03122018 business

business@tribunemedia.net

MONDAY, MARCH 12, 2018

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Bahamas in last-ditch bid to avoid ‘blacklist’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

he Deputy Prime Minister and minister of financial services were yesterday travelling to Europe in a last-ditch bid to plead the Bahamas’ case against being ‘backlisted’.

Carl Bethel QC, the Attorney General, confirmed to Tribune Business that both K P Turnquest and Brent Symonette are leading a government delegation that will hold “face to face meetings” with the European Union (EU) in an attempt to ward off the potential reputational and economic damage this would inflict on the Bahamas.

With finance ministers from the 28-nation EU set to meet tomorrow to ratify the Bahamas’ inclusion on the ‘blacklist’, the Minnis administration was engaged in feverish ‘11th hour’

* DPM, Brent fly to Europe to plead case * AG ‘finalises’ draft Bill to address EU fears * Says ‘miscommunication’ put nation in danger efforts over the weekend to convince them otherwise.

Mr Bethel revealed he had called in Attorney General’s Office staff on Saturday to deal with the drafting of legislation that would address the EU’s concerns, which focus on the ability of multinational companies to use Bahamian financial products and structures for tax avoidance purposes.

He said they had produced “a very good Bill”, which was set to be shared with the Prime Minister, Deputy Prime Minister and minister of financial services, to deal with both the EU’s fears and the issue underpinning them - implementation of the Organisation for Economic

DPM blasts blacklist threat as ‘premature’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Deputy Prime Minister has slammed the European Union’s (EU) threatened ‘blacklisting’ of the Bahamas as “premature”, and effectively accused it of ‘changing the rules of the game’.

K P Turnquest told Tribune Business that the “timeline” given by the EU for judging whether the Bahamas, and seven other hurricane-ravaged nations, were compliant with its anti-tax avoidance drive was December 2018.

While the Europeans had

SEE PAGE 2

Miller brands Oban project as ‘a hoax’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN outspoken former Cabinet minister has branded the $5.5 billion Oban Energies project “a hoax”, and blasted: “It will not happen.” Leslie Miller, who was minister of trade

and industry from 20022006, told Tribune Business there was “no need” for the proposed oil storage/terminal refinery because no such plant had been built on the US eastern seaboard and Gulf coast since 1977.

Suggesting that this raised

SEE PAGE 5

Bahamas blacklisting ‘came out of left field’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net EUROPE’s planned ‘blacklisting’ of the Bahamas has “come out of left field”, a former financial services minister expressing fears over the potential fall-out for correspondent banking and

custodial relationships.

Ryan Pinder, now a Graham, Thompson & Company attorney and partner, warned that the European Union’s (EU) branding of this nation as ‘non-cooperative’ in the fight against tax avoidance could result in foreign financial institutions

SEE PAGE 6

CARL BETHEL Co-Operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative.

Suggesting that this legislation would now ‘move

up’ the Government’s agenda, Mr Bethel blamed “a series of miscommunications” by both the Bahamas and European Union (EU) for placing this nation at risk of being ‘blacklisted’.

Without giving specifics, he suggested the EU had failed to properly notify the Bahamas about the “timing and details of implementation” it was seeking in attempting to curb tax avoidance by multinationals.

Refusing to blame either side, the Attorney General said the Government would “do all that is necessary” to defend the Bahamian financial services industry’s “right to compete on a level

SEE PAGE 10

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Roberts: EY had ‘no right’ to probe political decisions

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation’s (WSC) forensic auditors have “no right to question” politically-led decision-making, a former chairman has blasted.

Bradley Roberts, the ex-PLP MP and Cabinet minister, told Tribune Business that Ernst & Young (EY) had no business probing his instructions to cease disconnections of delinquent customers during the run-up to the 2012 North Abaco by-election.

“That was only for a short period. I don’t know why that’s a big deal,” Mr Roberts, who was chairman from 2012-2013, said of the Central Pines disconnection suspension.

“I don’t think that was even a matter for anybody to review. There was nothing hidden about that. That was completely open for everybody. To even waste time on that, my God.” Mr Roberts, who subsequently became Progressive

* EX-WATER CORP CHAIR: ‘NOBODY ELECTED THEM’ * SLAMS OBIT RELIANCE TO PROVE DAVIS LINK * BRANDS FORENSIC AUDIT ‘WASTE OF TIME’ Liberal Party (PLP) chairman, continued: “It was simply a stop to the disconnections while the election was going on. We resumed immediately afterwards.

What’s the big deal?

“Absolute rubbish. You mean to tell me that an audit firm gets involved in that? Even if that was the case, you don’t have auditors to question a political decision. No, you do not, sir. You do not have the right. Nobody elected them [EY].”

Mr Roberts lashed out after EY’s forensic audit of the Water & Sewerage Corporation disclosed the

SEE PAGE 4

PAGE 2, Monday, March 12, 2018

THE TRIBUNE

DPM blasts blacklist threat as ‘premature’ FROM PAGE 1 met their promise to resume ‘contacts’ with this nation in February, Mr Turnquest said the Government had received no indication they were unhappy until Friday morning’s “note” revealing that the Bahamas had been recommended for inclusion on their ‘blacklist’.

Confirming that the Minnis administration had been “pretty much”

blindsided by the EU’s decision, the Deputy Prime Minister questioned whether the 28-nation bloc was applying a different standard to the Organisation for Economic Co-Operation and Development (OECD) when it came to judging if nations were in compliance with the latter’s Base Erosion and Profit Shifting (BEPS) initiative.

“It’s interesting to note that the timeline they gave is December 2018. This is

very much premature,” Mr Turnquest argued of the EU’s action. “Be that as it may, we are responding positively and will meet our commitments to adjust and comply with international best practices.

“With respect to BEPS, there are two arrangements that seem to be going on here, and maybe even competing with one another. The OECD has its standard, and the EU has its standard. We have been trying to comply with

both, and we thought we had responded to their concerns adequately only to have seen this note this morning.”

The EU Council, in announcing its original ‘blacklist’ in early December 2017, placed the Bahamas in an eight-nation grouping, along with the likes of the British Virgin Islands (BVI), Dominica and Turks & Caicos, that was to be given a further 12 months to meet its demands for “fairer taxation”, transparency and compliance with the fight against tax avoidance by multinational companies.

The Council’s official 38-page statement said it had suspended “the screening process” for the Bahamas and other seven, but warned that the process will resume in February 2018 “with a view to resolving these concerns by the end of 2018”.

This was interpreted as effectively giving the Bahamas a 12-month temporary reprieve during which it will have to meet the EU’s demands, thanks to the devastation wrought by Category Five storms Irma and Maria in the wider Caribbean.

However, the EU appears to suddenly have abandoned this timetable by disclosing - via the Reuters news agency - that the Bahamas, US Virgin Islands and St Kiits and Nevis have been recommended for inclusion on its ‘blacklist’, with the bloc’s finance ministers supposed to endorse the move tomorrow.’

“The deadline, timeline given to us was by end-2018, so we’ve been working towards that date,” Mr Turnquest told Tribune Business, who confirmed that the EU at least adhered to its February ‘contact’ promise.

