No tax haven here, says Jamaica Finance Minister

Jamaica's Minister of Finance and the Public Service, Audley Shaw

KINGSTON, Jamaica, July 2, 2009 – Jamaica’s Finance Minister Audley Shaw is seeking to give assurances that Jamaica will not earn the reputation as a tax haven when the proposed International Financial Centre (IFC) is set up in the country’s capital.

"Contrary to the concept of a tax haven, the IFC has been conceptualised to operate in a profoundly different manner, owing to its fundamentally different nature and character. That is, the centre will serve as an outlet facilitating offshore offices and services, in addition to the outsourcing of different aspects of financial services," he said.

The Finance Minister pointed out that with many Caribbean neighbours taking advantage of the offshore sector, it is essential that Jamaica focuses on specific market niches and harness its competitive advantage.

"These include the large cadre of professionals in the fields of accounting, law, banking and finance; the high-ranking quality of transportation infrastructure especially our airports, our seaports, and our excellent telecommunication capabilities; a stable democracy; proximity to the world's largest market, (and) availability of training facilities for professionals in the financial industry," Shaw said.

The government has earmarked J$100 million (US$1.1 million) in the budget to establish the IFC.

Last month, the Golding Cabinet approved establishment of a statutory company to oversee the development of the IFC. The next step is the drafting of appropriate legislation, including amendments to the Urban Renewal Act, and the refinement of the list of products and services that are to be offered.