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.
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?
VAT is a tax Trojan Horse which should never have been allowed to be implemented. Its tentacles touch every single economic trade which occurs in the country no matter how small. It gives the government incredible insight into the economy, massively reduces privacy and is open to abuse.
With over $600 million raised per annum it essentially eliminates the governments need for enhance internal controls, transparency or cost containment. Before a good or service reaches the end consumer VAT has been applied multiple times. Businesses are experiencing problems getting refunds from the Government as detailed in the article.
It also allows the government to increase the tax from 7.5% to 10% to 14% as the deficit continues to grow as VAT is not directly applied to the deficit and we have nothing to show for the massive tax increase. The roads are still poor, the national school average remains a D, crime is still out of control and the Auditor General continues to expose horrendous amounts of missing funds in government agencies. No one has or will change, no one will be prosecuted and no one in government is listening to the people. Why should they? Government is big business.
Very good point John. I've attached a graph of a representative Puerto Rico Government Bond which shows that the prices declined from 100 cents on the dollar to 60 cents on the dollar and they have stopped paying on the debt.
I would suggest that the Bahamian government devalue the currency while they still have time. All of the B$ debt is owed to Bahamians so it would not impact foreigners, which seems to be all we care about these days.
Moving into election mode the government will now need to inject a lot of debt spending into the economy to secure another 5 year term. They have a good chance of winning as the opposition is in disarray.
VAT has caused a spike in Bahamian inflation which Bahamian are cutting expenditures where they can to balance their personal budgets.
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.
On Aviation attorney ‘turned clients away’ over tax uncertainty
Posted 21 June 2016, 8:30 a.m. Suggest removal
observer2 says...
http://www.youthfulsolution242.com/
On Independent candidate bids for Bain and Grants Town seat
Posted 21 June 2016, 8:24 a.m. Suggest removal
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.
On Web shop jobs to beat Atlantis in ‘2-3 years’
Posted 15 June 2016, 8:53 a.m. Suggest removal
observer2 says...
VAT is a tax Trojan Horse which should never have been allowed to be implemented. Its tentacles touch every single economic trade which occurs in the country no matter how small. It gives the government incredible insight into the economy, massively reduces privacy and is open to abuse.
With over $600 million raised per annum it essentially eliminates the governments need for enhance internal controls, transparency or cost containment. Before a good or service reaches the end consumer VAT has been applied multiple times. Businesses are experiencing problems getting refunds from the Government as detailed in the article.
It also allows the government to increase the tax from 7.5% to 10% to 14% as the deficit continues to grow as VAT is not directly applied to the deficit and we have nothing to show for the massive tax increase. The roads are still poor, the national school average remains a D, crime is still out of control and the Auditor General continues to expose horrendous amounts of missing funds in government agencies. No one has or will change, no one will be prosecuted and no one in government is listening to the people. Why should they? Government is big business.
On New tax enforcement move ‘unconscionable’
Posted 7 June 2016, 9:20 a.m. Suggest removal
observer2 says...
So exactly what is the growth rate? -1.7? (last year) 0.5%? (this year) 1.5% (IMF)?
The answer is we don't have a clue except it's probably negative.
On PM cuts 2016 GDP growth to just 0.5%
Posted 26 May 2016, 12:30 p.m. Suggest removal
observer2 says...
http://tribune242.com/users/photos/2016…
On Gov’t adds $1.6bn to national debt over three years
Posted 25 May 2016, 11:36 a.m. Suggest removal
observer2 says...
Very good point John. I've attached a graph of a representative Puerto Rico Government Bond which shows that the prices declined from 100 cents on the dollar to 60 cents on the dollar and they have stopped paying on the debt.
I would suggest that the Bahamian government devalue the currency while they still have time. All of the B$ debt is owed to Bahamians so it would not impact foreigners, which seems to be all we care about these days.
Moving into election mode the government will now need to inject a lot of debt spending into the economy to secure another 5 year term. They have a good chance of winning as the opposition is in disarray.
VAT has caused a spike in Bahamian inflation which Bahamian are cutting expenditures where they can to balance their personal budgets.
On Gov’t adds $1.6bn to national debt over three years
Posted 25 May 2016, 11:35 a.m. Suggest removal
observer2 says...
Not sure the government can afford or has credit to buy gas for the new boats.
On Crooked Island residents see no end to fire turmoil
Posted 19 April 2016, 1:56 p.m. Suggest removal
observer2 says...
fred ga say dey mess'in wit we sovereignty and he parliamentary privilege, as da law don't apply to plp
On US warning over govt corruption
Posted 14 April 2016, 3:35 p.m. Suggest removal
observer2 says...
even da chinesse dem slow'in down dey investments
On US warning over govt corruption
Posted 14 April 2016, 3:31 p.m. Suggest removal