“They did reach out to us around the beginning of February,” he confirmed.

“We responded to them.

They sent a follow up Thursday or Friday of last

week [the week before last].

They responded with some questions and clarifications on one point in particular.

We responded to them the same day, and had no indication of any other issue arising until we received this note on Friday.”

Mr Turnquest also hit out at the ‘leaking’ of the EU’s ‘blacklist’ decision to Reuters, a move many believe was designed to increase the pressure on the Bahamas to bow its demands.

Emphasising that the Bahamas had reacted immediately to the ‘blacklisting’ threat, the Deputy Prime Minister said the Government had already entered into discussions with the secretary-general of the EU’s ‘contact group’ - the body dealing with the anti-tax avoidance issue.

“Hopefully these discussions will result in a second look at our commitments, and hopefully we’ll avoid that so-called noncooperative list,” he told Tribune Business. “I think that we have demonstrated our commitment, and are proactive to respond to these matters.

“We have done what we believe demonstrates our commitment, and we believe we are on the timeline outlined and have taken the action necessary to qualify as a well-regulated jurisdiction. At this stage, until we hear something different, we ought to avoid being on any such list.

“At this stage I would only say we need not be pessimistic; let’s see how the meeting on Tuesday turns out. We are on this matter, and are taking the initiative to make sure our case is put forward with communications to EU ministers. We hope and expect they will come to understand and appreciate our position.”

The threatened ‘blacklisting’ of the Bahamas is tied directly to the OECD’s BEPS initiative, as compliance with the latter is one of three criteria being employed by the EU to

determine whether a country is co-operative in the fight against tax avoidance.

At its simplest, BEPS aims to ensure that the profits of multinational companies are taxed in the country where they are generated.

Multinational companies often use legitimate tax avoidance strategies to “exploit gaps and mismatches” between different countries’ tax rates and rules, and “artificially shift profits” to low or ‘no tax’ jurisdictions despite conducting no or minimal business there. This enables them to minimise their tax exposure by paying a lower rate than they otherwise would in countries where they do conduct business.

The Bahamas has elected to meet the minimum BEPS requirement by complying with four standards: (Action 5): Countering Harmful Tax Practices; (Action 6): Treaty Shopping; (Action 13) Transfer Pricing Documentation and Country-by-Country Reporting; and (Action 14) Dispute Resolution.

Yet financial services industry sources told Tribune Business that compliance with Action 5 was especially problematic for the Bahamas. This is because the OECD considers a corporate tax rate of 10 per cent or less to be a ‘harmful tax practice’, but the Bahamas - with no income taxes of any kind has an effective corporate tax rate of ‘zero’ because it simply does not have this system.

Therein lies the problem for the Bahamas in meeting both OECD and EU demands, and many observers believe the latter - in particular - is seeking to force this nation to implement a corporate income tax. Mr Turnquest declined to comment on this particular matter.

However, he agreed that the timing of the EU’s

SEE PAGE 3

THE TRIBUNE

Monday, March 12, 2018, PAGE 3

Strategic ‘blacklist’ response needed for EU ‘upper cuts’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas must gather all stakeholders to “brainstorm and strategise” on a response to the European Union’s (EU) ‘blacklisting’ threat and “ever-changing rules of the game”.

Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business that the EU’s decision is “certainly not good news” and requires immediate work by the public and private sectors to develop a response.

“The Government must gather a comprehensive understanding of the

rationale for the blacklisting, as it is obvious that the impression garnered by our governments in the previous round of blacklisting was misinformed,” said Mr Bowe.

“Further, there needs to be immediate action to gather all stakeholders to brainstorm and strategise on the plan that must be presented to the EU but, most importantly, be actioned in a rapid fashion to demonstrate compliance with the rules of the game, albeit ever changing rules.”

He added: “Given the various tax initiatives on the table, including WTO accession, Business License, tax compliance etc etc, there needs to be a comprehensive strategy regarding tax planning for the country

of The Bahamas, by hurricanes with milestones last summer on a and timelines that ‘watchlist’. The EU are acceptable to said these juristhose in the OECD dictions, which and EU. were given spe“While we are cial consideration, unfairly judged, we had been given can either cower until early 2018 under the pressure to respond to the or punch above EU’s concerns. our weight, but “When the that requires subBahamas was iniBOWE stantive action that tially not listed, is measurable and persons convenican be used as upper cuts ently omitted the reason for to the EU in demonstrat- not blacklisting the Bahaing we are an international mas, and this was due to the financial centre, superior in EU deferring its decision service and regulations.” as a result of the devastaThe ‘blacklisting’ deci- tion perceived to have been sion by the EU comes caused by the hurricane roughly three months after season,” Mr Bowe said. it placed the Bahamas “This is now coming to and seven other jurisdic- the forefront, as it appears tions that were impacted that the EU has taken a

decision that the impact of the hurricane season was minimal and that the current state of tax compliance in the Bahamas is not at an acceptable position. Therefore, Government and other stakeholders must be meticulous in understanding the rationale for the deferral, and most importantly, appreciate that temporary deferral was not an endorsement of the plans we have presented.

“The decks are always stacked against smaller international financial centres, as those carrying the bigger sticks do serve as bullies. The Bahamas has taken steps to align with the OECD and EU tax initiatives, as while we are not taking an accelerated path, we should be recognised for

moving at a pace that had previously been deemed acceptable. The changing goal posts is an unfair phenomena that, unfortunately, we as a country will have to grapple with in the global tax arena.: Mr Bowe added that while immediate action was necessary, the Bahamas must not rush in blindly. “We must remember the adage, less haste more speed – actions and decisions need to be expedited but not rushed blindly,” he said.

“We need not seek immediate reversal if the blacklisting is real, but rather strategic reversal with all hands on deck making decisions that are both tactical, short term and strategic, long-term.”

‘Not ready to call a crawfish bust’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Commercial Fishers Alliance (BCFA) president yesterday said that while he was not ready to label the 20172018 crawfish season a ‘bust’, it had been “rough”.

Adrian LaRoda told Tribune Business that with two weeks left in the season, he was still awaiting more data to determine how Bahamian fishermen fared this crawfish season. “It’s honestly still too early to say how the season would have gone because we are still collecting that data right now.

We still wait until the end of the month before the season closes,” he said. “I’m not ready to call the season a bust. I need to see more data. I can tell you, though, this season has been rough.”

Mr LaRoda said Hurricane Irma had dealt a significant blow to Bahamian fishermen this

crawfish season, and added: “That was a big blow to a lot of fishermen and some of them just shut it down for the season.”

Last October, the Minnis administration unveiled an exigency order to assist the sector and farmers following Hurricane Irma. The list of approved

duty-free goods includes materials used for the construction of fishing traps and condos. “We’re going to see what the final data tells us but I don’t think this was a very good season, and I doubt that the yield would be in line with last year, all things considered,” said Mr LaRoda.

DPM blasts blacklist threat as ‘premature’ FROM PAGE 2 threatened ‘blacklisting’ was “certainly not very helpful”, given that it coincides with efforts by the Bahamian financial services industry to hit the ‘reset’ button.

