Pass FATCA Bill

This matter has been lingering for months, absorbing much Parliament, ministerial and diplomatic time. In the meanwhile, matters such as our crime situation and legislation to end child marriage must wait as both sides wrangle.

The parties must pass the Bill by February to ensure compliance with the United States’ FATCA (Foreign Account Tax Compliance Act) law as a matter of urgency.

The current extension granted by US authorities is up in September and it is unclear how ongoing transitional issues in that country will affect the process, if at all.Friday’s walkout and Monday’s blanking by the Opposition of debate of the legislation was the third such boycott.

How useful are boycotts as a political tool or as an expression of protest when done so often?The Opposition accuses the Government of misrepresenting its position.

The Government implies the Opposition has something to hide and does not want the Bill passed.

Both are to blame for the current impasse. The Opposition is insisting on a joint select committee (JSC) of Parliament and the Government is insisting none is necessary.

There must be a reasonable compromise.

There can be no harm done by a JSC studying the Bill properly. That’s the course that should have been adopted months ago. We must remark, however, that the people’s business must be conducted in Parliament, not at news conferences. Boycotting Parliament is ridiculous. More effective would be attending Parliament and showing us the dangers of the legislation there. Let the Hansard record the Opposition’s concerns.

At this stage, we urge both sides to put country first. Judging from the statements that have been made by stakeholders, we have too much to lose. According to the TT Chamber, inability to meet the deadline can result in serious consequences including the disruption/termination of banking services such as: wire transactions, currency transfer transactions and remittance services. Financial service providers and non-compliant individuals may be affected; transactions could see the deduction and withholding of 30 percent tax on US source income.

The cost of doing business could escalate due to a rise in the cost of financial services. And non-compliance could potentially make TT a disincentive to foreign investors.

The American Chamber of Commerce warned back in September that TT “is on the brink of being demoted to the periphery of the global financial system, largely due to inaction on the part of politicians on both sides of the political divide.” The US ambassador strongly recommended that TT pass legislation no later than February 2017, in order to carry out the commitment undertaken when a bilateral agreement was signed by both countries, and in line with the implementation plan put forward by the Government of TT.True, these warnings sound very familiar.

They were made a few months ago, and then it emerged that there were facilities for extension.

Finance Minister Colm Imbert, however, now doubts further extensions will be granted. The time for playing politics is over. When Parliament resumes in January priority must be given to passing the Bill. On another point, last Friday’s proceedings were a reminder that while many improvements have been made in parliamentary rules over the years, there is still a long way to go. Unfortunately, the most pressing matter facing the nation, crime, was not allowed. A motion to debate that matter by Opposition Leader Kamla Persad-Bissessar was rejected by Speaker Bridgid Annisette- George. That was the Speaker’s prerogative. The Parliament can only be guided by its current rules.

How can those rules be improved to make the chamber more relevant to ordinary people? Perhaps the time has come to discuss this.