Comment history

observer2 says...

You can't have growth with high levels of corruption.

observer2 says...

Dear Mr. Moody's

My government doesn't listen to me but they may listen to you because you are foreign. So please tell my government that before the talk about growing the economy they must stop the leaks, frauds, crony capitalism, crime and a dumb down work force.

observer2 says...

This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.

Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.

People are now desperate and most votes are now for on sale at a very low price. Couple with the Opposition/FNM split in three (Doc, Big Sexy and Mean Brad) look like dey ga win again.

observer2 says...

This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.

Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.

People are now desperate and most votes are now for on sale at a very low price.

observer2 says...

From the Governments perspective, borrow as much as possible and tax the rich makes perfect sense. The countries debts don't need to be paid of decades when they all will be retired. Taxing and abusing the rich includes increases in RPT out west, increase in club dues, increase in POA charges, aggressive VAT stance on intellectual services/property - including banking services, increases in stamp tax on wire transfers, slow VAT recoveries for businesses, need for tax compliance statements when doing business with the government just to get paid, expropriation of Baha Mar from a private individual via interference, BEC pollution raining down out west probably causing cancer, threat of price controls on retail businesses, demand for faster VAT statements, holding up shipments for large businesses in Florida for manifests, going against the people on gambling and still pushing for gender equality despite voter rejection etc. etc. I could go on and on but will stop there.

The government can do this with impunity because the rich are not their constituency as their voting numbers are few and the opposition is in complete disarray, filled with uncontrollable egos and splintered beyond repair. Also despite what everyone says there is a lot of money in the Bahamas, and the rich have the bulk of it. Look at the massive VAT haul of +$600m per annum. I think it has even surprised the government. The rich are only starting to feel the burn but they think it will not get worse. Don't worry it will as long as they sit back and complain and do nothing.

The PLP and Government are one big 2 billion dollar revenue business. It has its hands in every transaction via VAT and has it hand in every monopoly or duopoly such as telephone, cells, water, ports, airports, education, local government, contacts etc. etc. Favors are handed out and withheld depending what they believe is expedient to keep them in power.

When the election comes around they will get the majority of the votes from the poor and ignorant as their campaign is being (yes present tense) well financed. The poor are dependent on them for jobs, health care, school etc. etc. Of course without campaign finance reform which would make it an offence to exchange votes for a favor or worse etc. they are invincible as there is no transparency of where the financing is coming from. Besides its completely legal.

Christe has already put us on notice that he will not resign like Cameron in the UK. He told us to wait and see what the voters say next year.

The voters have spoken before and will speak again. The votes of the poor, uneducated and unemployed are for sale.

So stop complaining as no one but the intellectual class actually reads these blogs.

observer2 says...

also, as a local business man with a number of businesses, look carefully at those businesses to see which ones are profitable and which one are a cash drain. close down those businesses which are not making money, once they are closed you cancel the business licenses, vat registration, employees, national insurance, accountants to do vat etc etc. if you look carefully at what you are doing 20% of your business makes 80% of the profit, the rest you are just giving money to the government

observer2 says...

Excellent point ohdrap4, where possible i am getting rid of any and every cost i possibly can. i got rid of my fax line, i got rid of my cell phone, i got rid of my cable tv which is only crap service, i order as much as possible online, i stopped my house insurance, i put 3rd party on my car, i cut out my comprehensive health care and put on critical care for 1/4 the cost (why pay vat on health insurance and then when you get sick you pay vat again on the doctor bill), i cancelled my club subscription, so i'm saving thousands of dollars and feeling much better. i am using the saved money to travel and enjoy life rather than giving it to this incompetent government in taxes

The problem is by the time you buy locally the fellas dem already charge you vat 4 times (1.on import, 2.on the duty of the import, 3.the wholesaler and 4.then the retailer). Buy direct from Amazon.

observer2 says...

Also government now applying VAT to inward financial industry information provision flows such as Bloomberg Professional services. This massive business along with financial advisers will leave the country as VAT recovery is not applicable to VAT unregistered mutual funds.

Government complains about de-risking correspondent banking issues and then tax the already trouble financial services industry out of existence.

Watch this space.

observer2 says...

Agreed and at great risk to our entire financial system through the Bank of the Bahamas. This is because the Bank of the Bahamas is the only financial entity which is accepting gambling deposits from the semi-licensed web shops.

The government doesn’t fully appreciate the systemic importance of the Bank of the Bahamas and that if something had to happen to the Bank of the Bahamas’ correspondent relationship due to web shops it would impact the entire Bahamian banking system due to the interrelationships between the institutions, the Central Bank and the governments own finances. The Bank of the Bahamas US correspondent will continue to provide correspondent banking until it suddenly stops without notice and without providing a reason. Banks are under no obligation to bank with someone they don’t want to bank with. Relationships are under continuous evaluation.

The government also does not appreciate that if the Bank of the Bahamas trades with all other local banks and other financial institutions such as insurance companies and credit unions then the proceeds of web shop gambling is indirectly transmitted through the financial system and into the economy and indirectly through their counter-parties correspondent network in New York. Watch this space for de-risking 2.0.

Are our regulators really so simplistic and naïve that they believe that unacceptable financial transactions in one financial institutions can be ring fenced just by using another bank?

Lord have mercy.