After being battered by international regulatory initiatives for the better part of two decades, the sector - as unveiled at its recent International Business and Finance Summit (IBFS) was finally hoping to put such turmoil behind it, and instead focus on repositioning itself and finding new growth opportunities.

Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that the poorly-timed EU ‘blacklisting’ action was “definitely not what we want”.

Acknowledging that the European action had been “looming from last year”, she added: “We’re always concerned, but we also know the Government is engaged in active dialogue with the EU to mitigate against any fall-out as a result of any blacklisting.

“It’s not a good thing.

It’s definitely not what we want. This has been a matter looming for the last year. The question is have we gone far enough, and what we need to do to further satisfy them. We will continue to do what we have to do from a business perspective.”

Ms McCartney said the threatened ‘blacklisting’ arises out of EU concerns

that the Bahamas has not done enough to prevent its corporate products and structures being used by companies, which have no physical presence or substantial activities here, for tax avoidance.

“The Government is making every effort to

ensure we understand how to put measures in place to prevent that,” she added.

“We want to commit, and commit to things we’re able to deliver on efficiently.

“Obviously there is a reputational risk we would be faced with if we are ‘blacklisted’. It increases

our risk profile with respect to correspondent banking, so these are factors we are considering as we engage with them and take the necessary steps to avoid it if at all possible.”

Many in the Bahamian financial services industry are questioning why the

EU has decided to ‘blacklist’ the Bahamas, but only add Anguilla, the British Virgin Islands (BVI), Dominica and Antigua and Barbuda to a so-called ‘grey list’.

These are jurisdictions which do not respect EU anti-tax avoidance

standards but have committed to change their practices. If the Bahamas is indeed ‘blacklisted’, it will be added to an existing six-strong list featuring ‘financial powerhouses’ American Samoa, Guam, Namibia, Palau, Samoa and Trinidad and Tobago.

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PAGE 4, Monday, March 12, 2018

THE TRIBUNE

Roberts: EY had ‘no right’ to probe political decisions FROM PAGE 1 former chairman’s ‘disconnection suspension’ e-mail in the ‘unusual/suspicious communications’ section of its report.

“EY identified an e-mail from October 2012 suggesting that former chairman Bradley Roberts was advised to stop disconnecting customers until after a bye-election,” the forensic audit said.

The e-mail in question, dated October 10, 2012, and copied to former deputy prime minister, Philip Davis, and senior Water & Sewerage Corporation executives, said: “Gentleman, DPM Davis has brought to my attention that he has been advised that water disconnections are being executed in Central Pines, Abaco.

“Doubtless you are aware that there is a bye-election currently underway in that

constituency. Kindly direct same be discontinued until after the election, and ensure all disconnected and [are] reconnected. Many thanks.”

The bye-election referred to is the North Abaco bye-election, which was held after the seat became vacant when former prime minister, Hubert Ingraham, resigned immediately following the 2012 general election. The byeelection was won by the

PLP’s Renardo Curry with a major vote swing, only for the Free National Movement to regain it last May. Many observers are likely to view Mr Roberts’s comments as confirmation of both the e-mail’s authenticity and its interpretation by EY. For the e-mail provides a further insight into how too much politically-motivated interference undermines well-established business practices at both the Water & Sewerage Corporation and other state-owned enterprises (SOEs).

The EY audit report paints a picture of politically-led decision-making overriding standard corporate governance and best business practice, helping to create a culture where protocols and procedures were routinely bypassed.

It also highlights how the system ‘works’ for those with the right ‘connections’ - family, political or otherwise - and how this gives rise to potential ‘conflicts of interest’ and other corporate breakdowns.

Ultimately, as indicated by the EY report, these weaknesses combine to produce significant losses - sometimes reaching to multi-million dollar sums - for Water & Sewerage Corporation customers and the Bahamian taxpayer that provides it with annual subsidies as high as $30 million.

Mr Roberts declined to go into further detail until he received, and read, a full copy of the EY forensic audit.

Yet he branded the report “a waste of time”, and blasted the methodology it used to connect Mr Davis to the company that was awarded the botched Gladstone Road Wastewater Treatment Plant contract, saying he had “never seen such sloppiness in my life”.

“Let me comment with regard to the ownership of the company [Nassau Island Development Company] that won the award to

build the facility,” Mr Roberts told Tribune Business.

“That the Deputy Prime Minister’s secretary could be connected to him as the owner of one share, a nominee share, through this newspaper obituary... I’ve never seen such sloppiness in my life.”

EY’s forensic audit revealed that a Merlene Poitier was shown in corporate registry files as holding one share of Nassau Island Development Company, the contractor for the Gladstone Road plant. The remaining 4,999 shares were held by company principal, Anthony ‘Larry’ Ferguson.

EY said it ‘understood’ that Merlene Poitier worked for Davis & Company, the deputy prime minister’s law firm, as a secretary. It also found e-mails referring to ‘Ms Poitier from DPM office’ in relation to a person Mr Davis allegedly wanted the Water & Sewerage Corporation to employ.

To try and pin down Merlene Poitier’s identity down, EY said it conducted “open-source research via Internet search engines”, and found someone with that name listed among ‘Other Relatives and Close Friends’ in an obituary for Mr Davis’s mother.

EY conceded that the results of its inquiries were inconclusive, saying: “It is unclear whether either of these people are the same individual who owns a share in Nassau Island Development Company.”

Mr Davis subsequently admitted, following the forensic audit’s publication in the House of Assembly, that Merlene Poitier was indeed a secretary at Davis & Company, but said he only learned she held a share in Nassau Island Development Company from the report.

“That was something new to me,” Mr Davis told reporters last week. “I spoke with her last night

and she indicated that she was a nominee shareholder in the company.

“She said she is a nominee, as the corporate laws require that there be at least two named shareholders on a corporation to maintain the company.

“A nominee shareholder, most law firms in incorporating a company would use persons in the office to hold the shares on behalf of the beneficial owners,” Mr Davis added.

“It does not inure any benefit. No financial benefit. They just hold it as a trustee, as it were, on behalf of the beneficiary and it’s unfortunate.”

It is, as Mr Davis said, fairly common practice for law firm secretaries and employees to be listed as nominee shareholders in the corporate registry, holding the shares on behalf of the true beneficial owners.

No mention was made of who Ms Poitier may have been holding the share for.

Mr Roberts, meanwhile, told Tribune Business he “found it rather strange” that the EY report appeared to take credit for “a matter I caused to be investigated”.

The former chairman said it was the Board he headed that hired RosTek Associates in April 2013 to perform a review of the Blue Hills reverse osmosis plant contract with BISXlisted Consolidated Water, following “a high volume of complaints due to red, rusty water”.

“I was shocked to see it being done by this audit team.

“I was absolutely shocked,” Mr Roberts said.

“With regard to the red water, I brought in a specialist team in the water industry and had that done.”

Summing up his verdict on EY’s efforts, he added: “I think it’s a waste of time, to be honest with you. I’d like to know how much that audit cost.”

Nassau Airport Development Company Ltd.

