BahamaPundit, my points are valid and not a pile of crock. Please read the comments from the Bahamas Chamber of Commerce published in the Nassau Guardian this morning. Small mutual fund administrators, specialty healthcare, import/export clearing companies, equipment rental can now all be "automatically" work permitted after 14 days of not hearing from the Immigration Department.
Bahamapundit, you also don't seem to care that Bahamians are hamstrung from unencumbered access to global capital markets in order to even compete with the foreigners who are not impacted by exchange controls. But then again, like a said....the bill is made by a self serving government. The PLP is no different.
The FNM should hold their heads in shame for passing the Commercial Enterprises Bill.
This bill will greatly benefit foreigners with only a "trickle down" impact for Bahamians. It may benefits the blue collar trades but professionals will be negatively impacted.
It will allow in much more well capitalized foreign competition for Bahamian small businesses. Already I am seeing foreigners buying up middle class homes and putting them on rent with Air B&B, I thought the guest house industry was reserved for Bahamians. They are even renting cars connected with their real estate investments. The foreign yachts are for all intensive purposes fishing vessels competing with local fishermen. There are few properties left for Bahamians to rent and the banks are not lending for purchases. Foreigners are also in most blue collar trades where ever you look in the Bahamas.
Due to our poor education system Bahamian are not even educated enough to be competitive. The government is clueless and being lead by foreign interests. What ever happened to the economic impowerment zones for Grant's Town that was promised by the FNM. What ever happened to free University of the Bahamas education? What ever happened to universal healthcare?
Through antiquated exchange control laws Bahamian businesses and investors are essentially shut out of the international capital markets (be it for loans or investing in the greatest global bull market which is currently ongoing).
Don't be fooled. There is lots of money and capital in the Bahamas, if only because of our proximity to the US. Its just that little of it is going to the middle class. The current beneficiaries are the Bahamian Government (through taxes and work permits), the Chinese through capital investments (Baha Mar, Container Port, Freeport Hotels), the Webshops (praying on false promises to those most at risk), the Bay Street boys, independent Churches (no accountability), liquor houses and the oil import monopolist.
No use changing back to the PLP. They are even worse than the FNM as they sold out completely to the Chinese and the webshops (against the will of the people). The government is basically self serving and doesn't care for its people.
Like Turnquest, McCartney's comments on corporate income tax are unhelpful because they are vague and lack specific objectives to grow the economy. Investors will be alarmed and act accordingly by shifting their assets to a more regulatorily and fiscally certain jurisdiction. The PLP government had a similar approach with the implementation of VAT. Higher taxation (income tax) under the FNM will lead to further economic decline. Go to Freeport and you will see most businesses have already been shut down. Webshops and liquor outlets abound.
The FNM should look carefully at the tax reforms being undertaken in Argentina by the Macri administration for a road map. Argentina's objectives are clearly defined: "The aims of the reforms include reducing tax distortions, making the tax system more equitable, promoting investment and labour formality and reducing overall tax pressure. Achieving this last goal will be particularly tricky, considering that the government is at the same time trying to narrow the fiscal deficit to put the public finances on a stronger footing. By placing investment promotion at the centre of its tax proposals, the government hopes that a resultant increase in economic activity will produce a reform that is closer to revenue-neutral (Economist Intelligence Unit - Nov 6, 2017).
Argentina clearly wants to align its tax policy to be investment stimulative and not just to raise revenue (which was the only goal of for VAT in the Bahamas) and in the process it destroyed small businesses and caused inflation to spiral. "The centrepiece of the reform (in Argentina) is a series of tax cuts on companies intending to raise investment. Most importantly, the corporate income tax rate is to be reduced from 35% to 25%, as long as profits are reinvested. If they are not, a 10% tax on distribution of dividends will be applied. The government is also seeking to gradually reduce distortionary taxes, including a tax on bank debts and credits, along with provincial taxes such as the turnover tax and stamp duty."
One can only hope but in the mean prepare your capital exit plans. Like VAT, income tax and a floating Bahamian dollar (at 80 cents) maybe here sooner than you think.
Bahamians and residence with international businesses should also be concerned that the government will wish to tax world wide income. This is the only way to satisfy the OECD concern that international or multi jurisdictional firms are escaping taxes by being domiciled in the Bahamas. Billions of income and capital gains have been sheltered using IBCs.
