Opposition Leader: No objection to FATCA agreement between US and T&T

Monday, September 12, 2016 - 10:15

Opposition Leader Kamla Persad-Bissessar is making it clear that she had no problem with the agreement signed between the United States and Trinidad and Tobago.

In a statement issued by the Office of the Leader of the Opposition, Persad-Bissessar said, however, that the Foreign Account Tax Compliance Act (FACTA) Bill contains some draconian measures the Opposition does not support.

The following is the statement from the Office of the Leader of the Opposition.

"Today, the Leader of the Opposition sought to set the record straight on comments made by the Minister of Finance who presented the Rowley Administration’s response to the Opposition’s position on the FATCA Bill.

The Opposition has no objection to the agreement signed between Trinidad and Tobago and the United States.

Mrs. Persad-Bissessar underscored the fact that the agreement, on the one hand, and the Bill presented to the House, on the other hand, are two separate and distinct matters:

“In late August 2016, the Rowley Administration formally signed the FATCA agreement, sometimes called the IGA, which was previously approved and initialled by my government in November 2014. The evidence for this can be found on the website of the US Treasury Department which lists Trinidad and Tobago as having signed off on the agreement on November 30 2014.

As a result, there is absolutely no disagreement between the Government and the Opposition with respect to the IGA.

It is disingenuous for the Minister of Finance therefore to continue to speak of the IGA, when the issues raised by the Opposition have focused on the measures proposed by the Rowley Administration in the implementing legislation.”

She reiterated her concerns with the Bill:

“Our concerns are with respect to the draconian provisions in the Bill which are in no way necessary to give effect to the agreement. Indeed, none of these draconian measures are to be found in legislation in other Caricom countries who have passed domestic legislation to give effect to FATCA agreements with the US.

We are further concerned that the Bill disproportionately violates constitutional guarantees and that it was brought to Parliament so late that the Opposition and stakeholders are effectively being shut out of the legislative process.

The Bill seeks to eliminate the privacy provisions found in a number of additional existing laws which have not yet been identified and gives the Minister of Finance the sole authority to appoint persons other than Board of Inland Revenue to access individuals’ private financial information and interface the IRS and with local and international financial institutions.

It is entirely unacceptable for a politician to be given such wide ranging, intrusive power to access individuals’ personal financial information.”

The Leader of the Opposition stated that appropriate safeguards must be included to protect citizens’ privacy rights:

“There is no recourse in the Bill for an affected individual to properly address the abuse of power or the sharing of sensitive information even if it goes beyond the domain of agreed limits. There is a penalty for violation of limits, yes, but what is the process for triggering this, and how will the individual know?

The sharing of sensitive information across borders is done automatically and can be done without notification or knowledge of the person being scrutinized, it is important to have safeguards to prevent abuse by politicians.”

Even worse, Mrs. Persad-Bissessar explained that the Minister is given undue powers to make changes without proper Parliamentary oversight:

“Moreover, no regulations have been provided to govern the operationalization of the Bill. The Minister, in the Bill presented, can make changes to the agreement by order without coming to Parliament.

Thus, there is no Parliamentary oversight of future legislative and other action to be taken by the Minister of Finance and others.

Further it is difficult to tell from the existing Bill how US accounts of TT nationals are affected, how TT nationals with US residency are covered and what are the options for dual citizens carrying TT and US citizenship.”

The Leader of the Opposition looks forward to consideration of the Bill by a Joint Select Committee and key stakeholders.

Further, it is not true that there is not enough time. A Joint Select Committee can be fully established by Wednesday, it can meet on Thursday and Friday. And both houses can meet on any two of Monday 19, Tuesday 20 or Wednesday 21-- way in advance of the September 30 deadline.”

It is the Opposition’s view that the Government cannot bring such a complex Bill which requires the examination of complicated issues so late in the day and then try in an authoritarian fashion to browbeat the Opposition into submission.

The government cannot be wrong and strong. It must tell the truth and be reasonable.

The Opposition is meeting with Government today. As previously indicated, the Opposition wants a JSC to thoroughly review the Bill and is prepared to work with the Government to facilitate meeting of all national and international obligations within the understood timeframe."

FOR MORE TOP STORIES: http://www.cnc3.co.tt/latest-news