Expression of Interest (EOI) Lynden Pindling International Airport

Nassau Airport Development Company is seeking prescribed EOIs from qualified proponents for the design, financing, construction and operation of an on-airport hotel and multi-purpose facility at Lynden Pindling International Airport (LPIA).

The hotel and facility would play an important role in meeting the needs of connecting or in-transit domestic and international travelers; and enhance the passenger experience by providing conveniences, quality services and amenities for both business and leisure passengers.

Qualifications: Interested proponents should have at least 10 years of experience as a developer and operator of hotels within The Bahamas, Caribbean region or otherwise internationally and preferably in an airport environment.

Interested proponents must clearly demonstrate the ability to finance, develop and operate any hotel and multi-use facility project deemed feasible for the airport.

NAD’s Goals and Objectives are to: 1. Meet the needs of passengers and other airport stakeholders by providing appropriate amenities and services within the airport footprint.

2. Understand the current availability, capabilities and preferences of potential proponents to Design, Build, Finance and Operate an on-airport hotel and multi-use facility at LPIA. A detailed and confidential Expression of Interest Document for the above is available for distribution to potential proponents via email by contacting Ms. Jan Knowles, Vice President, Marketing and Commercial Development at jan.knowles@nas.bs.

Documents may also be collected from NAD’s Executive Offices located on the 3rd floor of The International Arrivals Terminal at The Lynden Pindling International Airport.

Documents will be distributed up to 4:00 P.M. EST on March 23, 2018.

Submissions in response to this EOI are to be received no later than Midnight EST on Friday, May 11, 2018.

After reviewing responses, NAD may request additional information or may schedule individual meetings with any respondent to gain additional information about the EOI.

THE TRIBUNE

Monday, March 12, 2018, PAGE 5

Miller brands Oban project as ‘a hoax’ FROM PAGE 1 major questions about the level of sustainable demand for the Oban Energies facility, Mr Miller said the seeming absence of any major oil industry players from involvement in the project created further doubts about its viability.

The ex-PLP MP, querying who Oban’s customers will be, suggested BORCO’s deep-pocketed owner, New York-listed Buckeye Partners, would have restarted refining activities at that site if there was demand for an offshore refinery in close proximity to the US east coast.

Calling for the Minnis administration to admit it had “screwed up, apologise and move on”, Mr Miller argued that disclosures such as the Ernst & Young forensic audit into the Water & Sewerage Corporation (WSC) were merely designed to distract the Bahamian people from the Government’s missteps.

He urged it to focus on “doing something meaningful for the lives of the Bahamian people”, and to realise: “You’ve got a country to run, not a little penny shop through the corner.”

Mr Miller, expressing surprise that the Government would “insist on going ahead” with the Oban Energies deal despite all the controversy and concerns swirling around it, said no major petrochemical plant or refinery had been built in the US Gulf coast or eastern seaboard since 1977.

Emphasising that he had researched the issue, the ex-minister said the last such facility was constructed in Corpus Christi, Texas. Given the lack of such activity ‘Stateside’, Mr Miller told Tribune Business: “There isn’t a need for this project in the Bahamas.

“They’re closing those projects down, not building them. It’s a hoax. It [Oban] will not happen because there’s no need for it to happen. There’s no need for this facility. It shouldn’t be discussed. My contention

is not that the Government signed a bad agreement; my contention is it’s not going to happen. It cannot happen and will not happen.”

Mr Miller pointed out that Buckeye Partners would have entered the offshore refining market through BORCO if the opportunity had been there.

However, Oban Energies and its partners beg to differ.

The developer, on its project website, said eastern Grand Bahama had been chosen for the $5.5 billion project based on the deep water access available to large tankers, and the land access to the ocean. Statoil’s presence meant the area was already a ‘brownfield’ site, lessening the environmental concerns, while the location is also wellremoved from populated areas.

Oban Energies, like BORCO, said it was aiming to exploit Grand Bahama’s US proximity and location on major shipping routes to serve as an offshore distribution/break bulk hub to an energy industry struggling for deep water ports on the Gulf Coast and south-east US. Larger vessels from North Africa, Europe and Asia can have their loads broken down, and transferred to smaller vessels, who will then take the product from Grand Bahama into the US. And US oil and energy exports can use the same route in reverse to get their products to market.

Tribune Business sources subsequently said the development was designed to exploit the US ‘Jones Act’, which requires foreignflagged vessels leaving US ports to make at least one call abroad before returning to the US. Much like the cruise lines, foreign-flagged tankers would bring crude product to Oban for refining before returning to the US with the finished blend.

However, Oban Energies has been embroiled in controversy ever since its Heads of Agreement signing, when it was revealed

that Peter Krieger, its nonexecutive chairman, had ‘plea bargained’ and settled both criminal and civil charges relating to a multimillion dollar US securities fraud.

Tribune Business also revealed that Mr Krieger was accused of misappropriating monies invested by a CLICO (Bahamas) affiliate, although that case was dismissed on a legal technicality. Further controversy then arose over whether he had signed the Heads of Agreement for Satpul Dhunna, Oban’s president, even though the document states it is the latter’s signature.

“There’s no need for more discussion,” Mr Miller told Tribune Business. “This one cannot work. Why waste time with it? Why build up the hopes of people in the US for something not needed on the eastern seaboard or elsewhere?

“Everyone is going to LNG. These plants are being discontinued. Why come up with something that makes no sense? That’s the only way I see it, Neil, it cannot happen.”

Mr Miller said a further concern was the apparent non-involvement of major oil industry and refinery players in the $5.5 billion Oban Energies project. The Government, and the developer itself, have both given the impression that major interests stand behind the project, but have yet to provide any proof.

“Where are you going to get the product from to store and refine?” he queried. “Who are the sellers?

Who are the parties that will utilise this refinery in the Bahamas, who’s going to buy the products from you in the Bahamas?

“Why should we amend the Industries Encouragement Act for the first time in 50 years for this company? It has never been amended. Why amend this for these guys who have no capacity to do this damn thing? It makes no damn economic sense.”

Rhone is a Swiss company established in 1982 with offices in Geneva, The Bahamas and Singapore. It creates and administers legal entities.

To bolster its Bahamas based team, Rhone is seeking

COMPLIANCE OFFICER MISSION To act as a Compliance Officer and Deputy MLRO and to assist the Compliance Director.

Together with the Compliance Director you would be responsible for Rhone’s Compliance requirements in The Bahamas and also provide supervision and certain support for the Group‘s other offices, principally in Switzerland and Singapore.

RESPONSIBILITIES INCLUDE o Review of new business, payments etc. to ensure compliance with internal procedures o Monitoring and Analysis of Transactions o Know Your Client checks o Clearance of Database checks o PEP reviews and reviews of higher risk rated cases o CRS and FATCA reporting (in The Bahamas and elsewhere) o Drafting and filing of Suspicious Transaction Reports o Liaison with the Central Bank of The Bahamas o Liaison with specialist compliance officers and advisors in other jurisdictions to ensure effective implementation of procedures on a Group level.