This will require international IBCs to be audited, just like local companies, and their financial statements filed with Inland Revenue.
The major problem with the government implementing an income or corporate tax is a general lack of accountability (neither the FNM or the PLP are credible regimes). There has been no improvement in the well being of Bahamians since the implementation of $1 billion of VAT taxes. Indeed we so no improvement in government processes, controls, procedures or for that matter any bright ideas. All we here is the re-litigation of old matters such as gambling, citizenship and corruptions with no improvements in any of these areas.
Based on how the Minister has phrased the corporate tax communication I would assume that by the end of FNM's current term in office some form of corporate/income tax will have been implemented.
The communication is just the first shock to soften up the general public. Similar to how the PLP implimented VAT and legalized gambling.
Bahamian citizens, permanent residents and foreigners are therefore on notice to get their affairs in order.
Some considerations and questions left wide open by the Minister during his most unhelpful communication.
1. Are we talking a corporate tax or an income tax. There is a big difference as a corporate tax does not impact individuals.
2. Are we talking a corporate tax on Bahamian companies resident for exchange control purposes or does it include non resident companies which are used mostly by foreigners and residence e.g. IBCs.
3. Are we talking a corporate tax on domestic earnings (local businesses) or will it include international businesses (or world wide income).
4. Are we talking a taxation based on underlying beneficial ownership (citizenship tax) or on the "place of doing business" or residency? How do you determine residency for tax purposes. Eg. In the US if you are a non resident and you are in the US for less than 120 days then you are not deemed to be resident for tax purposes. The US taxes on world wide income.
5. Will the corporate tax include passive financial income such as capital gains, interest income and dividends or will it be earned income from a trade. If it is from a trade does it only touch upon a trade performed in the Bahamas?
I can go on and on with many other queries. But to be safe we should assume that the government (as it did with VAT) will cast the widest net and then close it when the foreigners/non resident companies start to migrate to Cayman or the BVI (those that have not already done so) and the Bahamians start to scream.
We should also assume that the Business license fee will remain. So Bahamian business will be taxed on the top line (business license), on the bottom line (income tax) and on every transaction in between (VAT).
The Tribunes article probably has already been circulated to the Head Offices of many international companies that have IBCs subsidiaries in the Bahamas and I would assume they would start making contingent plans immediately.
While Bahamian will "consult" with the government and get into all sorts of arguments the foreigners will start to move now.
Did you notice people working on the roads on holidays and weekends but ya can't see dem workin during da week. Das cause during da week dey do'in dey own work.
Now dat da government dem pay'in dey ga just work satday, sunday and holiday.
Government dem borrow $750 million....come and get it....
Maybe the reason people are sending in old bills is because the government appears to be paying all of them. I guess the PLP stop paying bills so the people stopped sending bills.
But now that KP is in charge and paying bills then everyone is digging up all kinda old bills and KP ga just keep pay'in dem.
Get the word out KP pay'in old bills...hurry send dem in.
Where dey tink dey go'in drillin fa oil wit $1 million dollars? WTF? Dis company has been loosing money since it was formed (over $1 million a year), never made a dime in its life.
When da oil spill and mess up da Exuma sea park like BEC mess up Clifton who ga pay?
Poor black ignorant Bahamians, das who. Wake Up Bahamas!
Share price has collapsed from over $40 to under $1. Looks like a penny stock to me. No worries, just what the Bahamas needs. Another broke a#s foreigner investing in the Bahamas. Let roll out the red carpet to them.
observer2 says...
BahamaPundit, my points are valid and not a pile of crock. Please read the comments from the Bahamas Chamber of Commerce published in the Nassau Guardian this morning. Small mutual fund administrators, specialty healthcare, import/export clearing companies, equipment rental can now all be "automatically" work permitted after 14 days of not hearing from the Immigration Department.
Bahamapundit, you also don't seem to care that Bahamians are hamstrung from unencumbered access to global capital markets in order to even compete with the foreigners who are not impacted by exchange controls. But then again, like a said....the bill is made by a self serving government. The PLP is no different.
https://thenassauguardian.com/2017/11/2…
On Minnis: Financial sector is 'dying'
Posted 27 November 2017, 1:05 p.m. Suggest removal
observer2 says...
The FNM should hold their heads in shame for passing the Commercial Enterprises Bill.
