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WEDNESDAY, JUNE 13, 2018

$4.75 Gaming $101m income boost ‘very difficult to replace’ * CONTRACTION RISKY DUE TO GDP, JOBLESS WOES * AND UNDERMINE ‘TECHNOLOGY HUB’ AMBITIONS * CONSULTANT: WILL HURT $15M REAL ESTATE IMPACT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net WEB shop advisers have warned that the $101m in annual salary income generated by the sector will be “very hard to replace” if the budget’s tax hikes result in mass lay-offs. A June 2018 report by the Oxford Economics consultancy, commissioned by the Bahamas Gaming Operators Association (BGOA), said the government’s plans could undermine its ambitions to develop the country as a “technology hub” and stifle real estate development activity. The consultants, who performed an “economic modelling” of VAT’s likely impact for the Bahamas Chamber of Commerce in 2014, argued that the country’s “persistently slow” economic growth and “stubbornly high” doubledigit unemployment rate meant it was especially risky to introduce taxes that threaten the web shop sector’s present model.

SEE PAGE 6

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Web shop patrons face $20m tax bill By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

EB shop taxes will increase by a minimal sum as a result of budget hikes that could extract $20m per annum from Bahamian gaming patrons, new studies suggested yesterday. The Bahamas Gaming Operators Association (BGOA), in its latest salvo against tax increases it views as equivalent to “expropriation” of the industry, unveiled research showing gambling customers will pay a hefty price from the twin five percent levies. The 2018-2019 budget plans to impose this tax on both customer deposits and

* Clients to pay hefty price on 5% levies * Deposit stamp tax ‘unprecedented’ * 40 Island Luck sites already ‘marginal’ over-the-counter (ORTC) lottery sales, targeting patrons directly, with the resulting reduction in gaming activity leaving operator contributions to the Public Treasury virtually unchanged despite the significant turnover-based tax hikes. Christiansen Capital Advisors, in a study commissioned by the Association, predicted that the two five percent levies will suck between $13.3m and $19.9m annually from the pockets of Bahamian gaming patrons. The advisory firm,

describing itself as having worked in 50 states and countries on gaming and wagering, branded the five percent stamp tax on gaming deposits as “unprecedented” and “unique” - something it had never encountered before. Referring to the five percent stamp tax as a levy on “drop” or player bankroll, Christiansen said the Bahamian web shop industry’s “three to one” ratio of customer deposits to losses in 2017 implied a 15 percent increase in patron costs.

“It is likely, however, that consumer behaviour will change somewhat in the face of this tax,” the Christiansen report said. “Today, customers can withdraw and reload their accounts at no additional cost. If this tax goes into effect, Bahamians will withdraw and deposit from their accounts less frequently. “In other words, consumers are now disincentivised to withdraw from their accounts and reload the next time they come in. The extent to which

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

SEE PAGE 7

The Minister, who has responsibility for gaming regulation, told Tribune Business that web shop proprietors had enjoyed “many years of feast off the backs of the Bahamian people” while avoiding any sanction for operating illegal businesses prior to the industry’s 2014 “legalisation”. He suggested that the sharp taxation increase was no justification for threatening to lay-off to 2,000

Super Value chief: Abandon all exemptions for 10% VAT * OTHERWISE CHAIN’S TAX INTAKE HALVES * URGES THREE-MONTH PRICING TRANSITION * AND PUSHES FOR VAT EXCLUSIVE PRICES By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

workers and close 192 web shop locations, pointing out that “legalisation” had created a much more significant consolidation through the reduction from 635 sites. Mr D’Aguilar also argued that the domestic gaming industry’s response to the 2018-2019 budget was “counterproductive”, provoking the government to harden its stance against

SEE PAGE 5

SEE PAGE 4

* Minister urges: reveal your figures * Sector’s wealth ‘off backs of Bahamians’ * ‘Vitriolic’ response counter-productive

WEB shop operators may have to endure “a year of famine” to find the industry’s taxation “sweet spot”, a Cabinet Minister yesterday urging: “Let the Bahamian people be the judge.” Dionisio D’Aguilar, minister of tourism and aviation, called on the seven licensed web shop chains to publicly disclose their financial statements so persons can accurately judge whether the government’s proposed DIONISIO new tax structure is too D’AGUILAR harsh.

