An international report is claiming that Trinidad and Tobago loses an estimated $200 million dollars a year in tax revenues from international oil companies.
The report which was conducted by the anti-corruption agency 'Publish What You Pay', claims that giants like Exxon Mobil, Chevron and Tullow Oil establish subsidiaries in Caribbean territories to exploit loopholes in the tax systems.
The agency claims the main purpose of these subsidiaries being planted in Caribbean countries is to secure “treaty benefits” that would otherwise be unavailable to them.
State-owned oil company, Petrotrin has seen a reduction in revenue by $3.2 billion over the last fiscal year. However, Petrotrin says it has managed to reduce the company's net income losses by $286 million.
The company issued the following statement today.
"Petrotrin is currently undergoing the annual audit of its financial results for the fiscal year ended 2016 September 30. Preliminary unaudited results indicate a drop in revenue of TT$3.2 billion or 16% compared to the previous year.
Finance Minister Colm Imbert has said that the revenue this country earned from petroleum in 2016, amounted to just $1.7 billion compared to $19.3 billion two years ago in 2014.
He said when other shortfalls are taken into account, this government had $20 billion less to run the economy, than when the previous government was in office.
He made the revelation at a public meeting in Mt Dor last evening, saying he had only just got the figures.