This bill will greatly benefit foreigners with only a "trickle down" impact for Bahamians. It may benefits the blue collar trades but professionals will be negatively impacted.
It will allow in much more well capitalized foreign competition for Bahamian small businesses. Already I am seeing foreigners buying up middle class homes and putting them on rent with Air B&B, I thought the guest house industry was reserved for Bahamians. They are even renting cars connected with their real estate investments. The foreign yachts are for all intensive purposes fishing vessels competing with local fishermen. There are few properties left for Bahamians to rent and the banks are not lending for purchases. Foreigners are also in most blue collar trades where ever you look in the Bahamas.
Due to our poor education system Bahamian are not even educated enough to be competitive. The government is clueless and being lead by foreign interests. What ever happened to the economic impowerment zones for Grant's Town that was promised by the FNM. What ever happened to free University of the Bahamas education? What ever happened to universal healthcare?
Through antiquated exchange control laws Bahamian businesses and investors are essentially shut out of the international capital markets (be it for loans or investing in the greatest global bull market which is currently ongoing).
Don't be fooled. There is lots of money and capital in the Bahamas, if only because of our proximity to the US. Its just that little of it is going to the middle class. The current beneficiaries are the Bahamian Government (through taxes and work permits), the Chinese through capital investments (Baha Mar, Container Port, Freeport Hotels), the Webshops (praying on false promises to those most at risk), the Bay Street boys, independent Churches (no accountability), liquor houses and the oil import monopolist.
No use changing back to the PLP. They are even worse than the FNM as they sold out completely to the Chinese and the webshops (against the will of the people). The government is basically self serving and doesn't care for its people.
On Minnis: Financial sector is 'dying'
Posted 27 November 2017, 11:27 a.m. Suggest removal
observer2 says...
Like Turnquest, McCartney's comments on corporate income tax are unhelpful because they are vague and lack specific objectives to grow the economy. Investors will be alarmed and act accordingly by shifting their assets to a more regulatorily and fiscally certain jurisdiction. The PLP government had a similar approach with the implementation of VAT. Higher taxation (income tax) under the FNM will lead to further economic decline. Go to Freeport and you will see most businesses have already been shut down. Webshops and liquor outlets abound.
The FNM should look carefully at the tax reforms being undertaken in Argentina by the Macri administration for a road map. Argentina's objectives are clearly defined: "The aims of the reforms include reducing tax distortions, making the tax system more equitable, promoting investment and labour formality and reducing overall tax pressure. Achieving this last goal will be particularly tricky, considering that the government is at the same time trying to narrow the fiscal deficit to put the public finances on a stronger footing. By placing investment promotion at the centre of its tax proposals, the government hopes that a resultant increase in economic activity will produce a reform that is closer to revenue-neutral (Economist Intelligence Unit - Nov 6, 2017).
Argentina clearly wants to align its tax policy to be investment stimulative and not just to raise revenue (which was the only goal of for VAT in the Bahamas) and in the process it destroyed small businesses and caused inflation to spiral. "The centrepiece of the reform (in Argentina) is a series of tax cuts on companies intending to raise investment. Most importantly, the corporate income tax rate is to be reduced from 35% to 25%, as long as profits are reinvested. If they are not, a 10% tax on distribution of dividends will be applied. The government is also seeking to gradually reduce distortionary taxes, including a tax on bank debts and credits, along with provincial taxes such as the turnover tax and stamp duty."
One can only hope but in the mean prepare your capital exit plans. Like VAT, income tax and a floating Bahamian dollar (at 80 cents) maybe here sooner than you think.
On Bahamas 'behooved' to eye corporate tax
Posted 7 November 2017, 8:58 a.m. Suggest removal
observer2 says...
Bahamians and residence with international businesses should also be concerned that the government will wish to tax world wide income. This is the only way to satisfy the OECD concern that international or multi jurisdictional firms are escaping taxes by being domiciled in the Bahamas. Billions of income and capital gains have been sheltered using IBCs.
This will require international IBCs to be audited, just like local companies, and their financial statements filed with Inland Revenue.
The major problem with the government implementing an income or corporate tax is a general lack of accountability (neither the FNM or the PLP are credible regimes). There has been no improvement in the well being of Bahamians since the implementation of $1 billion of VAT taxes. Indeed we so no improvement in government processes, controls, procedures or for that matter any bright ideas. All we here is the re-litigation of old matters such as gambling, citizenship and corruptions with no improvements in any of these areas.
