A leading international tax expert has advised the low tax jurisdictions affected by the US’ efforts to block the tax benefits of corporate inversions to issue a legal challenge to the United States for interfering with their financial markets.
Speaking to the Barbados Business Authority, international taxation advisor to some 14 governments, Bruce Zagaris pinpointed new legislation designed to stop recently reincorporated US firms from securing lucrative federal contracts as a cause for grave concern.
He went on to suggest that the governments of the jurisdictions named in Democrat Rosa DeLauro’s amendment to the Homeland Security Act 2002 – namely Bermuda, Barbados, the Bahamas, Cayman Islands, the British Virgin Islands, Monaco, the Isle of Man, and the Seychelles – should present a united front on this issue:
‘Eventually they may have to challenge one or more of these sanctions in an international forum which would either be the International Court of Justice, the World Trade Organisation or the International Monetary Fund for unfairly blocking access to financial markets,’ he told the BBA.
