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DPM slams ‘unfounded’ corporate taxation fears

Bahamas facing ‘hard choices’ on $710m storm woe

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

he Deputy Prime Minister has slammed as “very much unfounded” fears that the Government will be able to introduce corporate taxation with little to no warning.

K P Turnquest, responding to growing concerns over the proposed legislative response to the Bahamas’ ‘blacklisting’, told Tribune Business that no Minister of Finance “could or would” implement such a fundamental reform without first undertaking widespread consultation and analysis.

He emphasised that the Minnis administration had taken no decision on whether to introduce corporate taxation, and was “not planning any kind of

* ‘No significant’ tax reform in short-term * But concedes some fall-out ‘self-inflicted’ * AG’s comments ‘opened can of worms’ * Indicates existing IBC ‘grandfathering’ significant” tax reform in the short-term, even though the Multinational Entities Financial Reporting Bill paves the way for such a levy to be imposed on key Bahamian financial services products.

Mr Turnquest said the Bill was designed to merely provide flexibility, enabling the Government to introduce corporate taxation if it so chose, and he accused the Government’s critics of “making leaps” and “taking licence” over its wording.

However, the Deputy Prime Minister admitted the negative private sector

DPM K P TURNQUEST reaction and subsequent fall-out was partially “selfinflicted”. In particular, he

said comments on the Bill and its contents by Carl Bethel QC, the Attorney General, had “opened a can of worms”.

Disclosing that the European Union (EU) had never demanded that the Bahamas introduce corporate taxation to be removed from its ‘blacklist’, Mr Turnquest said tax reform would “never be driven” by foreign pressures.

And, while conceding that a ‘grandfather’ provision is necessary to protect the 20-year tax

SEE PAGE 6

THE Bahamas has been warned that “the era of tough choices has arrived” after Hurricanes Matthew and Irma caused a combined $710 million in economic damages and loss.

The Inter-American Development Bank (IDB), in two separate 100-plus page reports on the devastation inflicted by the two storms, warned that this nation needs to move now on relocating coastal communities and investing in infrastructure able to withstand disaster and climate change risk.

Breaking down the impact from the two most recent storms, the IDB’s just-released reports revealed that Matthew - which struck the two

* IDB URGES ‘FAST-TRACK’ RELOCATIONS * WITH INCENTIVES AND CROWN LAND * MATTHEW, IRMA BILLS AT $580M AND $129M most-populated islands of New Providence and Grand Bahama in October 2016 inflicted a combined $580 million in physical damage, revenue and other economic losses, and clean-up costs.

And Hurricane Irma, even though it largely spared the main population centres, caused an estimated $129.4 million in

SEE PAGE 5

NEW AUTO DEALERS: ‘IF YOU CAN’T BEAT THEM, JOIN THEM’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN auto dealers are adopting an “if you can’t beat them, join them” approach after new vehicle sales declined by almost 25 per cent for the first two months in 2018.

Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business that his dealership was increasingly focusing on used car sales and other initiatives in response to changed buying habits.

He added that the International Monetary Fund’s (IMF)

assessment that the Bahamian economy has “turned the corner” was not being experienced by the auto industry, where sales were down 24.11 per cent for JanuaryFebruary 2018 compared to the same period last year.

“By and large, whatever the IMF is saying is not reflected in our industry,” Mr Albury said.

“It’s going to be a while yet. The new car industry has changed considerably. Consumer buying habits are focused on these used, and they’ve found pretty good value on those and have shifted to those.

“With the new car industry there’s going to have to be changes happening to the way

* New auto sales off almost 25% * Industry ‘not reflecting’ IMF optimism * Used car switch to rival ‘Joe Blow’ we do business to attract customers in. What we’re doing now is five-year warranties on new vehicles, better financing deals with the banks, focusing a lot on leasing programmes and commercial vehicles. A lot of reputable business places don’t want used vehicles; they want to buy new ones.”

Rick Lowe, the BMDA’s secretary, told Tribune Business that March was “slow” following

the weak start to 2018. He expressed concern that taxationrelated uncertainty, connected to the Government’s response to the European Union’s (EU) ‘blacklisting’, might further slow the economy and have negative consequences for auto dealers.

“There does not appear to be a correlation between the IMF prognosis that the economy has turned the corner and new car sales,” Mr Lowe told Tribune

Business. “With the discussion of new taxes surfacing this could have a further negative impact on our industry.” He again called for the Government to reevaluate price controls on the industry.

Mr Albury, meanwhile, said his Auto Mall business had begun to increasingly focus on the used car market in a belief that a major consumer segment would prefer to buy from established companies rather than “Joe Blow dealer” at the roadside.

“If you can’t beat them, join them,” he told Tribune Business.

“We’ve been bringing in used cars as well. People feel more

SEE PAGE 4

QC backs income taxes Small Budget surplus to ease ‘rich/poor divide’ achieved for January

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN outspoken QC is backing the introduction of corporate and personal income taxes as a way to reduce “the gulf between rich and poor” in the Bahamas.

Fred Smith QC, the Callenders & Co attorney and partner, has added his voice to those urging the Government to use the European Union’s (EU) ‘blacklisting’ as a means to undertake wider reforms leading to “a more progressive and equitable” tax structure.

