Samoa Needs Revenue From Offshore Trusts
July 5, 2016 Taxation in Samoa
APIA – The Prime Minister of Samoa has defended his nation’s status as a tax haven, saying that it needs the revenues to fund social programs.
During a recent state visit to Brussels the Prime Minister of Samoa Tuilaepa Aiono Sailele Malielegaoi claimed that his country is heavily dependent on the incomes gathered from registration and maintenance of “offshore” companies and trusts.
Samoa was recently highlighted as a significant tax haven in the “Panama Papers”, with revelations that the offshore provider Mossack Fonseca has helped register at least 5 000 trusts and companies on the small island nation.
The Prime Minister said that the revenues and royalties collected from the companies and trusts are vital to the nation, and the gathered funds are used to pay for anti-drug programs and youth sports programs.
He added that Samoa is heavily reliant on revenues from fishing and tourism, but environmental changes are making these revenue streams increasingly vulnerable, emphasizing the need for alternative streams for funds.
Photo By: Miran Rijavec