Time to get out before its too too late.
On ‘Low level’ corporation tax studied
Posted 4 November 2017, 1:55 p.m. Suggest removal
observer2 says...
Based on how the Minister has phrased the corporate tax communication I would assume that by the end of FNM's current term in office some form of corporate/income tax will have been implemented.
The communication is just the first shock to soften up the general public. Similar to how the PLP implimented VAT and legalized gambling.
Bahamian citizens, permanent residents and foreigners are therefore on notice to get their affairs in order.
Some considerations and questions left wide open by the Minister during his most unhelpful communication.
1. Are we talking a corporate tax or an income tax. There is a big difference as a corporate tax does not impact individuals.
2. Are we talking a corporate tax on Bahamian companies resident for exchange control purposes or does it include non resident companies which are used mostly by foreigners and residence e.g. IBCs.
3. Are we talking a corporate tax on domestic earnings (local businesses) or will it include international businesses (or world wide income).
4. Are we talking a taxation based on underlying beneficial ownership (citizenship tax) or on the "place of doing business" or residency? How do you determine residency for tax purposes. Eg. In the US if you are a non resident and you are in the US for less than 120 days then you are not deemed to be resident for tax purposes. The US taxes on world wide income.
5. Will the corporate tax include passive financial income such as capital gains, interest income and dividends or will it be earned income from a trade. If it is from a trade does it only touch upon a trade performed in the Bahamas?
I can go on and on with many other queries. But to be safe we should assume that the government (as it did with VAT) will cast the widest net and then close it when the foreigners/non resident companies start to migrate to Cayman or the BVI (those that have not already done so) and the Bahamians start to scream.
We should also assume that the Business license fee will remain. So Bahamian business will be taxed on the top line (business license), on the bottom line (income tax) and on every transaction in between (VAT).
The Tribunes article probably has already been circulated to the Head Offices of many international companies that have IBCs subsidiaries in the Bahamas and I would assume they would start making contingent plans immediately.
While Bahamian will "consult" with the government and get into all sorts of arguments the foreigners will start to move now.
On ‘Low level’ corporation tax studied
Posted 4 November 2017, 1:54 p.m. Suggest removal
observer2 says...
Did you notice people working on the roads on holidays and weekends but ya can't see dem workin during da week. Das cause during da week dey do'in dey own work.
Now dat da government dem pay'in dey ga just work satday, sunday and holiday.
Government dem borrow $750 million....come and get it....
On PLP line up to attack Turnquest
Posted 10 October 2017, 12:09 p.m. Suggest removal
observer2 says...
Maybe the reason people are sending in old bills is because the government appears to be paying all of them. I guess the PLP stop paying bills so the people stopped sending bills.
But now that KP is in charge and paying bills then everyone is digging up all kinda old bills and KP ga just keep pay'in dem.
Get the word out KP pay'in old bills...hurry send dem in.
On PLP line up to attack Turnquest
Posted 10 October 2017, 12:07 p.m. Suggest removal
observer2 says...
Where dey tink dey go'in drillin fa oil wit $1 million dollars? WTF? Dis company has been loosing money since it was formed (over $1 million a year), never made a dime in its life.
When da oil spill and mess up da Exuma sea park like BEC mess up Clifton who ga pay?
Poor black ignorant Bahamians, das who. Wake Up Bahamas!
https://www.bpcplc.com/investors/financ…
On Oil explorer's boost for 'faster' farm-in partner conclusion
Posted 3 October 2017, 2:21 p.m. Suggest removal
observer2 says...
Share price has collapsed from over $40 to under $1. Looks like a penny stock to me. No worries, just what the Bahamas needs. Another broke a#s foreigner investing in the Bahamas. Let roll out the red carpet to them.
http://tribune242.com/users/photos/2017…
On Oil explorer's boost for 'faster' farm-in partner conclusion
Posted 3 October 2017, 2:15 p.m. Suggest removal
observer2 says...
no. you are not looking for bahamians to run dat.
how come you never see all these nice jobs in the newspapers being advertized?
how come all of a sudden a complete board of directors is appointed in a non transparent manner?
why are all the contracts done in secret?
On BPL ‘will have to be privatised’
Posted 22 September 2017, 3:22 p.m. Suggest removal