He told Tribune Business it was especially “ironic” that foreign investors and developers were able to repatriate their Bahamiangenerated profits 100 per cent tax-free at a time when the Public Treasury needed

* ECONOMY ‘VERY SKEWED’ ON WEALTH HOLDINGS * USE EU TO SHIFT FROM REGRESSIVE TAX MODEL * ‘PERVERSE’ INVESTOR PROFITS TAXED ELSEWHERE every cent of revenue it could earn.

And, with exchange control and other restrictions inhibiting the ambitions of many Bahamian entrepreneurs, Mr Smith said wealth was becoming increasingly concentrated “in a small black and white oligarchy” as the divide between themselves and others grew.

SEE PAGE 7

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government appears to have posted a small $7 million Budget surplus for January, with the deficit for the first seven months of 2017-2018 pegged at $191.3 million - a 39 per cent drop.

The Central Bank of the Bahamas’ economic report for February thus suggests that the year-to-date deficit has narrowed slightly from the $198 million referred to in the Deputy Prime Minister’s mid-year Budget presentation, although it is unclear whether its accounting basis and figures are the same as those used by the Government.

The Central Bank, which tends to employ ‘cash accounting’, said: “Data on the Government’s

* YEAR-TO-DATE DEFICIT FALLS TO $191.3 * TOURISM ‘REBOUNDS’ AFTER TOUGH 2017 budgetary operations for the seven months of fiscal year 2017-2018 revealed a $123.4 million (39.2 per cent) reduction in the deficit to $191.3 million, compared to the corresponding period of fiscal year 2016-2017.

“This outcome reflected a $102.4 million (7.6 per cent) contraction in total expenditure to $1.251 billion, along with a $21 million (2 per cent) expansion in aggregate revenue to $1.060 billion.”

The deficit comparatives are up against weak ‘year before’ figures that

SEE PAGE 4

THE TRIBUNE

Tuesday, April 3, 2018, PAGE 3

Andros plaza blaze puts 21 out of work

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

* DESTRUCTION HIGHLIGHTS NEED FOR FIRE ENGINE ON ISLAND

A FIRE that completely destroyed the Butler’s Plaza in San Andros has left the community “devastated” and in “shock”, with 21 persons out of work as a result.

“This is horrific,” said Ambika Cooper, a director with the Andros Chamber of Commerce.

“I was devastated; a lot of people are devastated.

There are now about 21 people out of work and that’s really tough. This was a very popular spot. It was a very modern plaza; not your regular ‘Mom and Pop’ type outfit. All of the stores in there were like the stores in Nassau.”

A fire gutted the plaza last Tuesday night, destroying The Flying Dutchman

Liquor Store; an Aliv store; Chances web shop; Bulter’s Laundromat; and the Sweet Mahogany Lounge.

“The Flying Dutchman was a popular hang-out and the washhouse was state-of-the-art. The Aliv store just opened back in November. The plaza didn’t have a Family Island vibe.

This is a shock to the entire

community, and it highlighted the need to have a fire engine on the island.

We have lacked one for many years.

“If there was a fire engine it could have at least saved half of the building,” said Ms Cooper. She added that the property had been renovated in the past two to three years.

Aliv, in a statement, acknowledged its store had been destroyed in the blaze.

“Due to unfortunate and unforeseen circumstance, there was a fire in the Butlers Plaza, San Andros, early Wednesday morning which has affected the entire plaza, including our store,” it said. “Due to this, our store will be closed until

further notice. We will be providing an update shortly and we stand in solidarity with the other tenants and the plaza’s owner.”

The company added: “At this time, we are working with the authorities and hope to resume operations soon. Our mobile van, which was kept in a separate location, will be available for patrons and parked as close to the original store location beginning at 10am. Thank you for your continued support.”

National Trust defends Exuma anchorage fees

TAXI UNION PRESIDENT: PLATE LEASING TO STAY

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

BAHAMIAN taxi drivers continue to face competition from hotels providing ground transportation to their guests off-property, their union president is alleging.

“You still have hotels who are operating in the ground transportation sector, taking guests back and forth in vehicles with just a private plate,” said Bahamas Taxicab Union (BTU) president, Phillip Watkins.

“That is something the union has been battling for years. Evidently something must be written in these Heads of Agreement contrary to the Road Traffic Act. These persons think that they can bring a vehicle in, hire a driver and and take fares that really should be for taxi drivers.

That is a battle we continue to fight. That’s an issue we continue to face.”

THE Bahamas National Trust (BNT) yesterday said the recent adjustment in anchorage fees at the Exuma Cays Land and Sea Park (ECLSP) was necessary to help maintain the park in the face of annual financial shortfalls.

The Park costs $500,000 per annum to run, and the BNT in a statement acknowledged concerns by some boaters over the recently adjusted anchorage policy that went into effect on March 1.

Under the new fee structure, vessels under 90 feet will be charged $0.50 per foot, and vessels over this benchmark will be charged $1 per foot.

“The operations of the Exuma Park have changed much over its more than half-a-century of existence, and today the park is

a very different place,” the BNT said. “Use of the park has increased exponentially, and today there is tremendous pressure on the park’ precious natural resources.

“The changes have accelerated over the past two decades, and the matter of insufficient funding to manage ECLSP had to be addressed for the financial wellbeing, and to help ensure the future of this historic land and sea park.”