PROFILE o Bachelor’s Degree in an appropriate area o AML and Compliance certification o Five years relevant experience o Proficient in Microsoft Office o Excellent command of English, oral and written. An ability to also read and speak French would be an asset o Regulatory approval is a condition of the job No telephone calls accepted. Please submit written applications to: Compliance Director Rhone Trustees (Bahamas) Ltd PO Box SP 63131 Building No. 1, Bayside Executive Park West Bay Street & Blake Road Nassau, The Bahamas Deadline for Submission: March 23, 2018

Urging the Government to be honest, Mr Miller said: “This was just a mistake they made. Move on and try and find a project that will work. Say sorry, we screwed up, apologise and move on.”

And, calling on it to cease what he termed ‘distractions’, the ex-MP added: “Why don’t you run the

country in the best interests of the Bahamian people instead of dealing with guys like Oban.

“Do something meaningful for the lives of the Bahamian people.

Do something right for the Bahamian people. Create some jobs. You’re sending people home on Friday, and on Saturday you have a Job

Fair. Why do it? Please, I’m tired of it. I haven’t got time for foolishness.

“Grow up, man, grow up please. You’ve got a country to run, not a little penny shop in the corner.

It’s not East Street. This is the Commonwealth of the Bahamas. Get real. Try and run the country, and do it the best you can.”

RBC FINCO has a vacancy for:

MORTGAGE PROFESSIONAL What is the opportunity?

The ability/opportunity to develop relationships with both internal and external partners is crucial to your success, particularly within the community and realtors’ offices. Further, you build client loyalty through your keen desire to provide exceptional and personalized service, while your proven motivation and entrepreneurial sales style allows you to drive the business results you desire.

What will you do?

• Deliver a consistently superior client experience through focusing on mortgage and creditor insurance advice, submission of high quality credit applications, and appropriate anchoring routines in order to consolidate banking relationships and generate sales opportunities for partners • Introduce clients early to your branch partners considering customer needs and preferences, and respecting local market processes • Respond to and resolve client problems at first point of contact whenever possible, ensuring escalation to Sales Manager and/or Branch Manager as required • Maximize the use of all technology (e.g. Portable scanners, Laptops) to enhance productivity and client experience • Keep informed of current events, market news and internal information on RBCNet. • Maintain professional, advisory and supportive relationship with all RBC partners in local market and back office support groups • Develop annual sales/business development plan, and regularly review sales results to plan (monthly sales review/quarterly performance reviews) adjusting activities to achieve personal targets • Acquire mortgage clients through focusing on new clients to RBC, asking for business from external referral sources (eg. Realtors), satisfied clients, and servicing referrals from RBC partners/satisfied clients. Exercise due diligence to ensure “external partners” meet RBC, industry and legal standards • Meet every client face-to-face at least once, and exercise due diligence in following all procedures relating to identification, verification, fraud, and anti-money laundering. ® Registered trademark of Royal Bank of Canada. Used under licence.

What do you need to succeed?

Must-have • At least 3-5 years in lending\sales environment • Bachelor’s degree in Management or related field • Mobility is required Nice-to-have • Excellent communication skills • Strong organizational and planning skills • Strong Relationship building and collaborative skills • Ability to partner effectively with all stakeholders What’s in it for you?

• We thrive on the challenge to be our best, progressive thinking to keep growing, and working together to deliver trusted advice to help our clients thrive and communities prosper. We care about each other, reaching our potential, making a difference to our communities, and achieving success that is mutual.

• A comprehensive Total Rewards Program of flexible benefits, unlimited commission pay, and pension options • World-class training programs and career development opportunities • The advantage of working with a dynamic, collaborative, and high performing team where initiative and hard work are recognized and rewarded • A flexible work schedule based on client preferences and your own work/life balance • Innovative mobile technology to ensure your success Interested applicants should apply by Friday, March 16, 2018 at jobs.rbc.com Unsuitable applications will not be acknowledged

PAGE 6, Monday, March 12, 2018

THE TRIBUNE

Bahamas blacklisting ‘came out of left field’ FROM PAGE 1 viewing the Bahamas as ‘high risk’. Should this happen, he told Tribune Business it could lead to the loss and/or severing of international relationships that the Bahamian financial services industry - and wider economy - rely upon for the smooth conduct of cross-border commerce and

capital flows, especially with Europe. The Government is undertaking an extensive series of ‘11th hour’ moves in a bid to ward off the threatened ‘blacklisting’ before it is ratified tomorrow(see other articles on Page 1B), but Mr Pinder said he was “not very surprised” at the stance taken by the 28-nation EU. He argued that the EU and other groups

representing the world’s most powerful countries had “never had the Bahamas’ best interests at heart, only their own” when it came to the never-ending international regulatory initiatives affecting the financial services sector.

And, while the Bahamas “can bend over backwards as far as we want to bend”, the EU and its fellow travellers will never be satisfied

unless this nation refashions itself according to their design and wishes.

“Certainly it’s the name and shame game, just like every other ‘blacklist’ is a name and shame game,” Mr Pinder told Tribune Business.

“The question is to what extent it affects correspondent banking relationships with institutions in the Bahamas, and custodial relationships - the holding of securities - in Europe.

“Does that mean institutions will see us as high risk and don’t want to do business between ourselves and them, and will that affect custodial relationships and cross-border relationships?” the former minister continued.

“That’s the risk to the Bahamas. Perception, and

whether these institutions will see the Bahamas as high risk and want to do business with the Bahamas.”

The concern is that inclusion on the EU’s ‘blacklist’ could make the Bahamas more vulnerable to global ‘de-risking’ trends that have already seen local financial institutions, especially standalone entities that are locally owned, lose correspondent relationships with foreign banks.

The Bahamas has to-date avoided the worst effects of correspondent bank ‘de-risking’, which has hit the Caribbean particularly hard, with affected institutions here largely able to find new relationships to replace ones they have lost.

Correspondent banks are foreign institutions that enable their Bahamian

NOTICE

NOTICE is hereby given that OLVINCE JUNIOR INNOCENT of Pine Dale, Eight Mile Rock, Grand Bahama, 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 5th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

NOTICE is hereby given that RICHARDSON DORCE of George Town, Exuma, 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 5th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-3905, Nassau, Bahamas.

counterparts to provide services in their countries, using their physical and electronic banking infrastructure.

They give Bahamian banks, and their clients, access to the international capital markets and financial system, enabling transactions to clear and be settled on a timely basis, and foreign currency deposits to be taken.

Given the Bahamas’ status as an international business centre and services exporter, maintaining such links are vital to the sustainability of its economic model. For this reason, Mr Pinder said the ramifications of an EU ‘blacklisting’ stretch beyond the financial services industry.

He added that it could potentially impact industries, such as the crawfish sector, that trade with the EU, as well as tourism from that market given the need for currency conversion.

“It has a lot of ancillary affects,” Mr Pinder said. Besides reputational damage, any EU ‘blacklisting’ could also result in European financial institutions applying extra scrutiny to transactions originating from the Bahamas, thus delaying their completion.

The ex-financial services minister said the EU’s action appeared to have “come out of left field” and blindsided everybody, including the Government and Bahamian financial services industry.

