01242018 business

business@tribunemedia.net

WEDNESDAY, JANUARY 24, 2018

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PM’s rep admits to ‘ludicrous’ tax bills

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

he Prime Minister’s Abaco representative yesterday pledged that “every measure is being taken” to resolve the “ludicrous” property tax bills undermining all Family Island economies.

James Albury, parliamentary secretary in the Prime Minister’s Office, said the Government readily conceded that the 2018 property valuations - and associated tax bills issued to foreign second home and real estate owners - were “inaccurate and unfair”.

* ‘Every measure being taken’ on property tax grief * Foreign investors told: Pay 2017 sums assessed * Parliamentary secretary blames Nassau for woe Admitting that the Department of Inland Revenue had made a serious error, which had resulted in foreign investors receiving tax bills higher than the value of their property in many cases, Mr Albury blamed Nassau for the problem.

He said the inflated real estate valuations, and subsequent tax bills, had resulted “from a general exercise at a central level”

that produced assessments which were wildly inconsistent with the true worth of property throughout the Family Islands- not just in Abaco.

Speaking after a meeting was held at the Prime Minister’s Office in Abaco to address the resulting backlash, Mr Albury promised to “do my utmost” to ensure the Ministry of

SEE PAGE 4

ALBURY

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Florida firm collects ‘significant sum’ in local property taxes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FLORIDA-based company yesterday said it had collected “a considerable sum” in outstanding Bahamian real property taxes amid concerns over the Government’s hiring of a foreign firm.

Kevin Brennan, managing member at Real Property Tax (RPT) Recovery Authority LLC, told Tribune Business it had been working since late 2014 to collect sums due from delinquent foreign owners of Bahamian real estate.

He likened the company’s to that of an “ombudsman” rather than a traditional debt collection agency, describing its role as that of a conciliator that resolved disputes “and collected

* RPT RECOVERY AUTHORITY QUIETLY HIRED BY CHRISTIE GOV’T * EX-MP SAYS FOREIGN FIRM’S ENGAGEMENT ‘UNACCEPTABLE’ * FOCUSED SOLELY ON FOREIGN PROPERTY OWNER DELINQUENTS appropriate taxes” due to the Bahamian government.

However, the Christie administration’s silent hiring of RPT Recovery Authority yesterday provoked disquiet among Bahamian attorneys and realtors when its role was disclosed during a meeting at the Prime Minister’s

SEE PAGE 7

Fears property tax Double-digit lay-offs likely as a damage ‘irreparable’ result of 4 RBC branch closures

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ATTORNEYS and realtors yesterday expressed fears that much of the damage caused by the Government’s property tax over-billing is “irreparable” for Abaco and other Family Islands.

Speaking after a meeting was held at the Prime Minister’s Office to redress the Department of Inland Revenue’s mistake, they warned

* ATTORNEYS, REALTORS: ‘BAD NEWS OUT THERE’ * INLAND REVENUE NOW IN ‘MAJOR DEBACLE’ * PUSH FOR MINISTRY OF FINANCE STATEMENT that many “appalled” investors and second home clients were threatening to

SEE PAGE 6

EXCHANGE CONTROLS RELAXATION PRESSURE ‘NOT UNMANAGEABLE’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank yesterday said the latest exchange control relaxations will “not pose unmanageable pressures”, as it moved to ease the import burden for merchants.

The regulator, unveiling liberalisation measures for goods importers or the current account, said the external reserves and currency peg woulds not be threatened - especially given the extra support

* MERCHANDISE IMPORTS INCREASED TO $1M * CURRENT ACCOUNT REFORMS ALSO UNVEILED anticipated increased tourism-related imports.

Confirming the implementation of measures announced previously by the Prime Minister, the Central Bank also revealed that it is increasing merchandise

SEE PAGE 2

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MORE double-digit job losses are likely at Royal Bank of Canada (RBC) after it last night announced the closure of four branches, including a pull-out from Andros and Long Island.

The move, which comes as the Canadian-owned bank pushes its clients to online and mobile banking, will result in the closure of its Andros Town and Gray’s locations on March 30 and April 13, respectively.

And two Nassau locations - Robinson Road and

* Bank unveils Andros, Long Island pull-out * And JFK, Robinson Rd consolidations * Less than 2 months after ‘growth’ pledge John F Kennedy drive - will be merged and consolidated with RBC’s existing Carmichael Road locations on March 16 and March 23, respectively.

RBC, in a statement, did not specify the resulting number of job losses, although a spokesperson confirmed to Tribune Business that lay-offs will occur.

This newspaper’s e-mailed questions regarding the number of redundancies

and other related issues were not returned before press time.