The BNT added: “The financial resources required to maintain the park, and it’s unique biodiversity and relatively intact ecosystems, increases every year. Effective management of this special space requires increased staff capacity, moorings, patrol and maintenance, more vessels and improved communications and infrastructure. Even with the streamlining of expenses at the park, today it still costs nearly half a million dollars annually to run the ECLSP, and each year

the park faces a financial income shortfall.”

The BNT said the decision to introduce anchorage fees was one of the solutions identified in BNT’s sustainable financial plan to help effectively manage the Marine Protected Areas (MPAs).

“We must design and operate them like any other successful business venture by factoring in financial sustainability from the beginning,” it added.

The BNT said users of the ECLSP include cruising yachts, day tours, scientists, researchers, academics, filmmakers, non-governmental organisations and citizen science programme groups.

It is currently finalising a plan that will allow mooring and anchoring fees to be paid on a weekly, monthly, bi-annual and annual basis. This system will offer discount options as compared to the daily rate.

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

Mr Watkins also suggested that the long-standing practice of leasing taxi plates may be here to stay, even though the Minnis administration has indicated it is eyeing regulations to manage the issuance of taxi plates.

Anthony Newbold, the Prime Minister’s press secretary, previously indicated that the Government was also looking to move away from leasing taxi plates. But Mr Watkins told Tribune Business: “The leasing of plates has been with us forever. We don’t want to play with words, but we are trying to move away from the term lease.”

Mr Watkins added that drivers who retired or were no longer able to operate their cabs would lease their plates to another driver, or offer their plate to a younger driver who would in turn receive revenue. “That is a practice that continues today and will happen for a long time to come,” he added.

PAGE 4, Tuesday, April 3, 2018

THE TRIBUNE

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impacted by Hurricane Matthew’s aftermath, although they do not yet reflect the pre-election spending spree and commitments embarked upon by the former Christie administration. The Central Bank’s numbers also reveal that the year-overyear spending reduction was achieved largely by cuts in the Government’s capital Budget, as previously noted

by K P Turnquest, which is much easier to accomplish than eating into fixed costs such as the $753 million civil service wage bill not to mention accompanying benefits.

“The expenditure outcome was dominated by a $92.3 million (53 per cent) reduction in capital outlays to $82 million,” the Central Bank said, “led by a halving in infrastructure spending to $68.2 million, following a hurricane rebuilding-related expansion in the prior year, while asset acquisitions narrowed by $22.2 million (61.7 per cent) to $13.8 million.

“Similarly, current expenditure decreased by $9.9 million (0.8 per cent) to $1.17 billion, due mainly to a reduction in transfer payments by $35 million (6 per cent) to $545.9 million. In particular, subsidies and other transfers decreased by $42.9 million (10.4 per cent), owing mainly to a $36.8 million (18.1 per cent) decline in healthcarerelated subsidies.”

The Government has itself acknowledged that continued cuts to its capital budget cannot be sustained, as it deprives much-needed infrastructure upgrades of cash and restricts projects that create long-term value for the Bahamian people.

“Interest payments firmed by $7.9 million (4.7 per cent), amid gains in both internal and external repayment obligations,” the Central Bank added of the Government’s ongoing fiscal pressures. “Further, consumption spending rose

by $25 million (4.2 per cent) to $623.6 million, with personal emoluments higher by $23.2 million (5.7 per cent).

“The growth in aggregate revenue was led by an $11 million (10.4 per cent) increase in non-tax receipts to $116.2 million, as proceeds from fines, forfeitures and administration fees rose by $11.5 million (14 per cent).

“Similarly, tax revenue expanded by $10 million (1.1 per cent) to $943.9 million, reflecting a $21.4 million (10.6 per cent) advance in ‘other miscellaneous’ taxes, inclusive of a $6.6 million (58.7 per cent) increase in motor vehicle tax inflows,” the report continued.

“Further, Value-Added Tax (VAT) receipts grew by $8.4 million (2.2 per cent) to $382.2 million, while the $2.3 million (15.6 per cent) gain in selective taxes on services to $16.9 million, was buoyed by a $3.4 million (25 per cent) uptick in gaming tax receipts. In contrast, timing-related factors led to business and professional fee receipts decreasing by $16.2 million (36.8 per cent) to $27.8 million, while taxes on international trade contracted by $5.8 million (1.9 per cent) to $293.9 million, due to reduced collections on import duties.”

As for the real economy, the Central Bank said early 2018 tourism numbers suggested “a rebound in activity” following “a challenging 2017”, as Baha Mar’s opening and the return of refurbished inventory at Atlantis, the RIU and Warwick buoyed the resort sector.

“Of particular note was the strengthening in onshore activity in New Providence and the Family Islands,” the Central Bank said. “Preliminary data from the Ministry of Tourism showed that visitor arrivals to the Bahamas firmed by 5 per cent to 0.5 million in January, vis-à-vis a 4.7 per cent contraction during the comparable

period of the prior year.

“This reversal reflected gains in both air and sea visitors by 7 per cent and 4.6 per cent, relative to reductions of 1.6 per cent and 5.3 per cent, respectively, in 2017. In terms of the major markets, traffic to Grand Bahama strengthened by 44 per cent in January, a reversal from a 28 per cent decline in the prior year.

