CAYMAN ISLANDS –Â For decades, well to do Jamaicans have been hiding their assets in land, apartments, bank accounts, trusts and company shares in the Cayman Islands and other tax havens. They know who they are. With a little effort, so will the leaders of Jamaican revenue collection, much in need of more taxes given the government largesse with private company loans.
Some have used family members in the Cayman Islands to disguise their holdings. They do this to avoid paying their fair share of taxes to the government of Jamaica.
Tax Avoidance
There are many assets in Jamaica such as land, bank accounts and company shares owned by companies or other entities from the Cayman Islands or other tax havens. Offshore company providers such as Saint Lucia are also involved. Some of those entities are defunct and their assets may belong to the governments of Jamaica or Cayman.
The relevant ministers and portfolio leaders can easily get a list of foreign-owned assets in the country. These assets are controlled or owned, directly or indirectly, by Jamaican nationals. An assessment can then be made of any taxes and penalties that are due.
Any required legislation or regulations can be expedited for what has become a national emergency.
Money Laundering
This wide net would also scoop up individuals who have committed money laundering to evade taxes. This applies unless a time-sensitive amnesty for full payment and penalties within thirty days is declared.
The American government and others require an annual declaration by their citizens regarding ownership of any foreign assets, directly or indirectly. They also tax their citizens wherever they reside.
Jamaica can follow that protocol to help with the gaping post Melissa hole in their income. This is especially so when one of our biggest earners, remittances, has fallen and now being taxed by the US government.
Policemen, nurses, teachers, government workers, and private company workers have their tax obligation taken before they are paid. They have no opportunity to evade taxes. This is not the case with many of the bosses in Jamaica. It cannot be right that the hardest working or those on fixed incomes are compelled to pay taxes. They have to carry a burden avoided by many wealthy Jamaicans, especially from Upper Saint Andrew.
Timing is everything. The new leader of the Cayman Islands has declared an intention to stamp out financial misconduct. He could start, if requested, to provide a list of Jamaican ownership of bank accounts, shares, or any other instruments to create secrecy and avoid taxes.
Taxes and Penalties
He could then move on to Caymanians who have committed money laundering to assist Jamaicans and others to evade taxes. This would involve using his recently increased government financial sector guardians and the so-called soldiers on the front line of compliance. There have been no prosecutions in this regard and no one is holding their breath.
The Cayman Islands and others have recently been forced to open a beneficial ownership register. This would provide a useful clue to tax avoidance by Jamaicans if the government or media is interested.
A good start is if the sixty three Jamaican parliamentarians declare any foreign assets or local assets owned by foreign entities under their control.
There are no more sacred cows, not now, not ever.
There cannot be one rule for them and one rule for us.