He said the sector had “assumed” the Bahamas was on track to satisfy both EU and Organisation for Economic Co-Operation

SEE NEXT PAGE

THE TRIBUNE

Monday, March 12, 2018, PAGE 7

Bahamas blacklisting ‘came out of left field’ FROM PAGE 6

and Development (OECD) concerns, following the upbeat message presented when K P Turnquest, Deputy Prime Minister and minister of finance, and Brent Symonette, minister of financial services, returned from Europe late last year.

During that trip, the Bahamas signed on to the OECD’s Mutual Administrative Assistance in Tax Matters convention while also committing itself to compliance with the same organisation’s Base Erosion and Profit Shifting (BEPS) initiative.

Yet there were warning signs. Dr Hubert Minnis, in a statement to Parliament before Christmas, revealed that the EU ‘Code of Conduct’ group responsible for running the anti-tax avoidance initiative was already expressing concerns that the absence of corporate income tax meant the Bahamas was non-compliant with its demands.

“The issue that has given the [Government’s] review group pause, and will now require focused consideration, is the OECD’s [really the EU] directive that jurisdictions should not facilitate offshore structures and arrangements aimed at attracting profits which do not reflect real economic activity in the jurisdiction,” the Prime Minister said then.

“The Code of Conduct group has advised that the absence of a corporate income tax or a nominal corporate tax structure in the Bahamas is a matter of concern. Further, the lack of substance of some legal arrangements was highlighted.

“These matters have been the source of discussion, and are being reviewed to ensure that a plan of action is formulated to allow the Bahamas to remain off the OECD [and EU] blacklist that was recently published.”

Mr Pinder told Tribune Business that while implementation of a Bahamian corporate income tax was something the EU would like, it was unlikely to be something this nation had committed to as it would represent “an abandonment of sovereignty”.

“I’m not sure that’s something we committed to and made that

commitment,” he added.

“I’m sure the EU would want us to impose the tax system they’re comfortable with.

“That’s their modus operandi; something that fits them the best, but doesn’t fit the Bahamas the best. I never thought these institutions [EU and OECD] had the best interests of the Bahamas at heart; they only had their best interests at heart.”

Mr Pinder said he was “unfortunately not very surprised” at the EU’s ‘blacklisting’ move given how the Bahamas has been treated in the past.

“We can bend over backwards as far as we want to bend, but unless we conform in every respect to what the EU and other multinationals think we should be, rather than what we think we ought to be, we’re going to face this. It’s an unfortunate scenario,” he told Tribune Business.

Mr Pinder said the rationale for the EU’s ‘blacklisting’ was “perplexing”, and he queried whether the Bahamas had either failed to live up to a commitment previously made or simply been deemed unsatisfactory when it came to execution.

Mr Turnquest, in a statement issued on the Government’s behalf, revealed that the ‘blacklisting’ was proposed because EU officials felt the Bahamas has not done enough to prevent its financial products and structures from being used for ‘tax avoidance’ purposes by multinational companies.

This concern falls squarely under the OECD’s BEPS initiative, which aims to ensure that the profits of multinational companies are taxed in the country where they are generated.

Multinational companies often use legitimate tax avoidance strategies to “exploit gaps and mismatches” between different countries’ tax rates and rules, and “artificially shift profits” to low or ‘no tax’ jurisdictions despite conducting no or minimal business there.

This enables them to minimise their tax exposure by paying a lower rate than they otherwise would in countries where they do conduct business.

It is these activities that the EU is also determined

TEMPLE CHRISTIAN HIGH SCHOOL

ENTRANCE EXAMINATION 2018-2019

Temple Christian High School will hold its Entrance Examination on Saturday, March 24, 2018 at the school on Shirley Street from 9:00 a.m. to 12:00 p.m. for students wishing to enter grades 7, 8, 9 and 10.

Application forms are available at the High School Office. The application fee is twentyfive dollars ($25). Application forms should be completed and returned to the school by Friday, March 23, 2018.

For further information, please call telephone number: 394-4481/394-4484.

to crack down on, and compliance with anti-BEPS measures is one of the three ‘criteria’ it is using when judging whether to ‘blacklist’ countries.

Tribune Business previously reported that BEPS compliance had created both uncertainty and concern within the Bahamian financial services, given that it seemed to require that this nation implement a corporate income tax.

The four standards that the Bahamas selected to meet the minimum BEPS requirement are: (Action

5): Countering Harmful Tax Practices; (Action 6): Treaty Shopping; (Action 13) Transfer Pricing Documentation and Country-by-Country Reporting; and (Action 14) Dispute Resolution.

Financial services industry sources told Tribune Business that compliance with Action 5 was especially problematic for the Bahamas The OECD considers a corporate tax rate of 10 per cent or less to be a ‘harmful tax practice’, but the Bahamas - with no income

taxes of any kind - has an effective corporate tax rate

of ‘zero’ because it simply does not have this system.

NOTICE

Notice is hereby given that BGRS Certificate No. 50014 in the amount of $500.00 is lost and was due to mature 2017. If this Certificate is found, please write to P.O. Box SS-5917 Nassau, Bahamas.

PAGE 8, Monday, March 12, 2018

THE TRIBUNE

Reputable and Growing Gaming Company, accepting resumes for

Chief Product & Project Officer RBC Royal Bank has a vacancy for:

Essential Duties & Functions: (Includes but not limited to)

PRIVATE BANKER What is the opportunity?

Private Banking and Investments Unit is looking for someone who has the desire and ability to manage and grow the Private Banking portfolio of High Volume (HV) clients through a personalized and confidential approach that is geared to meeting the clients’ financial needs. You will be required to collaborate with various internal partners in the delivery of a customized holistic approach to your HV clients.

What will you do?

• Build, retain and deepen client relationships while delivering an exceptional client experience to high value clients.

• Assist with building on and executing client strategies and action plans including proactive contact & follow-up strategy using sales advice & planning tools.

• Delivery of Financial Literacy for clients and their family members.

• Proactively monitor client affairs and identify product and solution opportunities for both business and personal needs in order to leverage the expertise of the RBC Financial Group.

• Support high quality credit book through strong client selection, thorough financial discovery, regular updating of financial position and client information, proactive identification and management of deteriorating and weak accounts.

What do you need to succeed?

Must-have • University Degree or equivalent education • 5 years of progressive experience in Personal/ Commercial Banking, preferably in a Relationship Management role • Sound knowledge of all Banking Operations, Sales Routines and Products/Services • Strong organizational skills and business orientation • Broad and/or deep understanding of the various products available across RBC group to support client advice and partnering • Strong strategic thinker • Excellent presentation skills • Very strong written and oral communication skills ® Registered trademark of Royal Bank of Canada. Used under licence.

• •

High achievement orientation / results driven Strong customer service and sales skills

Nice-to-have • Financial Planning designation or equivalent certification in Financial Planning.

• Previous successful sales experience in a financial industry • Experience in creating a referral network or possesses a current extensive network of centres of influence What’s in it for you?

• We thrive on the challenge to be our best, progressive thinking to keep growing, and working together to deliver trusted advice to help our clients thrive and communities prosper. We care about each other, reaching our potential, making a difference to our communities, and achieving success that is mutual.