“This was due to a 52.4 per cent expansion in sea visitors, amid higher passenger volumes from two major cruise lines, overturning the 25.6 per cent reduction in 2017.

However weakness persisted in the onshore market with a further 18.2 per cent decrease in air arrivals relative to a 41.9 per cent contraction in 2017,” the report continued.

“In New Providence, growth slowed by 2.4 percentage points to 1.6 per cent, as the dominant sea segment fell by 0.3 per cent, a reversal from last year’s 5.5 per cent gain. Nevertheless, the high value-added air component advanced by 7.9 per cent, vis-à-vis a 0.6 per cent softening in the prior year.

“Further, Family Island arrivals decreased by 1.4 per cent following a 9.7 per cent contraction a year earlier, as sea traffic fell by 3.1 per cent after a 12.8 per cent reduction in the prior period. However, air arrivals expanded by 11.8 per cent, following a 23.8 per cent increase in 2017.”

The Central Bank added that initial data from the Nassau Airport Development Company (NAD) showed an 11.2 per cent rise in visitor departures compared to an 8.4 per cent reduction in the same period in 2017.

“Gains were recorded for both US and non-US passenger departures of 9.6 per cent and 18.4 per cent, in contrast to respective declines of 9.2 per cent and 4.5 per cent recorded in the prior year,” it said of NAD’s figures.

NEW AUTO DEALERS: ‘IF YOU CAN’T BEAT THEM, JOIN THEM’ FROM PAGE 1 comfortable buying vehicles from a reputable dealer than ‘Joe Blow’ dealer.

They don’t mind paying a few dollars more.”

The BMDA chief then returned to his oft-repeated call for the authorities to crack down on the

numerous roadside auto vendors, arguing that they were exploiting a skewed ‘playing field’ by not having to pay any of the Business Licence fees, VAT, real property taxes, NIB contributions and other levies incurred by established dealers with physical premises.

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Mr Albury said the impact was not confined to new car dealers and the Public Treasury, telling Tribune Business that used car companies with a physical presence were also “hurting badly” as a result of the explosive growth in roadside vendors.

“They’ve even saying they might close their doors and get out of this because they can’t compete with the guy selling on the side of the road,” the BMDA chief added.

“I don’t know how the Government is going to make it collecting $600-$700 on these cheap cars coming in, when they have to pave the roads, pay the police and pay for the ambulances to take people to hospital. “People have to realise they have to pay taxes to get the services they want.

It’s the crackdown on roadside vendors that will give legitimate business houses an opportunity to do better.

I’m not holding my breath.

There’s a lot of laws on the books but nobody has the balls to enforce them out there.”

Bahamian new auto sales have dropped by almost two-thirds since they peaked in 2007, as recession-battered consumers switched to lower-priced used vehicles in an economic environment marked by uncertainty, reduced incomes and lower growth.

The early 2018 slump follows a disappointing 2017 second half, which included a 31.17 per cent third quarter sales decline that wiped out the 6.7 per cent increase enjoyed in the 2017 first half. It, in effect, continues a sales decline that has now lasted for more than a decade.

“March started out really slow following the end of February,” Mr Albury told Tribune Business. “Then we had a bit of a pick up out there. What we’re finding is that high-end product, BMWs, Lexus and high-end Toyotas are doing well. The market has also shifted a lot from sedans to SUVs.”

THE TRIBUNE

Tuesday, April 3, 2018, PAGE 5

Bahamas facing ‘hard choices’ on $710m storm woe FROM PAGE 1 damages, economic losses and repair costs when it ripped through Ragged Island, Acklins and Inagua last September before curving northwards to affect Bimini and Grand Bahama.

“As a result of global warming and sea-level rise, the people of the Bahamas will face tough choices about relocating coastal populations and investing in infrastructure that will create resilience to the increased disaster risk and ongoing climate change,” the IDB’s Matthew assessment concluded.

“The damage wrought

by Hurricane Matthew’s storm surge to communities such as West End on Grand Bahama and Lowe Sound on Andros, or by Hurricane Joaquin to Lovely Bay on Acklins and Landrail Point on Crooked Island should stand as a warning that the era of these tough choices has already arrived.”

It added: “A child born in the Bahamas in 2016 will be 84 years old in the year 2100. In that lifespan, she can expect to see, by conservative projections, a rise in sea levels of two to three feet (60 to 90 cm) above where they are today.

Less conservative projections recognise that there is some risk of a substantially greater rise.

“This is the start of a very long-term trend in which continually increasing sea levels will affect the Bahamas for hundreds of year to come, potentially not ending until such time as the entire volumes of the Greenland and Antarctic ice sheets have been added to the water in the Earth’s oceans.

“By the time the rise in sea level reaches three feet (90 cm), the increase in water level will be enough to lap at the thresholds of houses in some of today’s

low-lying communities, and it will have already led to profound changes to the coastlines, topography, and bathymetry of the Bahamian archipelago,” the report continued.

“Natural coastal protections, including mangroves, barrier islands, beaches and reefs, will become eroded or further submerged, leading to increased risk of damage to sea-side infrastructure as a result of storm surge and wave action. “At the same time, the increase in water temperatures because of global warming is likely to contribute to a tendency for tropical cyclones to be, on average, stronger than they have been in the past.

