy and Canada — said they have agreed to a “global minimum tax of at least 15% on a country by country basis.”

Minister Dickinson said, “Bermuda has had a history of supporting quality business, while adhering to fiscally responsible policies through a balanced long-term growth agenda.

“Given the importance of cross-border trade to the Bermuda economy, Bermuda authorities have always been committed to ongoing compliance with international standards for financial regulation, transparency, and international cooperation. We have been subject to independent, international scrutiny by various global standard-setting bodies, which confirms this position.

“We have been actively involved in international discussions on regulatory and tax matters and have continued to liaise with our key trading partners, including the UK, the USA and the EU, on financial and other relevant matters.

“We are fully engaged with the current multilateral work of the OECD Inclusive Framework Committee on Base Erosion and Profit Shifting [BEPS] to address international concerns around base erosion and profit shifting.

“In relation to the communique issued this weekend by the G7 Finance Ministers, we support the overall objectives outlined in that comprehensive document. We laud efforts to effectively address climate change, combat financial crime, create greater financial stability and help vulnerable economies.

“With regard to the proposals presented on tax, it is critical that any agreed framework to establish a global minimum tax, must respect a country’s right to sovereignty in relation to its tax system. Any outcome that impacts this right is outside the original agreed aims of the OECD BEPS initiative. It also does not give appropriate consideration to the rights and needs of those jurisdictions which lack the economies of scale and resources of larger jurisdictions.

“Bermuda’s consumption-based tax regime has been in place for almost two centuries. It is a system shaped for efficiency in a very small and undiversified economy, particularly considering the vagaries of corporate profits in the financial services sector. Our existing system yields a ratio of total government receipts to GDP of approximately 16% on average, which we deem appropriate for an economy such as ours.

“As these matters are progressed, conclusions reached must incorporate principles of fairness and right to sovereignty in this important area. There should also be appropriate recognition of the considerable work done, by countries such as Bermuda, to be effective partners in promoting and implementing robust standards for strong and robust regulation, transparency and international cooperation.”

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Comments (7)

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  1. INDEPENDENCE BERMUDA says:

    It’s high time we dump the tea in the harbor on the UK and send a clear message that we control our own future and go independent! Then we can have our own military arms and pirate Navy programs and get the USA to pay us to be a good neighbor like Cuba or North Korea.

    • sandgrownan says:

      LOL…this is perfect for Curtis though…he gets to raise taxes and blame it on someone else.

    • question says:

      This has nothing whatsoever to do with whether or not we are independent. In fact, a good relationship with the UK might be very useful right now, because there is no other hope of exerting any influence.
      Biden could not give a rat’s a $ $ about Bermuda.

    • Unbelievable says:

      @INDEPENDENCE BERMUDA….The reason why Bermuda will never go independent is simply becuz of the $3 billion debt. We have zero resources, and very importantly, ZERO CLOUT on the world stage to pay back that debt. We just can’t do it, I’m sorry. No Premier and/or Finance Minister will course correct the country after this and so all this “tea dumping” will be another wasted exercise.
      The PLP was warned years ago to keep a close eye on that debt and they scoffed at all the nay-sayers and we are exactly where the experts said we’d be.

      • It’s a good idea says:

        Develop short range capabilities. Not a bad idea as it works for other nations who have no resources.

  2. Joe Bloggs says:

    “Minister Dickinson said, “Bermuda has had a history of supporting quality business, while adhering to fiscally responsible policies through a balanced long-term growth agenda.”

    Uh huh

    • Unbelievable says:

      @Joe Bloggs….exactly. “uh huh”. I like Curtis but he’s just saying words to paint a rosy picture. What long-term agenda is he talking about? The OBA had started to turn something around by the time they were removed from office but the PLP have now had 4 years to show a turn around and they have not. And they simply won’t. I’ll give it that it doesn’t help to be in the midst of a pandemic but much of that stuff that was in their 2020 election manifesto (which was in the 2017 election manifesto) should have been started and finished by now. What’s the hold up? They have all this power but haven’t done anything with it.

      Once Curtis has left the Finance Minister’s job, the next Finance Minister will also give us this kind of language and be no place.

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