However, Nathaniel Beneby, RBC’s managing director for the northern Caribbean, including the Bahamas, said: “We are providing strong support to assist affected employees through this transition......

We will work with all impacted employees to find ways in which we can support their careers going

forward, whether within RBC or elsewhere.

“Like all businesses, we constantly evaluate our operations to ensure we continue to match our services with the needs of our customers, and we are fully committed to ensuring smooth, uninterrupted service to our customers, continuing to meet our clients’ expectations and

SEE PAGE 2

PAGE 2, Wednesday, January 24, 2018

THE TRIBUNE

Exchange controls relaxation pressure ‘not unmanageable’ FROM PAGE 1

credit cards belonging to foreign companies domiciled in this nation has also been removed.

“The liberalisation proposals are not expected to pose unmanageable pressures on foreign exchange markets or on the foreign reserves of the Central Bank,” the regulator said in a statement. “Tourism inflows are expected to strengthen over the medium-term, providing support for any net increased demand for foreign exchange.

“In the business sector, where the reforms are most significant for access to foreign currency deposit accounts, impact would also be contained by the restriction that funds accumulated must be used to pay largely for imports of goods and services.”

While the non-hotel sector will still earn most of its revenues in Bahamian dollars, the Central

import approvals “across the board” to $1 million once backed by invoices and documented obligations.

“Previously, payments were subject to a delegated limit of $0.5 million for non-oil merchandise and $25,000 for oil imports,” the Central Bank added.

It has also extended the same authority, already delegated to commercial banks and other authorised dealers, to increase the foreign currency limits for foreign travel from $10,000 to $15,000 once evidence of the trip is provided.

Other current account liberalisation involves increasing the $25,000 per transaction cap to the actual billed amount for invoices including port services, patent registration, commissions and royalties. And the cap on credit limits for Bahamian dollar corporate

Bank said tourism inflows through the hotel sector will continue to satisfy foreign currency demand.

It added that the increased exchange control authority delegated to banks and other financial services providers would reduce transaction costs and time for the Bahamian private sector.

“As an important benefit, these reforms shift a further significant processing of foreign exchange transactions approvals outside of the recurring purview of the Central Bank,” the regulator explained. “This is an administrative cost saving for the private sector, and for the Bank’s internal resources.

“In particular, the annual correspondence stream around the renewal of permits for foreign currency deposit accounts will cease, as will correspondences to the Bank around signatories on such accounts. For

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current account transactions, a higher volume of trade payments will also bypass direct Central Bank approvals. More efficiencies would materialise once the operation of the investment currency market shifts to commercial banks.”

Bahamian businesses are likely to welcome the latest round of exchange control liberalisation, which is set to take effect on February 1, 2018, and is a critical component in the Government’s plans to deregulate and reposition the economy.

Edison Sumner, the Bahamas Chamber of Commerce’s chief executive,

yesterday said the private sector had spoken to the Central Bank and its governor, John Rolle, on the proposed reforms but he had yet to review the details.

“The 2018 liberalisation continues to prioritise preservation of the economy’s capacity to maintain adequate supplies of foreign exchange for trade-related payments, and to safeguard the stability of the Bahamian dollar fixed exchange rate,” the Central Bank said.

“The capital account reforms target a prudent balance, promoting

economic dynamism through sustainable financial flows, which do not undermine exchange rate and financial stability.

“On the current account, the delegated authority to commercial banks and money transmission businesses (MTBs) to approve most transactions, without prior reference to the Central Bank, is being increased. This places more reliance on the operating controls within these institutions to assess the bona fide nature of transactions, and detailed guidance and training provided from the Central Bank.”

Double-digit lay-offs likely as a result of 4 RBC branch closures FROM PAGE 1 provide more convenient and better service to our clients while creating greater efficiencies within our operations.”

RBC’s move comes as little surprise, given that all Bahamas-based commercial banks are constantly seeking to cut costs and achieve efficiencies in a low-growth environment characterised by low profits, high unemployment and a significant non-performing loan overhang.

However, it less than two months after Mr Beneby, in unveiling RBC’s transition to a digital banking model, said the move was “not about downsizing”.

He added that it was “not about shrinking our business or services”, and said: “These changes are not about downsizing. These changes are about enhancing the client experience, and creating more access, convenience and security.

“RBC has been in the Bahamas for 109 years.

These change is not about reducing or shrinking our business or services. This is more about growth. RBC continues to be fully committed to the Caribbean and the Bahamas.

“We enjoy long-standing relationships. We have clients with over 70 years of service with RBC. These

changes, and all the changes we are making, we want the Bahamian community to understand this is not about shrinking our business but it’s about growth.”

Many observers are likely to view Mr Beneby’s comments with increased scepticism following yesterday’s move, which comes at a time when RBC has eliminated several key in-branch services.

