Attorney General Wilkin Emphasizes Financial Security and Economic Mobility Amidst UN’s Development of International Tax Cooperation Framework

The Federation of Saint Kitts and Nevis has taken a prominent leadership role in shaping the future of international tax cooperation. Attorney General and Minister of Justice and Legal Affairs, Senator the Honourable Garth Wilkin, was elected as Vice President of the Bureau of the Intergovernmental Negotiating Committee (INC-Tax), tasked with drafting the UN Framework Convention on International Tax Cooperation. This pivotal role positions Saint Kitts and Nevis at the forefront of discussions crucial to financial security, economic mobility, and sustainable development, ensuring the nation’s interests are central to the evolving global tax landscape. The INC-Tax is focusing on two key areas alongside the Framework Convention: taxation of cross-border services in the increasingly digitalized global economy and the prevention and resolution of international tax disputes.

Senator Wilkin, delivering the CARICOM statement, articulated the challenges faced by Caribbean nations under the current international tax system. He highlighted the significant barriers encountered in pursuing sustainable development, particularly regarding the taxation of cross-border services and the resolution of tax disputes. Wilkin emphasized the reliance of many CARICOM states on gross-basis withholding taxes as a practical method for taxing non-resident service providers due to limited administrative capacities. Restrictive bilateral tax treaties often hinder this approach, creating an uneven playing field. The complex transfer pricing rules, designed for the residence-based taxation models prevalent in developed economies, place an undue burden on the limited resources of CARICOM nations.

Senator Wilkin advocated for a Framework Convention grounded in the principle of universality, encompassing the diverse needs and capacities of all countries, echoing the Addis Ababa Action Agenda on Financing for Development. He stressed the importance of the convention providing practical solutions to revenue mobilization challenges while respecting the sovereign right of nations to design tax systems tailored to their unique circumstances. Ultimately, the Framework Convention should facilitate, not obstruct, the pursuit of the Sustainable Development Goals for CARICOM member states. This proactive approach ensures that the Federation of Saint Kitts and Nevis is actively involved in shaping a fairer and more equitable international tax system, rather than being subjected to rules imposed by larger, more developed nations.

Prime Minister Hon. Dr. Terrance Drew endorsed the Federation’s leadership in this crucial economic forum. He recognized the current global economic climate, characterized by uncertainty and unpredictability, and emphasized the importance of Saint Kitts and Nevis participating actively in international discussions to protect the interests of its citizens. Direct involvement in these global dialogues allows the nation to shape rules and regulations related to taxation, a deeply personal matter, ensuring that Kittitians and Nevisians are shielded from the volatility of the international economic landscape. This proactive engagement reinforces the government’s commitment to safeguarding the economic well-being of its citizens.

The Federation’s delegation to the INC-Tax comprised key figures, demonstrating the government’s commitment to this critical issue. Ambassador Mutryce Williams, Permanent Representative of St. Kitts and Nevis to the UN, and Mr. Eustace T. Wallace, Minister Counsellor and 2nd Committee (Economic and Financial Affairs) Lead at the Permanent Mission, accompanied Attorney General Wilkin. Mrs. Liska Hutchinson-Rhyner, Crown Counsel II, further represented the Federation during the second week of the First Working Session. This high-level representation underscores the importance placed on the INC-Tax negotiations and ensures continued engagement in shaping a more equitable international tax framework.

In essence, the Federation of Saint Kitts and Nevis is proactively engaging in shaping the future of international tax cooperation. By actively participating in the INC-Tax and advocating for a more equitable system that recognizes the unique challenges faced by small island developing states, the nation seeks to safeguard its economic interests and ensure a sustainable future for its citizens. This strategic involvement in global forums positions Saint Kitts and Nevis as a key player in shaping a fairer and more just international economic order. The nation’s leadership in this arena reflects its commitment to not only protecting its own interests but also to contributing to a more balanced global financial system that benefits all countries.