Thus, large storms like Hurricanes Matthew and Joaquin can be expected to impact the islands with an increased frequency.”

Having illustrated the dire consequences if the Bahamas takes no action, the IDB report said the authorities needed to start immediately on educating inhabitants of low-lying coastal, communities on the need to relocate.

Emphasising that such a move could not simply be dictated or mandated by the Government, it suggested that “a fast-track programme” and incentives were needed to underpin such relocation, with the provision of Crown Land helping to minimise such costs.

The IDB assessment also warned against continued reinvestment, including the use of scarce taxpayer dollars, in rebuilding homes and infrastructure in areas deemed to be at ‘high risk’ from flooding and storm surges during hurricanes.

“Respect for human rights mandates that endangered communities cannot simply be removed by fiat of the authorities, but that a long-term process of consultation, planning,

consent-building, and incentivisation is necessary,” the report said.

“That said, continued and extensive public investment to rebuild destroyed housing and infrastructure in areas at high-risk is also not an appropriate response.

Rebuilding in high-risk areas should be limited to that which is necessary to maintain public safety, and the basic services to which residents are entitled.

Broad economic redevelopment should focus on sustainably-sited communities, and this can serve as an incentive to draw populations in at-risk areas to resettle on safer ground.

“For example, the Government is advised to create a fast-track programme and incentives for citizens who live on or near coastlines to relocate to Crown Land.

However, simply opening up new building sites is not in itself sufficient to draw populations away from atrisk areas,” the IDB study added.

“This has been demonstrated in the past when the Government opened up a new settlement area to entice relocation of citizens from Lowe Sound.

Ultimately, relatively few people moved to the new location, in part because it was not near the centre of economic activity. Perhaps more will move now, following the devastation wrought on the town by Hurricane Matthew, but there is a need for additional urban planning and economic development to make relocation a more inviting prospect to those remaining in harm’s way.”

Hurricane Matthew increased in intensity from a Category Three to a Category Four storm by the time it reached Grand Bahama, with that island accounting for almost 70 per cent of the damage and economic losses inflicted upon

the Bahamas. New Providence took the brunt of the remainder at some 23 per cent.

“Total hurricane damage, estimated at $373.9 million, accounted for almost twothirds of the storm’s total cost. Most damage was to the housing sector, and the tourism sector,” the IDB’s assessment said of Matthew.

“The productive sectors - tourism and fisheries - account for nearly $109.3 million of the total $145.5 million in income losses caused by the hurricane. Fisheries have the highest ratio of income loss to damage. For each dollar of hurricane damage, there was $25 of lost income in the fisheries sector.

“Of the $60.9 million in additional costs attributed to the hurricane, approximately 60 per cent - $36.3 million - was borne by the infrastructure sub-sectors - transportation, telecommunications, power, and water and sanitation. About 93 per cent of the additional costs in infrastructure occurred in the power ($23.6 million) and telecommunications ($10.3 million) sectors.”

As for Irma, the IDB report noted: “The estimated damage is $31.5 million; the losses, $86.5 million; and additional costs, $11.4 million.

“Hurricane Irma caused moderate damage throughout the country, particularly affecting the productive private sub-sectors of tourism and fisheries, as well as causing important environmental damage. Most of the

damage sustained resulted from excess rainfall, storm surge and flooding. It is estimated that the total damage is $31.5 million, of which 39.2 per cent is public and 60.8 per cent private.

“Losses... were sustained primarily in the private

sector, which accounted for 97 per cent of the total. The productive sector accounts for most of the losses, with 93.5 per cent. The infrastructure sector accounts for 4.3 per cent of the losses, followed by social (2.2 per cent).”

PAGE 6, Tuesday, April 3, 2018

THE TRIBUNE

DPM slams ‘unfounded’ corporate taxation fears FROM PAGE 1 exemptions enjoyed by existing International Business Companies (IBCs), he reiterated that the era of ‘ring fencing’ is over.

The Deputy Prime Minister was seeking to address fears, both in the financial services industry and wider private sector, that the Multinational Entities Financial Reporting Bill will give the Government virtually unchecked power to introduce corporate taxation - in the type, rate and structure of its choosing - at ‘the stroke of a pen’.

“I don’t think, despite what anyone might say, that any Minister of Finance, even if he could, would engage in a significant shift in the tax structure without proper consultation and consideration of all factors involved,” Mr Turnquest told Tribune Business.

“That would be very much an over-simplification of the process and considerations that have to go into making these types of decision..... Whoever is the Government, we are fully cognisant of the factors that go into these decisions, and we have to have wide consultation and acceptance by the private sector and public sector as to the affects and benefits derived from that.”

Mr Turnquest reiterated that it was “very much unfounded” to suggest the Multinational Entities Financial Reporting Bill opens the door to major tax reform with no warning, although many attorneys will likely question why the legislation does not specify

this and provide the necessary clarity.

For the Bill repeals and amends numerous financial services-related laws to allow for the introduction of corporate tax “of any nature” on International Business Companies (IBCs); Foundations; Executive Entities; Exempted Limited Partnerships; and Investment Condominiums (ICONs).