RBC stopped cashing cheques, accepting bill payments, taking deposits or buying and selling foreign currency for non-customers on January 2. It now only cashes government cheques and pension cheques for non-clients Deposits and transfers to other RBC clients’ accounts are also no longer accepted over-the-counter in branches, other than those for FINCO clients. The bank also ceased its FasDeposit service on January 15, while wire transfers will not be processed overthe-counter - and standing orders for credit cards discontinued - from January 31, 2018.

RBC yesterday touted the near-25,000 active users of its mobile banking app, and Mr Beneby was quoted thus: “These efforts are designed to bring us closer to our clients by giving them the ability to bank with us more easily through

an array of physical and digital channel options, including point of sale, a strong mobile mortgage and sales force, the RBC Mobile App, Digital Banking, ATMs and our stores.”

The bank, though, hinted at more branch closures and consolidations to come as its business model and transition to digital banking evolves. Andros and Long Island will be especially hard-hit by the closures, which drastically reduce and eliminate traditional banking options on those islands, and leave a void that traditional money transmission providers such as Western Union, and newer players like the web shops and e-payment firms, are seeking to fill.

Mr Beneby, in December 2017, said RBC’s digital drive would reduce the long queues and wait times experienced in many RBC branches as a result of network consolidation and mergers with FINCO branches, plus enhance the client experience and “put them at the centre of everything we do”.

He added that the elimination of numerous manual, in-branch transactions would free-up RBC staff to better interact with clients and understand their needs, as well as enabling them to focus more on selling products and services.

THE TRIBUNE

Wednesday, January 24, 2018, PAGE 3

Farmer: Import ban is ‘make or break’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A BAHAMIAN farmer yesterday backed the Government’s temporary restriction on imports of sweet and bell peppers and tomatoes, saying: “That’s a make or break situation right now.”

Christopher Pinder, one of the owners of Abacobased 5 Star Farms, a major local producer of tomatoes and peppers, said it is currently cultivating 200 acres out of an available 450, with the ability to provide

“right now” 4,000 cases of tomatoes and 2,800 cases of peppers. “If the Government provides proper protection we would be able to provide more stuff,” he said. “This is the first time any government ever took it this far and we applaud them for it.

“We’re still going to probably have to dump about 1,500 hundred cases this week. We’re hoping that after next week everyone conforms. That’s a make or break situation right now.”

Five Star Farms currently employs 70-80 persons, and has been producing vegetables for the past four years.

It has also been producing sod for the past nine.

Mr Pinder added: “Locals will buy; everyone is happy with the product. It’s just the big retailers who don’t want to buy. For some reason they don’t want to buy from us.” Tribune Business understands that a meeting on the matter between Customs, the Ministry of Agriculture and Marine Resources and local retailers/importers is set for Thursday.

Rupert Roberts, Super Value’s owner, also vouched for the quality of the farm’s produce. He said: “Five Star Farms in Abaco is

Farmers chair: Import block ‘too late’ for many

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Farmers United Association’s (FUA) chairman yesterday said the Government’s decision to temporarily restrict pepper and tomato imports was “too late” for many, even though he backed the move.

Dennis Cates, proprietor of Cates Farm and Petting Zoo, told Tribune Business that many Bahamian farmers had gone out of business having received little to no hurricane relief in the wake of Hurricane Matthew two years ago.

“I think it’s a good thing,” he said of the import restrictions, “but only a few farmers will be able to benefit; the rest are out of business. It’s really that in this country we have placed emphasis on so many other things rather than focus on feeding our people; it’s

ridiculous. This announcement is good for those who will benefit, but what about the ones out of business who got no assistance?”

He added: “We have farmers out here hurting.

I have lost over $300,000. I know of others others who lost millions, who lost everything. I could call names all day long.

“The Government needs to look at clamping down on these people misusing land. You have people building homes, apartments and convenience stores, and farmers are struggling to get land.”

The restriction by the Government also places an embargo on the importation of materials needed to grow these tomatoes and peppers. “Due to the high output of Bahamian farms throughout the country, the Ministry of Agriculture & Marine Resources has instituted restrictions on the importation of sweet

peppers or bell peppers and table tomatoes into the Bahamas,” the Ministry of Agriculture and Marine Resources said in a release.

“Until further notice, imports of these foods as well as material needed to grow them will be restricted from entering the country.

“According to director of agriculture, Gregory Rahming, the temporary restriction on imports will allow Bahamian surplus produce greater access to the retail market without the added competition of imported tomatoes and sweet peppers.”

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producing an abundant supply and excellent quality of tomatoes and green peppers. It’s very good quality at a competitive price.

We’re more than happy to support that and keep our money at home.”