• A comprehensive Total Rewards Program including competitive compensation, bonuses, and flexible benefits • Continued opportunities for career advancement • World-class sales training, coaching, and development opportunities • Support from a dynamic, collaborative, progressive, and high performing team, as well as world-class tools and training • Opportunity to achieve great success and grow your career with RBC

Interested applicants should apply by Friday, March 16, 2018 at jobs.rbc.com Unsuitable applications will not be acknowledged

TO ADVERTISE TODAY IN THE TRIBUNE - THE NO.1 NEWSPAPER IN CIRCULATION - JUST CALL GODFREY ARTHUR @ 502-2394 Reputable and Growing Gaming Company, accepting resumes for

Chief Marketing Officer

Essential Duties & Functions: (Includes but not limited to) • Improving the marketing systems, processes and policies in support of the mission and vision of the organization • Oversee the planning, development and execution of the organization’s marketing and advertising initiatives • Facilitate growth, sales and marketing strategies • Oversee the company’s market research, community relations and customer service operations locally and for the family islands • Review market trends and direct the market research efforts of the company • Build brand awareness and ensure all communications align with the company’s brand • Develop strategic goals related to social media metrics, television advertising and marketing campaign initiatives • Analyze current marketing strategies and implement changes • Plan and organize marketing functions and operations as it relates to product development, branding and communication • Provide detail reports and competitive analysis as it relates to market trends • Define marketing strategies to support the company’s overall strategies and objectives • Develop feasible marketing plan for the company and ensure its implementation • Design and coordinate promotional campaigns, public relations and other marketing efforts • Provide support in the design and production of visual marketing tools • Oversee monitoring of marketing and sales reports and communicate with industry experts as well as recommendations for improvement • Ensure key performance indicators are in place and marketing goals are met and measured • Drives daily execution and enhancement of the company’s overall marketing strategy • Lead a team of employees and ensure they produce the outputs required of the department

Interested candidates are required to possess the following managerial skills and qualifications: • • • • • • • • • • •

Bachelor’s Degree or higher in Marketing & Communication 10 years or more proven experience as chief marketing officer Demonstrated experience in developing efficient strategies and business plans for all marketing aspects Working knowledge of budgets, forecasting and metrics Knowledge of marketing principles and best practices Proven creative and analytical capabilities Results driven, customer focused and excellent organizations skills Excellent communication skills both verbal and written Strong research and benchmarking skills Strong critical thinking and problem solving skills Experience in process improvement and strategic planning and data analysis methods

Interested qualified candidates may submit their resume via email to info@242careers.com.

Deadline for submissions – May 19th, 2017 Only successful candidates will be contacted.

• Oversee and plan production management systems and processes and direct business strategy.

• Establish methodologies and procedures for conducting research, design conceptualization, phototyping and product development • Responsible for identifying potential products and conducting market research; generating product requirements and time integrated plans for product introduction • Develop strategic plans and delivery across technology, product, marketing and operations • Oversee the company’s market research as it relates to production development • Oversee and manage Company projects and initiatives that drive the goals of the business • Assess the nature and scope of the present and future product lines and review products specifications • Analyze product requirements and product development • Manage all production projects of the company and provide measureable results • Ensue quality controls standards are implemented and achieved • Assist with product training and develop strategies and tools to strengthen processes and satisfaction

• Introduce and market new products by developing time-integrated plans with sales, advertising, and production • Asses market competition and provide source data for product line

• Plan and organize production schedules • Build development team and ensure key performance indicators are in place and production targets are met • Evaluate the business and develop project goals, advise and implement strategies • Oversee performance of various product analyses, identifying gaps and recommend strategies to establish product differentiation

Interested candidates are required to possess the following managerial skills and qualifications: • • • • • • • •

Bachelor’s Degree or higher in Marketing & Communications 10 years or more proven experience in product & project management Experience in product development, requirement analysis, pricing and competitive analysis Excellent interpersonal skills and communication skills both verbal and written Strong analytical and problem solving skills A demonstrated commitment to high professional ethical standards and a diverse workplace Results driven, customer focused and excellent organizational & management skills Excellent knowledge of information technology with a good understanding of all MS Office applications and project & product management programs

Interested qualified candidates may submit their resume via email to info@242careers.com.

Deadline for submissions – May 19th, 2017 Only successful candidates will be contacted.

PAGE 10, Monday, March 12, 2018

THE TRIBUNE

Bahamas in last-ditch bid to avoid ‘blacklist’ FROM PAGE 1 playing field” without targeting another country’s tax base. “We are moving with alacrity,” Mr Bethel told Tribune Business.

“A delegation of ministers, led by the Deputy Prime Minister and minister of financial services, is heading to Europe to engage in face-to-face meetings.

“I summoned my people here on Saturday. I’m now competing a draft Bill to capture the immediate concerns of the Europeans with regard to the effective implementation of the BEPS initiative, meaning

the booked profits and losses of non-resident companies that may be resident in the jurisdiction will have to be subject to country-bycountry reporting.

“This is particularly when these entities are constituent members of multinationals earning over and and above more than several hundred million dollars in terms of consolidated annual profits.”

Mr Turnquest, in his statement on Friday, said the proposed EU ‘blacklisting’ stemmed from concerns the Bahamas has not done enough to prevent its financial products and structures from being

used by multinational companies and others for tax avoidance.

The legislation worked up by the Attorney General’s Office directly targets Europe’s fears, as it proposes to impose financial reporting requirements that will mandate Bahamas-based subsidiaries of multinationals to show the profits and losses earned in different countries.

These requirements will only apply to Bahamian affiliates of multinationals whose earnings are above a certain threshold, but those that do will become “a reportable entity” that must demonstrate to the

Bahamas’ ‘Competent Authority’ - the Minister of Finance - that it is engaged in country-by-country reporting.

Mr Bethel told Tribune Business: “We have just finished finalising a first draft of what we think is a very good Bill to address this issue, and put the Bahamas in a very good position to comply with BEPS. “The main thing right now in terms of BEPS is multinationals, and the way they book profits and losses in corporate vehicles around the globe, using financial structures to put themselves in the best possible position in their home jurisdiction.

“I think the Bill we have is very serviceable. We think the Bill accommodates satisfactorily the requirements set out in the [BEPS] criteria.... We have addressed that issue with our eyes firmly fixed on BEPS criteria 2.2.” This deals with the use of products/structures that book business worth multi-million dollar sums in jurisdictions where companies have no physical presence, or conduct no substantive activity.

The threatened ‘blacklisting’ of the Bahamas is tied directly to the OECD’s BEPS initiative, as compliance with the latter is one of three criteria being employed by the EU to determine whether a country is co-operative in the fight against tax avoidance.

At its simplest, BEPS aims to ensure that the profits of multinational companies are taxed in the country where they are generated.

Multinational companies often use legitimate tax avoidance strategies to “exploit gaps and mismatches” between different countries’ tax rates and rules, and “artificially shift profits” to low or ‘no tax’ jurisdictions despite conducting no or minimal business there. This enables them to minimise their tax exposure by paying a lower rate than they otherwise would in countries where they do conduct business.