The amendments to the Acts for these products include a new section on taxation, which incorporates broadly the same language for each. Besides making all “resident or non-resident for exchange control purposes”, thereby addressing the EU’s ‘ring fencing’ concerns, the new language states the listed financial products will be “subject to such corporate taxation of any nature in respect of its resident or non-resident income, capital gains, shares, dividends, debt, obligations or securities, Business Licence, estate, inheritance or gift tax or other transactions related to such company as shall be prescribed by the Minister in regulations”.

To calm any fears, Mr Turnquest said the Government planned to issue a formal statement “to try and clarify what we’re doing versus what we’re not doing, and what this Bill intends to do and does not do”.

“People are taking licence because they have not read the Bill,” he told this newspaper. “People have been making leaps, and some of it is self-inflicted. We had the Attorney General talking about this, and it’s opened up a can of worms.”

Mr Bethel told Tribune Business last week that corporate taxation is on the way, although the Government has yet to determine what type. He added that this will be based upon advice received from its external consultants, the UK arm of the Deloitte & Touche accounting firm.

“In the Act, we give with respect to each entity the power for the Minister of Finance to prescribe any tax,” Mr Bethel said.

“We’re not specifying the type of taxation. That will be based on what the experts tell us. I wanted to give him complete flexibility.”

Mr Turnquest, meanwhile, took particular aim at Arinthia Komolafe, accusing her of “distorting the facts” and questioning whether she was speaking as a Democratic National Alliance (DNA) or Organisation for Responsible Governance (ORG) member in comments on the matter last week.

He described all discussion of corporate taxation as “premature”, given that the EU’s primary concerns with the Bahamas instead related to ‘economic substance’ and ‘ring fencing’.

“The reality is we have not decided we are going to do corporate taxation, and we’re not going to be driven to do corporate taxation by any outside agency,” Mr Turnquest said. “It’s not the impetus of that Bill. That’s not the idea. The Bill is dealing with profit shifting; it has nothing to do with taxation.

“We are looking at our tax structure. As I’ve said many times before, we’re looking at it overall and

how we could simplify it and make it more progressive. We have not decided what that looks like, because we have not completed the analysis.”

As a result, the Deputy Prime Minister argued that it was “premature” to be talking about corporate taxation or any other type of reform. “We’re not planning any kind of significant change in the short-term,” he reaffirmed.

“These things have implications. We have to consider how this thing affects other legislation, so it’s very premature to talk about the introduction of any corporate taxation.

The whole issue of the EU, and the listing with that, has nothing to do with it.

“They [the EU] have not said to us, in any suggestion or directly, that we need to implement corporate taxation to comply with their standard. They are interested in economic substance, and ensuring companies operating in the Bahamas have a substantial presence in the Bahamas, and are not just here as shell companies where profits can be stuck.”

The EU ‘blacklisted’ the Bahamas on the grounds that, in its eyes at least, this country had not done enough to prevent its corporate vehicles from being used by multinational companies for tax avoidance purposes.

In the absence of ‘economic substance’ requirements, the EU’s fear is that such companies could artificially shift profits and other taxable income earned elsewhere to the Bahamas, even though they have no physical

NOTICE

NOTICE

TABORA INVEST LTD.

ROSALI INVESTMENTS LTD.

NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Tabora Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 8th day of March, 2018.

NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Rosali Investments Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 15th day of March, 2018.

Dated the 28th March, 2018

Dated the 28th March, 2018

Beatus Limited Liquidator

Beatus Limited Liquidator

NOTICE

Legal Notice

TARABA A21 LTD. NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Taraba A21 Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 8th day of March, 2018.

Dated the 28th March, 2018 Beatus Limited Liquidator NOTICE HACOR INVEST LTD. NOTICE is hereby given that in accordance with the relevant provisions of the International Business Companies Act, 2000, Hacor Invest Ltd. has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 8th day of March A.D. 2018.

Dated the 28th March, 2018 Beatus Limited Liquidator

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

LYNTON CORPORATE HOLDINGS LIMITED In Voluntary liquidation

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). LYNTON CORPORATE HOLDINGS LIMITED, is in Dissolution.”

The date of commencement of dissolution is the 26th day of March, 2018.

Mr. Christoforos Panagis of 3 Thivon, Flat 302, 1056 Nicosia, Cyprus Liquidator

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

GALA CONSTRUCTION LTD In Voluntary liquidation

Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), GALA CONSTRUCTION LTD has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 7th day of March, 2018.

Mr. Tewi Fauster of 38 Ybbstrasse #13 Wien, 1020 Austria Liquidator

presence or economic activities in this jurisdiction.

The 28-nation bloc’s second concern is ‘ring fencing’, or the existence of a preferential tax regime for non-resident entities and foreign investors compared to the domestic economy.

The Multinational Entities Financial Reporting Bill’s efforts to address the latter issue have raised concerns that the distinction between IBCs and domestic companies is being virtually eliminated, with the repeal of the former’s 20-year tax exemptions causing particular concern.

Attorneys and financial services executives have warned of tremendous market upheaval if there is no transition or ‘grandfather’ clause to protect existing IBCs, which they say have a ‘legitimate’ right to expect the Bahamas will honour the 20-year exemption promise given that business strategies will have been based upon this.

While acknowledging the need for such protection, Mr Turnquest reiterated that the days of so-called ‘ring fencing’ were over.