Sidney Sinclair, owner of the Down To Earth Adventure Farm, said of the Government’s decision: “I think it’s a good thing. I’m growing quite a bit of tomatoes now and peppers. I think that this allows farmers an opportunity to really grow. I know they can do it.

It’s a good start, and hopefully it can eventually move to other things like kale, for instance, which we have been growing for years.”

PAGE 4, Wednesday, January 24, 2018

THE TRIBUNE

PM’s rep admits to ‘ludicrous’ tax bills FROM PAGE 1 Finance issued a statement that will “calm the market”. He admitted that “a lot of pain and uncertainty” has been caused by the unjustified tax hikes, which threaten to undermine a key driver of Abaco’s economy and “tear apart” its real estate market.

The Government’s proposed resolution is for foreign real estate owners

to pay property taxes based on their 2017 billings, once they have filed a dispute with the Department of Inland Revenue over the amounts assessed for 2018.

For those who have already paid their inflated tax billings for this year, the Government is offering to apply the excess as a ‘credit’ to property tax payments in future years.

The proposal was outlined at yesterday’s meeting chaired by Gaynell Rolle, the Department of Inland

Revenue’s Abaco undersecretary, with Mr Albury conceding that the Government “cannot undo mistakes that were made”.

He told Tribune Business: “This morning was to clear the air and make clear to legal representatives, and those in the property management and sales business, that the Government knows these appraisals are inaccurate and unfair, and every measure will be taken to now get this right.

GN1993

“These persons given these new appraisals and bills are only going to be required to pay the previous year’s amount provided they file their disputes with the Department of Inland Revenue, which most of the persons in the room had done [on behalf of their clients].”

Among those attending yesterday’s meeting were Abaco-based realtors, appraisers and attorneys, the latter including the likes of Frederik Gottlieb and Dupuch & Turnquest’s Heather Hunt.

Mr Albury cited the example, revealed by Tribune Business last week, of a 91 year-old American whose Little Harbour property was valued at $1.4 million by the Department of Inland Revenue despite a private appraiser finding its true worth was only $62,000.

“There’s a number of them in Abaco who have very significant outstanding and, quite frankly, ludicrous values from the Department of Inland Revenue,” he conceded to Tribune Business.

“As stated by Gaynell Rolle, this was the result of a general exercise at a central level in Nassau, which resulted in a lot of inaccurate appraisals, and the Department is engaged in a reappraisal process to alleviate and resolve this issue.

“I wasn’t privy to these decisions. I believe they were made some time ago.

They seem to have been made from a central, general assessment which did not accurately reflect the fair market values appraised by licensed Bahamas Real Estate Association (BREA) appraisers.”

A Tribune Business source present at the meeting was more blunt about the Department of Inland Revenue’s failings, suggesting it had overreached in its desire to boost real property tax revenues once it realised no Family Island appraisals had been conducted in the past decade.

“The goal is to improve the collection process, and somebody apparently pushed the button,” they said of the Government’s explanation. “They realised they hadn’t done an assessment for 10 years in the Out Islands.

“Some genius put a formula in the numbers, pushed the button and everyone got a new number. I think they’re a little embarrassed about the way it’s turned out.”

This error, which has created a potential crisis for foreign direct investment

(FDI) and real estate in the Family Islands, again illustrates the difficulties the Government faces in trying to maximise real property tax revenues, crackdown on evasion and ensure equity/ fairness between taxpayers.

The Department of Inland Revenue, grappling with an inadequate and incomplete property tax system, also lacks the manpower and knowledge required to properly assess values in the Family Islands and enforce collection.

Mr Albury, meanwhile, said he was “personally committed” to resolving the problems created by this year’s real property tax bills given the implications for Abaco’s second home market and broader economy.

“Here in Abaco, our tourism product is a little bit different,” he added.

“Our second homeowners drive the economy a lot more than in other islands of the country. We have a very strong second home market, and I and others in the Government departments here understand that very well.

“This is why I’m determined to rectify this outstanding issue and show persons investing in Abaco and the country that we take this matter seriously, and ensure steps are being taken to rectify it. I will make sure we follow up to get this right.”

With Abaco realtors reporting that many of their clients are threatening to sell-up and leave as a result of receiving exorbitant property tax bills, Mr Albury promised to press

for a statement from the Ministry of Finance to clarify the situation.

“What I stated today was I would to my utmost to make sure a general statement is issued, one formalised, so that the public can be notified and made aware of what measures are being taken so we calm the market, and those made nervous by appraisal values can know the steps being taken to rectify that,” the central and south Abaco MP told Tribune Business.

Mr Albury added that the Department of Inland Revenue’s errors had “led to a lot of pain and uncertainty” for the sector Abaco’s economy relies upon.

