Finance Minister Colm Imbert yesterday withdrew from the committee stage (The Foreign Account Tax Compliance Act) FATCA legislation and referred the matter to a Joint Select Committee (JSC), stating that Government caved into the Opposition’s request because of their “behaviour” and that their demands were nothing short of blackmail and holding the country to ransom.
“When this matter goes to the JSC it returns here on February 3... and I want to signal to the members Opposite, it still has to go to the Senate afterwards, so in order to meet our February deadline we will be taking the vote when the report of the Joint Select Committee returns to this Parliament,” Imbert said.
The JSC, comprising members Attorney General Faris Al-Rawi, Imbert, Stuart Young, Marlene McDonald, Dr Tim Gopeesingh and Dr Bhoe Tewarie have to report to Parliament by February 3.
Imbert said T&T has to be in full compliance of the bill on or before September 30.
The legislation must be passed in the Lower and Upper Houses by February 28, Imbert said.
From March 1 to September 30, Imbert said things must be put in place to operationalise the legislation to allow automatic reporting.
In response, Persad-Bissessar said if they were afraid of FACTA, as the Government has claimed, they would not have asked for the JSC.
She said their reason for asking for a JSC was the fact that they could not trust the Government.
Persad-Bissessar said the Government had promised to send the legislation to JSC, but reneged.
In a January 4 letter, sent by Persad-Bissessar to Prime Minister Dr Keith Rowley, which detailed the UNC’s position on the legislation, she said she failed to write one thing.
“But I am in the Parliament today and want to say it, we do not trust this Government. Where it is that fundamental rights are going to be violated as in this legislation, complex and far-reaching clauses…over reaching within it, then that is an ideal kind of legislation to go before a JSC.”
In welcoming the motion going to a JSC, Persad-Bissessar said they have been hearing about allegations of PNM financiers involved in terrorism and drug lord.
“This kind of sensitive information can be used by people who want to blackmail and kidnap. Finally, the minister has kept his promise today...after all these months we could have completed it.”
She said the Opposition’s concern was to always put checks and balances in place.
Coming out of the JSC, Persad-Bissessar said they would be able to invite and get advice from independent experts in financial and legal drafting.
Persad-Bissessar said the original FACTA bill had 30 clauses, but Government had made amendments three times.
“Is that bending over backward to please us? No. What impact will this have on our challenging foreign exchange? The IRS want their taxes. If there are persons caught within this legislation and they have to pay taxes to the IRS in the United States. Do they want it in T&T dollars? No way. “
Another concern the Opposition Leader had was the fact that the deadline for the legislation kept changing.
“This is the first time we are hearing of this new deadline.”
Imbert said now that Government gave in to the Opposition’s demands, they will not be playing any games.
“They want a joint select. There is absolutely no reason for it. They want it. They are blackmailing the country and holding the country to ransom with their votes. That is how they play politics. This would give the committee 21 days to resolve this matter.”
Stating that FATCA had been debated at “infinitum” in the public, Imbert said it was absurd for Persad-Bissessar to say that she was not sure this was the same bill.
Imbert said when one examined why the Opposition walked out of Parliament twice and refused to submit amendments to the legislation, one can only conclude that, “There is some problem that is affecting them with respect to the declaration of foreign accounts in the United States. That is the inevitable conclusion.”
Imbert said the Opposition’s demands for a JSC were “tenuous and spurious” as they were the ones who approved the Inter-Governmental Agreement with the United States.
He said the Opposition claimed that through a JSC they can have consultation with stakeholders.
However, Imbert said that the American Chamber of Commerce, Bankers Association of T&T, Central Bank, Security and Exchange Commission, Board of Inland Revenue and the T&T Chamber of Commerce who have responsibility to send information on accounts of US citizens doing business in T&T have indicated that there was no requirement for a JSC and amendments to the legislation.
Imbert said the Government comprehensively addressed all matters raised by the Opposition in the legislation.
“The few remaining issues are relating to sovereignty and operation of the executive of T&T.”
BANKERS ASSOCIATION PLEASED WITH PROGRESS
In a statement yesterday, after the adjournment of Parliament, the Bankers Association of T&T (BATT) said it was “pleased to see a middle ground has been reached between the Government and Opposition” on the proposed legislation which has now been referred to a Joint Select Committee (JSC).”
“However, we wish to remind the Government and the Opposition that time is not on our side. It is our hope and expectation that the JSC will meet its February 3rd reporting deadline, in order to have the Bill passed to meet the country’s FATCA obligations. BATT will continue to monitor the discussions on FATCA and is available to participate in providing the JSC with any information required to assist the committee in their deliberations.”