first_img Sharing is caring! Share EducationLocalNewsTertiary Professor Vaughn James advises Dominicans to learn the history of harmful tax competition by: – August 8, 2011 27 Views   no discussions Sharecenter_img Tweet Share In photo: Professor Vaughn James. Photo credit: northeasterncommunication.orgAt the opening ceremony of the International Taxation in the Caribbean Context Course yesterday, Professor Vaughn James advised Dominicans to learn the history of harmful tax competition.Professor James who is the facilitator of this five day course organized by the Department of Continuing Education of the Dominica State College, in explaining four reasons why the course is relevant to Dominica and Dominicans, informed participants tax breaks have been used by several countries as a means to attract investors.“Countries have been using tax competition to attract investors; countries give various tax breaks and tax incentives to various companies. ‘Come set up in my country and we will give you a tax break’. During the 1990’s tax competition got very fierce, several countries began to offer zero tax or low tax on income and these policies led to what we call the flight of capital from the more developed countries to the so called third world. So investors were leaving Europe and flocking to the Caribbean, to the Pacific and to African countries,” he said.“Those big countries didn’t like that, so they called what we were doing harmful tax competition and said since it’s harmful here’s what we’ll do; we will blacklist you put you on this name and shame list until you change your policies and bow to us. And on this list of thirty-five blacklisted countries, there were sixteen countries in the Caribbean and the OECD; that’s who led the charge, the OECD did not change their policy until all the countries had bowed down and said yes we shall change, we shall toe the line,” Professor James explained.Professor James noted that while this is very unfair, it is our responsibility to learn the history of harmful tax competition, in an effort to prepare ourselves in the event this re-occurs.“I say that is not fair and we as a people have to learn the history of this harmful tax competition controversy and prepare ourselves so that the next time they try it we can stand up to them and say no way hosay, c’est pas con sa [In English, “it’s not like that”], we want our share of the economic pie that we have around the globe.”The International Taxation In The Caribbean Context Course which began yesterday afternoon will continue through this week.Dominica Vibes Newslast_img

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