“We can all appreciate the devastating effects frustration and uncertainty among second homeowners can have on us,” he told this meeting. “I can tell you I will do my personal utmost to see this corrected.

“Everyone is very aware now of the devastating effects this can have, and is having, because of the pain created..... I’m certain we’re taking the right steps now.

“Unfortunately, we cannot undo mistakes that were made, but we can try and be proactive at this point and correct them, and make sure as we move forward it doesn’t happen again,” Mr Albury continued.

“It’s very unfortunate we came to this position, and that it happened, but I can’t say this enough: I’m personally committed, and I know the staff here at the Ministry of Finance on the ground are committed, to getting this resolved.”

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PAGE 6, Wednesday, January 24, 2018

THE TRIBUNE

Fears property tax damage ‘irreparable’ FROM PAGE 1 “sell-up and get out”.

While expressing optimism that the meeting’s outcome would lead to some resolution, Abaco-based professionals involved in the real estate sector

warned that “the bad news is out there” concerning the Bahamas and property tax bills that have either doubled or, in some cases, are worth more than the subject property’s value.

Frederik Gottlieb, the attorney and former MP,

NOTICE

NOTICE is hereby given that JOSEPH ALEXANDER RUSSELL of Cotton Wood St., Pinewood Garden, P.O.Box SS-19830,New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

In the ESTATE OF of PATSY PINDER COLEBY, AKA PATSEY CATHERINE COLEBY AKA PATSY CATHRINE PINDER AKA PATSY CATHERINE PINDER AKA PATSY PINDER AKA PATSY CATHERINE PINDER COLEBY. NOTICE is hereby given that all persons having any claim or demand against the above-named Estate are required to send the same to the undersigned on or before the 21st day of February, A.D. 2018 and if so required by notice in writing from the undersigned to come in and prove such demand or claim in default thereof be excluded from the benefit of and distribution made before such debts are provided. AND NOTICE is hereby given that all persons indebted to the said Estate are requested to settle their respective debts at the chambers of the undersigned on or before the date hereinbefore mentioned.

confirmed to this newspaper that the Government’s proposed resolution involved foreign real estate owners paying bills based on the 2017 valuation assessments for their properties.

Only foreigners pay real property tax in the Family Islands, and Mr Gottlieb said the Minnis administration was also proposing that anyone who had paid an inflated 2018 tax bill could apply the excess as a ‘credit’ to future years. All recent valuation assessments will be reviewed.

Mr Gottlieb said he asked Government officials at the meeting why valuation assessments had not been performed “before we got in this situation” and the excessive 2018 billings issued.

“A lot of the damage is irreparable,” he told Tribune Business. “I’ve had a lot of e-mails and communications from foreign clients who were appalled when they received these tax bills, and they’ve said: ‘I want to sell my property and get out’.

“It’s one thing for them to leave, but what about the damage done by them speaking to their friends and family? The [valuation] review should have been done before these bills went out.”

Foreign real estate owners will be allowed to

pay taxes based on their 2017 bills once a dispute is filed over this year’s valuation with the Department of Inland Revenue, but Mr Gottlieb expressed fears that this would “overwhelm” the agency based on the sheer volume of complaints likely to be received.

However, he conceded of yesterday’s meeting: “Certainly, if these assurances that have been given are followed through with, that will augur well. In any event, at least it’s a step in the right direction.”

James Rees, a broker with Abaco Island Properties (Bahamas), was equally pessimistic about the Government’s ability to undo the fall-out from its tax over-billing, adding that the meeting had also failed to deal with long-running problems involving his clients.

He last week revealed how a 91 year-old American’s 20-acre property had been valued at $1.4 million by the Department of Inland Revenue, compared to the $62,000 worth placed upon it by a private appraiser.

“They have not addressed my clients’ issues,” he told Tribune Business.

“They are trying to address this major debacle they have got themselves into with the taxation. It’s

Dated the 23rd day of January, A.D. 2018 Mangra & Co. Suite 12 Bayparl Building Parliament Street P.O.Box CB-11666 Nassau, The Bahamas

MARKET REPORT TUESDAY, 23 JANUARY 2018

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104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.11 4.13 1.98 176.30 149.66 1.53 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.47 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 3.85 17.43 9.09 3.34 0.92 0.18 3.68 8.70 6.10 4.80 9.01 2.63 1.50 9.09 6.00 10.45 6.24 4.47 12.51 10.00

CLOSE 3.85 17.43 9.09 3.34 0.92 0.18 3.68 8.70 6.10 4.80 9.01 2.63 1.50 9.12 6.00 10.45 6.24 4.47 12.51 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

