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.
In its special report, PWYP explained that the Caricom treaty allows the “free movement” of money, goods and services.
International oil companies in the islands make billions of dollars in profits and are able to transfer their money from the island to island before making its way to the oil company’s international headquarters.
The anti-corruption agency emphasized that it seems obvious that oil companies create subsidiaries with the sole intent of securing treaty benefits that would otherwise be unavailable to them