The Nicaraguan government's proposal to create a free trade zone to provide tax incentives to attract financial sector companies and to exported services from there has raised doubts in some quarters, with accusations being made that the bill evokes the concept of a tax haven. However, ProNicaragua defends the bill, asserting that the goal is to attract investment of greater value, both in finance and other industries.

Javier Chamorro, executive director of ProNicaragua, told Confidencial.com.ni that "... 'We already have call centers that export professional services. There are some that are basic ... but others provide higher value professional services ... In financial free zones the concept is the same, because they will provide financial services to people abroad. Having a company that provides financial services and professional services abroad, is the same concept which we are using for any other exporter of professional services. Instead of having our civil engineers designing for companies in the US. They it will be our masters, financial experts, accountants, nd business managers, who will provide financial advisory services'. "

He added that "... 'A tax haven is by definition a place where you do not pay taxes (or pay less), not necessarily where crimes are committed. Call centers could be called tax havens, because they do not pay taxes. Do they become places that are at risk of money laundering, just because they do not pay taxes? No '. "

Source: confidencial.com.ni

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