110.43 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

110.51 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

5,000

VOLUME

NAV 2.11 4.13 1.98 176.30 149.66 1.53 1.70 1.62 1.10 7.16 8.40 6.29 11.28 11.60 10.21

EPS$ 0.475 0.932 -0.508 0.540 -1.220 0.000 -1.462 0.611 0.583 0.171 0.631 0.102 0.330 2.670 1.129 0.729 0.484 0.298 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.690 0.060 0.050 0.565 0.290 0.500 0.150 0.120 0.580 0.000

P/E 8.1 18.7 N/M 6.2 N/M N/M -2.5 14.2 10.5 28.1 14.3 25.8 4.5 3.4 5.3 14.3 12.9 15.0 23.0 0.0

YIELD 2.08% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.45% 3.61% 2.50% 7.66% 2.28% 3.33% 6.20% 4.83% 4.78% 2.40% 2.68% 4.64% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 6.00% Prime + 1.75%

MATURITY 31-May-2018 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 4.00% 4.39% 5.57% 5.69% 2.14% 2.44% 4.66% 3.89% 5.58% 6.65% 4.34% 4.34% 1.83% 1.83% 3.30% 3.30% 4.03% 4.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 30-Nov-2017 30-Nov-2017 24-Nov-2017 30-Sep-2017 30-Sep-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

a pretty broad spectrum affected from what I can gather; it’s all over the islands.”

Mr Rees said he was taking a “wait and see” attitude to the Government’s proposed solution, adding: “I don’t trust them any more. I’ve been working with this long enough. If people pay their bills without complaining, those bills may go into next year.

“It seems as if this situation has struck a nerve with them [Inland Revenue], but the damage they have done is pretty large at this point.

There’s a huge outcry, and everywhere the bad news is out there. They’ve been pushed to make a public statement, but I don’t know if they will.

“My suggestion was to roll out everything in this year, go back to 2017 and start afresh. It is what it is.

It’s disappointing we’re in this position. As realtors, we had so many complaints coming in and nobody had answers. We do have answers now, and we’re moving in the right direction, but we feel there’s a huge amount of damage in already.”

Bill Albury, an Abaco-based realtor with Damianos Sotheby’s International Realty, told Tribune Business he had asked for a Ministry of Finance public statement “to give the home owners some relief so they don’t

panic, and show they are trying to resolve the issue by going back to 2017 billings until this is resolved”.

He added: “This has been done without consultation with the Bahamas Real Estate Association (BREA), everyone is upset, and some second home owners are protesting and saying they are leaving and not coming back, as their property tax bills are worth more than their property’s worth.

“It was quite a contentious meeting. Everyone had a say, and even attorneys in the meeting were livid. It will be interesting to see where we go from here.”

Mr Albury said Gaynell Rolle, the Department of Inland Revenue’s undersecretary for Abaco, “spent a great deal of time defending” the Government’s position, rather than apologise for “putting the cart before the horse” and explain how it derived valuations and tax bills “without rhyme or reason”.

He added that a public statement from the Ministry of Finance would “carry a lot of weight”, and said: “Try to calm the market a bit, as it’s really heated over here and is really destructive to the market.

“I’m hopeful and am going to think positively.

Hopefully, today’s meeting was a step in the right direction.”

THE TRIBUNE

Wednesday, January 24, 2018, PAGE 7

FLORIDA FIRM from PAGE 1

Office in Abaco. Many of those present at the encounter, which was held to address the “ludicrous” 2018 real property tax billings that many foreign second home owners have been hit with, said they had never previously heard of the company or its activities before.

Frederik Gottlieb, the attorney and former MP, told Tribune Business it was “unacceptable” for the previous PLP government to have hired a foreign company to collect Bahamian taxes that were due and owing in this nation.

“As far as I understand, an American company out of Fort Lauderdale has been engaged by the Department of Inland Revenue to collect real property taxes owing in the Bahamas,” he said, declining to name the firm.

“I find it unacceptable that a foreign company has been engaged by the Government of the Bahamas to collect taxes in the Bahamas.” Mr Gottlieb, who was present at the meeting, said Gaynell Rolle, who chaired it in her capacity as the Department of Inland Revenue’s under-secretary for Abaco, declined to discuss RPT Recovery Authority after the company was mentioned.

“She did not deny it,” he added. “She didn’t want to discuss it. She said it was for the higher ups to deal with.” Ms Rolle did not return Tribune Business’s voice mail seeking comment on the meeting and RPT

Recovery Authority before press time last night.

RPT Recovery Authority is based in West Palm Beach, rather than Fort Lauderdale, but Mr Gottlieb said its hiring was especially troubling given that its compensation was likely far greater than that being offered by the Government to Family Island district councils for collecting real property tax arrears on its behalf.

