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Fri 2nd Mar 2018

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Billion dollar grant aid given to SVG has benefitted Taiwan and super-rich white migrants

Since 2001, just over a billion dollars in grant aid has been given to SVG by the international community. This has benefitted Taiwan and super-rich white migrants in Mustique and Canouan, as it slightly reduces the moral pressure on them to pay tax.

The billion dollars in grant aid has acted as a sticking plaster, just barely holding the economy and society from collapse.

Table showing total grants to SVG – 2001 to 2018

20180302thenewstableSource: SVG Budgets 2001 - 2018
Researched by Ivan O’Neal BSc (hons) MSc, MBA)

The table shows that the total in grants received by SVG from 2001 to 2018 was $1.037 billion.

However, given that the tax exemptions given to Taiwan and the super-rich white migrants of Mustique and Canouan amount to about EC$3 billion a year, the total in tax exemptions given to Taiwan and the super-rich white migrants of Mustique and Canouan from 2001 to 2018 was about EC$ 54 billion.

Our people are not getting the full benefit of the grants given to SVG, as the $1.037 billion in grants is being used to fill the massive financial void created by Taiwan and the super-rich white migrants of Mustique and Canouan not paying tax.

Grants given to SVG are being lost in an abyss of corporate tax evasion. This is highly immoral and totally unacceptable. It perpetuates the large-scale poverty and destitution seen all around the country.

Corporate tax evasion by foreigners is killing SVG and reducing the life-opportunities of our people. The Tax Justice Network (TJN) says the overriding imperative is to end the secrecy of financial operations of the corporations and proposes three essential planks of policy.

The first plank is to mandate the automatic exchange of tax information between all national jurisdictions. Without this reciprocal information exchange, national authorities simply cannot know whether corporations are paying the correct amount of tax.

The second plank is to mandate complete transparency of beneficial ownership of all offshore companies, trusts and foundations. Tax-exempt charitable trusts and corporations use structures for tax evasion on colossal levels.

The third plank from the TJN’s programme is to require country-by-country reporting of revenues by multinational corporations. This kind of knowledge is a precondition for an equitable international division of corporate profit taxes by governments.

The United Nations is urging the Caribbean and other states to take action against corporate tax evasion and also urged rating agencies to downgrade businesses responsible for unethical practices, such as tax evasion and tax abuse.

According to Warrant Officer Ivan O’Neal BSc (hons) MSc, MBA, we must break this stupid tax regime which grants blanket tax and customs duty exemptions of about EC$3 billion annually to the Dirty Dog Taiwan and the super-rich white migrants of Mustique and Canouan.

The people of SVG should get the full benefit of the grants given to SVG, and grants should not be used to fill the massive financial void created by Taiwan and the super-rich white migrants of Mustique and Canouan not paying tax.

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