Eleventh-hour changes to the Fatca legislation were made following yesterday’s Opposition boycott of debate.
Following the Opposition’s no-show on the crucial legislation yesterday, Government— pressing on solo with final stage examinations— deleted parts of the legislation which the Opposition had concerns about.
“This is the tyranny of the minority!” declared Finance Minister Colm Imbert on the Opposition’s absence.
“It’s absurd for the Opposition Leader to say this isn’t important and will only affect big business! That’s inaccurate and misleading. Failure to pass this law will affect all 1.3 million souls in T&T especially the little people!”
“We’ll be in a situation where we in T&T won’t be able to do any transactions with the outside world. Nobody will be able to source funds to pay for their children’s schooling abroad, buy medication or undertake medical procedures, manufacturers won’t be able to buy goods. Families won’t be able to send or receive money from overseas.”
The US has made it clear T&T should be Fatca-compliant and pass the bill by February 2017.
However, with yesterday’s Opposition “boycott” and no vote on the bill, Parliament broke for the Christmas recess yesterday without passage of the bill. Parliament resumes in early January—weeks before the compliance deadline.
Imbert stressed T&T had two extensions from the US Government on the bill. He didn’t think T&T will receive a third.
The law enables local institutions to identify and report to the US Internal Revenue Service (IRS) on the accounts of US clients.
Failure to comply with Fatca would mean all local financial institutions and US citizens will be subject to a withholding tax of 30 per cent applied to all US-sourced income. It will halt all on-line financial transactions with the US, also affecting T&T’s banking sector, the economy and US/T&T diplomatic relations.
Imbert concluded debate on the controversial legislation when proceedings resumed yesterday.
This, after the Opposition walked out of Parliament on another issue, last Friday when debate was to resume. Then, Government had continued making contributions, solo.
But the Opposition had maintained its call for scrutiny by a Joint Select Committee comprising parliamentarians of all sides from both the Senate and House of Representatives.
An hour before yesterday’s session, the Opposition stated it would not be joining debate.
Imbert, said, “This is a very strange situation we find ourselves in - all seats empty. This is the fifth time Government has prepared for debate and accommodated the Opposition and sent them amendments . But we never got Opposition amendments. This is too important a situation to be undermined by the Opposition!”
He stressed Government has removed clauses the Opposition has concerns with. Chief of these is removing the stipulation for the “Minister” to designate the authority to pass tax information to the US. That power will be placed in the T&T Inland Revenue division
Also removed were clauses allowing the tax agreement to apply to other states. Government said this law will allow the agreement to apply to the US only and any future agreements with other states will have to be done on their own. The minister will only be involved after Central Bank issues guidelines for implementation of the agreement.
Noting the Opposition was still in the building following its briefing, he added, “ I appeal to the Opposition, come downstairs! Come inside! Don’t be cowardly!”
After Imbert concluded, Government moved to committee stage to examine — and sanction — clauses of the legislation, though the Opposition wasn’t present.
The legislation has 30 clauses, all of which were approved . The bill now awaits final vote when Parliament resumes in January.