He pointed, in particular, to Abaco’s Hope Town District Council, which has been given permission to collect real property tax within its local government area - and may be allowed to keep a percentage of what it gains.

“What is particularly disturbing about that,” Mr Gottlieb told Tribune Business of RPT Recovery Authority’s role, “is the Hope Town District Council has been given the right to collect real property tax, and it appears they may be allowed to keep a percentage of the tax they collect.

“It would be great for these district councils, as it will give them extra revenue for the benefit of the community. From what I understand, the maximum given is 4-5 per cent of what they collect.

“You can be certain that the company engaged in the US will be doing it for far more than 4-5 per cent.

It’s likely to be for 25-30 per cent. Why is an American company being given greater reward than a local district council where the monies would be used for the benefit of the local community?”

Tribune Business sources yesterday said Hope Town’s

chief councillor, Jeremy Sweeting, had collected around $700,000 in outstanding real property tax payments from Man O’ War Cay owners alone over the past year.

They suggested he and the council had been given a Memorandum of Understanding (MoU) to perform this function and, based on its terms, may be able to keep between 2-10 per cent of the sum they collect.

Mr Brennan said he was “very limited in what I can tell you” about RPT Recovery Authority’s terms of engagement due to its non-disclosure agreement (NDA) with the Government’s Department of Inland Revenue.

He did, though, confirm that “we’ve been at it since late 2014” in terms of its collection activities, which are focused solely on foreign property tax delinquents not Bahamians.

“We’ve collected a considerable sum,” he told Tribune Business of RPT Recovery Authority’s efforts, and argued that there was a strong rationale for the Government to hire a foreign company to pursue overseas tax defaulters.

“It makes sense if you think about it,” Mr Brennan said. “We’ve got to be very careful in terms of the way we operate. We try to act basically as an ombudsman.

We can identify people, and have the resources to go where people in the US, UK, Switzerland or wherever are. It’s an international scenario.

“We’ve been doing business in the Bahamas for quite a long period of time, know it will and try to be a good corporate citizen.”

He explained that RPT Recovery Authority was created in response to a need identified by his other business interest, Computitle, which operates an electronic database of Bahamian land title information.

Mr Brennan emphasised that the two businesses are “completely separate” from each other, with Computitle’s ‘land registry records’ proving invaluable to attorneys, realtors and foreign developers since 1986.

“This is how this all came about,” he explained. “In the title business, we saw virtually every time there was a transaction involving a non-Bahamian seller there was real property tax outstanding.

“We approached the Government in about 2013, and said we believe we can help resolve some of your issues.

It just makes sense from that perspective.”

Mr Gottlieb, though, was unconvinced, arguing that there were many established mechanisms that the Government and Bahamian debt collectors can employ to collect outstanding real property taxes from foreign real estate owners.

“I don’t think that’s the way to go about it,” he told Tribune Business of RPT Recovery Authority. “The mechanisms exist here in the Bahamas to collect real property tax.

“Outstanding real property tax is the first charge on property, and there are methods to enforce that charge.

“The lawyers have performed a tremendous amount of recovery for the Department of Inland Revenue in getting real property tax paid.”

General Manager Strategic Leadership • • • • •

•

Provide advisory and executive leadership of the resort.

Participate actively in Revenue Generation Meetings.

Oversee all Department Heads.

Generate Management Reports.

Accurately estimate resorts’ revenues, expenses, and earning based on past, present and expected operations.

Educate Department Heads to react to changes with business forecast.

Financial Compliance, Planning and Leadership • •

• •

•

•

•

• •

Responsible for accounting and financial control in the resort.

Ensure the collection and payment of applicable local taxes are accurate and timely.

Negotiate and monitor contracts with vendors.

Oversee timely submission of reports required by regulatory agencies.

Supervise the daily activities of the Finance department including: Purchasing, Receiving and Stores to ensure all standards are followed.

Ensure accurate and appropriate recording of revenues and expenses.

Review annual budgets and monthly forecasts; establish or recommend to management major economic objectives and policies for the resort.

Maximize cash flow performance of the resort.

Lead and manage the Finance department and ensure all standards are followed.

Suitable Requirements

• •

•

•

•

• •

•

• •

Minimum fifteen (15) years’ experience as a General Manager.

Minimum of ten (10) years’ experience with US Tax compliance standards and best practice regulations.

Minimum of five (5) years’ experience with implementing compliance monitoring systems with anti-monitoring laundering framework.

Experience in identifying the potential risk of money laundering and terrorist financial threats.

Experience with federal or commercial service, (COTS/GOTS) technology Yacht Captain or Pilot Captain license.

Sound knowledge of understanding and marketing of luxury resorts.