“Whatever we do there has to be some kind of transition clause included, but the idea we can ‘ring fence’ certain classes of companies is not going to be viable going forward,” he told Tribune Business. “But we have to consider these kinds of transition issues for sure.”

Mr Turnquest said the Government had already received feedback on the Bill, and would “certainly take it into consideration”.

He conceded, though, that this requires “a balancing act” between any changes and not watering down the legislation’s intent and the Bahamas’ commitment to meeting the EU’s ‘criterion 2.2’ standard.

Promising that the Government would seek to maintain the country’s competitiveness, Mr Turnquest said meeting the EU’s ‘economic substance’ demands could ultimately generate greater economic benefits for the Bahamas.

“We have to make some structural adjustments to the ‘ease of doing business’, and our productivity, but once we do those things I think it will be an advantage for us,” the Deputy Prime Minister said.

“One of the things we’ve talked about as the EU pushes us to approach this ‘substance’ question is it could mean companies establish substantial offices here, do business from here and, using the rules, because the economic activity is from here, we can capture more of the tax revenue generated here, domicile it here and reduce the amount of tax owed to these states.

“It’s about economic substance and economic presence. To the extent companies do not have a substantial presence or do not wish to, it’s not a problem.

“Persons will just have to report income back to their home jurisdiction. It’s not a zero sum game. It’s a matter of how you want to structure your holdings.”

Mr Turnquest’s comments allude to the fact that only a small portion of the Bahamas’ IBC business, and other corporate vehicles, is likely to be affected by the Multinational Entities Financial Reporting Bill given that reporting/ notification requirements are only mandatory for those entities that are part of multinational company networks doing more than $850 million in consolidated annual turnovers.

Those vehicles used by private clients are likely to be relatively unscathed, and the Deputy Prime Minister added: “We’ll do our best to protect existing business as well as grow it, recognising the opportunities presented as a result of this paradigm.

“We give the assurance that whatever adjustments will be made in the business model will be reasonable, in accordance with international best practices, and we hope we cause as little disruption to business as possible.”

NOTICE

NOTICE is hereby given that ADNA DOLCE of Blueberry Hill, Nassau, 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 twentyeight days from the 26th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that SLAM AMONDIEU CHARLES of Palm Tree Avenue off Market Street, 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 3rd day of April, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that DIEUFAITE EUGENE of Treasure Cay, Abaco, 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 26th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

ANACONDA LIMITED In Voluntary Liquidation Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act 2000 (No. 45 of 2000) Anaconda Limited is in voluntary liquidation.

The date of the voluntary dissolution was 27th September, 2017; Articles of Dissolution were filed on the 16th March, 2018.

The Liquidator of the Company is Alan E. H. Bates of P. 0. Box N-63, Nassau. Bahamas.

Alan E. H. Bates Liquidator

THE TRIBUNE

Tuesday, April 3, 2018, PAGE 7

QC backs income taxes to ease ‘rich/poor divide’ FROM PAGE 1 “It is regrettable that the EU has blacklisted the Bahamas, but perhaps this will help to focus a conversation about whether or not there should be a drastic reform of taxation in the Bahamas,” Mr Smith said.

“I support income and corporate taxation. The gulf between the ‘haves’ and ‘have nots’ cannot be allowed to continue to expand in the Bahamas.

The Bahamas is a country with a vast amount of wealth which has been accumulated more and more in a small black and white oligarchy and foreign investors.

“This, coupled with exchange control restrictions, lack of access to Bahamians to the millions of US dollars in our local banks, and the general procrastination against Bahamians investing in foreign entities makes for a very skewed economy.”

Mr Smith added that it was “perverse” for foreign investors, developers and corporations to be taxed on their Bahamas’ profits and income in their home countries without being taxed here, suggesting the Public Treasury was missing out on a potentially lucrative revenue source at a time when the Government is severely cash-strapped.

“The fact none of the owners, foreign real estate developers, hoteliers or foreign individuals pay corporate or income tax means their profits are generally 100 per cent repatriated

abroad,” he told Tribune Business.

“All the developers in the Bahamas pay corporate or income tax in their home countries, which is why it is perverse that the Bahamas does not capitalise on the EU demands and introduce corporate or income taxation to benefit from double taxation treaties.

“In this fashion, the Bahamian economy would boom, our Treasury would have funds to provide for proper education, technical development, greening the economy and medical facilities, all of which would make the Bahamas a far more attractive place to live and invest,” Mr Smith continued. “With our current investment structure we give away real property taxes, Customs Duties, Business Licence fees and Crown Land to foreign investors and get nothing in return, except for a couple of menial jobs. When they repatriate all their profits they pay taxes in their home jurisdictions.”

The Bahamas’ taxation system has long been viewed as regressive, with the dependence on consumer-related taxes chiefly Value-Added Tax (VAT) and, before it, Customs duties - effectively acting as a levy on the cost of living that has no relation to ‘ability to pay’.

As a result, the burden of taxation falls disproportionately on poor and lower income Bahamians, who spend more of their income paying taxes than higherearning Bahamians.