The Bahamas has elected to meet the minimum BEPS

MARKET REPORT THURSDAY, 8 MARCH 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,038.79 | CHG -0.01 | %CHG 0.00 | YTD -24.78 | YTD% -1.20 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.76 1.64 0.18 4.60 8.70 6.30 5.30 11.87 2.59 1.56 8.21 6.10 10.55 10.90 4.50 12.51 11.00

52WK LOW 3.50 17.43 8.19 3.32 0.90 0.12 3.50 8.40 6.00 3.15 9.00 2.18 1.40 7.70 5.83 8.78 5.67 3.35 12.01 10.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Premier Real Estate

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ PRE

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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 2.13 4.14 1.99 178.69 153.40 1.54 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 1.48 1.62 1.57 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.60 8.70 6.10 4.64 9.87 2.59 1.50 7.75 6.10 10.10 6.40 4.47 12.51 10.00

CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.60 8.70 6.10 4.64 9.87 2.62 1.50 7.70 6.10 10.10 6.40 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 0.03 0.00 -0.05 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

109.50 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.06 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

109.44 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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 Royal Fidelity Int'l Fund - High Yield Fund Strategies Fund

VOLUME

2,873

174,400

1,000 1,150 129,414

VOLUME

EPS$ 0.475 0.932 -0.306 0.281 -1.133 0.000 -1.462 0.638 0.583 0.171 0.631 0.102 0.330 0.000 1.129 0.743 0.484 0.298 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.690 0.060 0.050 0.083 0.300 0.500 0.150 0.120 0.570 0.000

P/E 8.2 18.7 N/M 11.9 N/M N/M -2.5 13.6 10.5 27.1 15.6 25.7 4.5 N/M 5.4 13.6 13.2 15.0 23.0 0.0

YIELD 2.05% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.68% 3.61% 2.59% 6.99% 2.29% 3.33% 1.08% 4.92% 4.95% 2.34% 2.68% 4.56% 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% 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%

NAV 2.13 4.12 1.99 178.69 153.40 1.54 1.69 1.62 1.09 7.16 8.40 6.29 11.28 11.60 10.21

YTD% 12 MTH% 0.31% 4.30% 0.16% 5.93% 0.17% 2.36% 4.66% 3.89% 5.58% 6.65% 0.36% 4.29% -0.15% 3.50% 0.23% 3.89% -0.34% 4.66% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

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

4 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

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

MATURITY 31-May-2018 19-Oct-2022 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 NAV Date 31-Jan-2018 31-Jan-2018 26-Jan-2018 31-Dec-2017 31-Dec-2017 31-Jan-2018 31-Jan-2018 31-Jan-2018 31-Jan-2018 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017

requirement by complying with four standards: (Action 5): Countering Harmful Tax Practices; (Action 6): Treaty Shopping; (Action 13) Transfer Pricing Documentation and Country-by-Country Reporting; and (Action 14) Dispute Resolution.

Yet financial services industry sources told Tribune Business that compliance with Action 5 was especially problematic for the Bahamas. This is because the OECD considers a corporate tax rate of 10 per cent or less to be a ‘harmful tax practice’, but the Bahamas - with no income taxes of any kind has an effective corporate tax rate of ‘zero’ because it simply does not have this system.

Therein lies the problem for the Bahamas in meeting both OECD and EU demands, and many observers believe the latter - in particular - is seeking to force this nation to implement a corporate income tax.

The recommendation to include the Bahamas, together with the US Virgin Islands and St Kitts and Nevis, on the EU ‘blacklist’ was leaked last week to the Reuters news agency.

Bahamian financial services industry, speaking on condition of anonymity, told Tribune Business they viewed this as a ‘deliberate act’ by the EU in a bid to further ratchet up the pressure on this nation, force it into a corner and ‘bounce’ it into meeting more demands.

“They’ll probably have their corporate tax in the next three years; maybe two,” one source told this newspaper of the EU. “It is the extent of change, not just the pace of change, that is being rapidly accelerated.

They know the Bahamas is going to say: ‘What do you want us to do to beat off this blacklist on Tuesday?’”

The source added that the Bahamas’ commitment to the OECD to comply with BEPS “arguably” requires implementation by end-2019, which is the same timeline for when this nation is supposed to accede to full membership in the World Trade Organisation (WTO).

Mr Bethel, though, said he was “loathe to ascribe” hidden agendas or ulterior motives to any party.

“When the Bahamas gives its commitment we live up to it, and have every intention of living up to it” he told Tribune Business.

“It’s a question of our own integrity when we say we’re going to do it. No one has to put a gun to our head. All I can say is that we are demonstrating our good faith. We’ll see what the end result will be. I can only speak to and say what

we as a government are doing. We are showing our good faith, and we trust and hope we’ll receive the same consideration.”

Mr Bethel then revealed that “a series of miscommunications” by both the Bahamas and EU had exposed this nation to the threatened ‘blacklisting’, although he did not fully explain what these were.

“It’s a series of miscommunications that put us in this position,” he disclosed.

“A series of miscommunications on both sides. Now we’ve got the full picture we will respond to it forthwith.

Nobody was attempting to swing anybody.

“It was a miscommunication on timing and the details of implementation that were not forthcoming until [Friday]. I think we’re going to be well on our way to showing the seriousness of our commitment, and that when we give a commitment we live up to it.

“A large part of the threatened ‘blacklisting’ was a failure of communication; them or us not asking the right questions, and for them to set out fully the details of the initiative. We knew the criteria, but only got the implementation notes then.”

Mr Bethel’s comments likely refer to the EU’s original ‘blacklisting’ announcement in early December 2017, when it placed the Bahamas in an eight-nation grouping, along with the likes of the British Virgin Islands (BVI), Dominica and Turks & Caicos, that would be given a further 12 months to meet its demands for “fairer taxation”, transparency and compliance with the fight against tax avoidance by multinational companies.

The EU said it had suspended “the screening process” for the Bahamas and other seven, due to the impact of Hurricane Irma, but warned that the process would resume in February 2018 “with a view to resolving these concerns by the end of” the year.

“I will only say this,” Mr Bethel told Tribune Business. “That the Commonwealth of the Bahamas is intent on living up to its commitments to be a responsible member of the international community, and to do all that is necessary to defend the integrity and right to compete of our financial services sector on a level playing field with the rest of the world.

“Not to come with any untoward advantage that targets people’s tax bases, but to compete on quality, timeliness and efficiency of services we offer to the world. On those grounds we can compete, and we can win. We will press on regardless.”

VACANCY Applications are invited for the position of Corporate Administrator Applicants must have: • At least five years’ experience in corporate administration including a thorough knowledge of the incorporation, maintenance & liquidation of companies, preparation of annual returns, corporate resolutions, notices and other corporate documents; • Updating and maintaining the

corporate system; • General secretarial duties; • Computer literacy, including

advanced proficiency in the use of Microsoft Applications, Viewpoint

and CP or other similar time and billing software; • Sound organisational skills and the

ability to consistently produce high

quality work under pressure, to use

initiative, work as a team player and be able to work overtime at short notice.

Qualified candidates may apply in confidence no later than March 16, 2018 to: corpvacancy1@gmail.com

THE TRIBUNE

Monday, March 12, 2018, PAGE 11

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