Highly computer literacy with an advanced level command of excel.

Knowledge of hotel technology, would be an advantage.

Strong problem solving and analytical skills.

Email: careers@chubcay.com

“The mission of RPT Recovery Authority is to assist the Government of the Commonwealth of the Bahamas in the administration of the Real Property Tax Act, with particular regard to nonBahamian owners of real property situated in the Bahamas.”

Its four tasks are to ensure that the Department of Inland Revenue’s records match public records, and the correct taxpayer/owner is being billed; to assist with providing fair and accurate valuations; advise foreign owners about the need to pay taxes and the consequences for not doing so; and helping them to pay sums owing and avoid forfeiture of their land.

Mr Brennan described the real property tax system as “a mess”, and added: “I know the Department of Inland Revenue has been working hard to straighten out the mess, but it’s pretty significant.

“There are people issues, there are human resource issues that make it very difficult, and a lot of entrenched taxpayers that have land information. In many cases the Department of Inland Revenue doesn’t have the right owner.”

Mr Brennan said cases such as the one identified by Tribune Business earlier in the week, where the wrong person received a $125,000 tax bill for an inaccessible Long Island lot “in the bush”, are “not rare, I’ll put it that way”.

He added: “They’ve had numerous consultants in to unravel the mess. It’s a big one, and has got to be sorted out at some point in time.”

NOTICE

NOTICE

Resort & Marina is seeking to hire persons in the following positions:

The Government, though, has made clear that it will no longer wait for property/real estate to be sold to recover taxes owing to it. Traditionally, outstanding real property tax has been paid at the time of sale, as vendors are unable to provide a buyer with clear title until that ‘first charge’ is settled.

The Minnis administration, though, has given every indication it will move to aggressively collect on all outstanding taxes given the need to boost cash flow amid its ongoing fiscal crisis.

But Bill Albury, a realtor with Damianos Sotheby’s International Realty, told Tribune Business that RPT Recovery Authority’s role was “bitterly protested” by many of those present at yesterday’s meeting at the Prime Minister’s Office.

“It was to the dismay of everyone present,” he told Tribune Business of the disclosure. “It was quite alarming to learn that.”

James Albury, the Abaco-based parliamentary secretary in the Prime Minister’s Office, yesterday said he, too, was unaware of RPT Recovery Authority’s existence until it was disclosed at the meeting.

“I’ve not had time to follow up on it,” he added.

RPT Recovery Authority appears to have been created solely for the purpose of pursuing foreign tax delinquents. Its website and Mr Brennan’s Linkedin page state: “RPT Recovery Authority LLC has been engaged by the Government of the Commonwealth of the Bahamas to assist in the collection of past-due real property taxes for Bahamian real estate owed by non-Bahamian obligors.

Resort & Marina is seeking to hire persons in the following positions:

Financial Controller Strategic Leadership •

•

• •

•

Analyze financial information and to recommend or develop efficient use of resources and procedures; provide strategic recommendations and maintain solutions to business and financial problems.

Provide advisory and executive leadership in meeting the strategic financial goals of the resort.

Participate actively in Revenue Generation Meetings.

Accurately estimate resorts’ revenues, expenses, and earning based on past, present and expected operations.

Educate Department Heads to react to changes with business forecast.

Financial Compliance, Planning and Leadership • •

• •

•

•

•

•

• •

Responsible for accounting and financial control in the resort.

Ensure the collection and payment of applicable local taxes are accurate and timely.

Negotiate and monitor contracts with vendors.

Prepare Chart of Accounts, forecast report and manpower budget.

Oversee timely submission of reports required by regulatory agencies.

Supervise the daily activities of the Finance department including: Purchasing, Receiving and Stores to ensure all standards are followed.

Ensure accurate and appropriate recording of revenues and expenses.

Preparation of annual budgets and monthly forecasts; establish or recommend to management major economic objectives and policies for the resort.

Maximize cash flow performance of the resort.

Lead and manage the Finance department and ensure all standards are followed.

Suitable Requirements

•

•

•

•

•

• •

•

• •

Minimum fifteen (15) years’ experience as a Financial Controller.

Minimum of ten (10) years’ experience with US Tax compliance standards and best practice regulations.

Minimum of five (5) years’ experience with implementing compliance monitoring systems with anti-monitoring laundering framework.

Experience in identifying the potential risk of money laundering and terrorist financial threats.

Experience with federal or commercial service, (COTS/GOTS) technology Experience in preparing financial loans and mortgages.

Sound knowledge of understanding and marketing of luxury resorts.

Highly computer literacy with an advanced level command of excel.

Knowledge of hotel technology, would be an advantage.

Strong problem solving and analytical skills.

Email: careers@chubcay.com