This was acknowledged in the run-up to VAT’s

NOTICE

NOTICE is hereby given that WESELY FONNELUS of Montell Heights, Nassau, 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 23rd day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, SHANIQUIE CAROL SAWYER nee PAUL intend to change my name to SHANIQUA CAROL PAUL SAWYER. If there are any objections to this change of name by Deed Poll, you may write such objections to Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that FEDNO JASON CELESTIN of Lincoln Blvd.P.O Box N357, 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 27th day of March, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

implementation, with increased social security spending identified as the best mechanism for easing the tax’s impact on the former.

Apart from making the Bahamian tax system more ‘progressive’, with those earning more paying more, many observers have also argued - like Mr Smith that the Bahamas needs to use the EU ‘blacklisting’ as motivation for comprehensive reform that repositions the economy for sustainable future growth.

It has long been suggested that introducing a low-rate corporate tax would enable the Bahamas to shed the ‘tax haven’ label and enter into a network of ‘double taxation’ and bilateral investment treaties with other countries, opening up entirely new business markets and niches while taking this nation beyond EU/OECD clutches.

“The regressive Customs duties and other consumer taxes, including VAT, could be reduced,” Mr Smith said

of the corporate/personal income tax rationale.

“I encourage the Government to engage in an urgent public debate about getting rid of regressive taxation, conform to the EU’s demands and release the Bahamian economy from the centralised control and grip of exchange controls, which are stagnating the economy and preventing Bahamian entrepreneurs from growth and opportunity.

“In every way, income or corporate tax would benefit the Bahamas, benefit the economy and ensure the wide gap between rich and poor is reduced. Otherwise we are going to continue to stagnate as a pariah tax haven, and with none of the huge profits generated by foreign direct investment sticking in the Bahamas, and a bankrupt Treasury unable to properly sustain economic and social development. Right now, the less fortunate in the Bahamas are probably bearing the greatest tax burden, which they cannot afford to do.”

But the introduction of a corporate and/or personal income tax is unlikely to be a ‘zero sum’ game, and will require careful analysis, negotiation and consultation to avoid the many pitfalls and unintended consequences should the Bahamas decide to head in this direction.

Income taxes are largely ‘alien’ to Bahamian culture, and they were rejected in preference to VAT in 2015 because of the extra administrative costs and bureaucracy required to collect them. Such taxes would likely spawn a new industry, while also offering

easier opportunities for avoidance and evasion than VAT. And while the Bahamas’ foreign direct investment model has always traded taxes for jobs, this nation’s high-cost, inefficient economy likely makes the repatriation of profits 100 per cent ‘tax free’ a vital attraction for investors.

This, though, could be offset by double taxation treaties, which would enable such profits to be taxed at a lower rate in the Bahamas and avoid a higher rate in their home countries.

NOTICE

NOTICE is hereby given that PATRICE FREDERIQUE of Brougham Street, 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 twentyeight days from the 3rd day of April, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, SHAVANTÉ BRIA MUSGROVE intend to change my name to SHAVANTÉ BRIA McPHEE. If there are any objections to this change of name by Deed Poll, you may write such objections to Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE is hereby given that SONY LAVENDURE of Saffron Street, Pinewood Gardens,,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 twentyeight days from the 3rd day of April, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

PUBLIC NOTICE

NOTICE is hereby given that EDRISS BELLAMOUR of #123 Beacon Field Avenue, Freeport, Gramd 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 3rd day of April, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, SHANNONDOAH H. STURRUP of Sandilands Village, P.O. Box N-504, Nassau, Bahamas, father of HEAVEN ELIZABETH TRINITY DIVINE LOWE, a minor intend to change her name to HEAVEN ELIZABETH TRINITY DIVINE-STURRUP. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

MARKET REPORT WEDNESDAY, 28 MARCH 2018

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

BISX ALL SHARE INDEX: CLOSE 1,925.75 | CHG 0.11 | %CHG 0.01 | YTD -137.82 | YTD% -6.68 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 7.50 3.76 1.64 0.19 4.50 8.80 6.30 5.30 11.50 2.59 1.56 9.25 6.10 10.55 9.00 13.67 12.51 11.00

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.50 8.40 6.00 3.15 9.00 2.18 1.40 7.30 6.00 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 4.23 17.43 9.09 3.34 1.00 0.18 3.60 8.80 6.10 3.66 10.07 2.85 1.50 7.72 6.10 10.44 6.43 4.47 12.51 10.00

CLOSE 4.23 17.43 9.09 3.34 1.00 0.18 3.60 8.80 6.10 3.66 10.07 2.96 1.50 7.74 6.10 10.44 6.43 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 0.11 0.00 0.02 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

110.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.05 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

110.05 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

1,000 700

VOLUME

EPS$ 0.475 0.932 -0.306 0.281 -1.133 0.000 -1.465 0.638 0.583 0.171 0.631 0.102 0.330 0.000 1.129 0.743 0.832 0.293 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 0.084 0.300 0.500 0.150 0.120 0.570 0.000

P/E 8.9 18.7 N/M 11.9 N/M N/M -2.5 13.8 10.5 21.4 16.0 29.0 4.5 N/M 5.4 14.1 7.7 15.3 23.0 0.0

YIELD 1.89% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.64% 3.61% 3.28% 6.85% 2.03% 3.33% 1.09% 4.92% 4.79% 2.33% 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

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

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

PAGE 8, Tuesday, April 3, 2018

THE TRIBUNE