Antigua among Caribbean States Named by OECD for CIP Programmes

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Wednesday 17th October, 2018-Antigua and Barbuda is among 21 countries listed by the Organization of Economic Cooperation and Development (OECD) whose CIP programmes are identified as ways in which many are evading their tax obligations.

Captioned “Residence/Citizenship by Investment Schemes”, The OECD detailed “While residence and citizenship by investment (CBI/RBI) schemes allow individuals to obtain citizenship or residence rights through local investments or against a flat fee for perfectly legitimate reasons, they can also be potentially misused to hide their assets offshore by escaping reporting under the OECD/G20 Common Reporting Standard (CRS).”

The OECD says “In particular, Identity Cards and other documentation obtained through CBI/RBI schemes can potentially be misused abuse to misrepresent an individual’s jurisdiction(s) of tax residence and to endanger the proper operation of the CRS due diligence procedures.”

Potentially high-risk CBI/RBI schemes are those that give access to a low personal income tax rate on offshore financial assets and do not require an individual to spend a significant amount of time in the location offering the scheme.

Seven other Caribbean states, namely St. Kitts and Nevis, Barbados, The Bahamas, Grenada, Dominica, Montserrat and Turks and Caicos Island are included in the list.

The report outlined that “Financial Institutions are required to take the outcome of the OECD’s analysis of high-risk CBI/RBI schemes into account when performing their CRS due diligence obligations.