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SUPER Value’s principal yesterday argued that a ten percent VAT could achieve the government’s fiscal goals if it abandons its multiple tax exemptions. Rupert Roberts, pictured, told Tribune Business that the Minnis administration should “claw back” the millions of dollars in VAT revenues it will forego on the likes of “bread basket” items and utility bills rather than increase the tax rate by 60 percent. Pointing out that the budget will likely increase “breadbasket” goods as a percentage of Super Value’s inventory to 50 percent, Mr Roberts said this would result in the supermarket chain “collecting half the tax we do now”. The Super Value chief said the government’s plan will result in a “tax break” for the rich, and he urged it

Web shops face ‘year of famine’ on ‘sweet spot’

Winning landfill bid chosen by June 25 THE government plans to select the winning bidder for the New Providence landfill management contract by June 25, a Cabinet minister said yesterday. Romauld Ferriera, pictured, minister of the environment and housing,

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THE TRIBUNE

AVIATION CONFERENCE TARGETS AIRLIFT BOOST TOURISM and aviation officials from 28 countries attended yesterday’s opening of the third annual Caribbean Aviation Meetup conference at Atlantis. Hailed as the region’s largest aviation conference, the conclave, which is being hosted by the Ministry of Tourism and Aviation (BMOTA), will run until Thursday as attendees bid to increase airlift into the Caribbean. Dionisio D’Aguilar, minister of tourism and aviation, said: “I think that it is a wonderful opportunity to bring experts in the field of aviation to talk to all our different governmental groups. “I’m very encouraged because it was a great turnout, and I think a lot can be learned from this conference because it is the way that visitors who spend the most get here. The airlift customer to The Bahamas spends 20 times’ more, and so this is the component of our

airlines can see the Bahamas BAHAMAS’ as a place minister of tourwhere they ism and aviation can do delivering his business in remarks during the a profitaconference. ble manner and, for us, it allows us to showcase our capabilities in the country. And, as we try to reach out to our partners in the region, we can attempt to have harmonisation for the visitor experience.” Commander Bud Slabbaert, chairman and tourism product that we co-ordinator of the Carwant to encourage.” ibbean Aviation Meetup, Captain Charles said: “This is an excellent Beneby, the Civil location because we are Aviation Authority’s direc- close to the United States tor-general, added: “This and close to Florida, and conference is important we have a lot of American because it brings all the companies that want to stakeholders together with reach out to the Caribbean a common vision. The region. The Bahamas is a Caribbean is one of the great place to do that. fastest growing areas of “This is a communicathe aviation sector. That tion platform, and it is growth has to be done in result and solution-orian orderly fashion so that ented. This is what we it is sustainable. want – a platform where “We are hoping that the everyone learns something

DELEGATION at the opening ceremony of the third Caribbean Aviation Meet Up Conference at Atlantis Paradise Island. From left: Captain Charles B Beneby, director general/Bahamas Civil Aviation Authority; Charles Albury, permanent secretary MOTA; Cdr Bud Slabbaert, chairman/co-ordinator Caribbean Aviation Meet Up 2018; Frankie Campbell, minister of transport and local government; Dionisio D’Aguilar, minister of tourism and aviation; Travis Robinson, parliamentary secretary/MOTA; Joy Jibrilu, director general/MOTA; and O Tommy Turnquest, chairman/Bahamasair. Photos: Kemuel Stubbs from it.” Countries participating in the conference include Anguilla, Antigua, The Bahamas, Barbados, British Virgin Islands, Canada, Commonwealth of Dominica, Dominican Republic, Guadeloupe,

Guyana, Jamaica, Luxembourg, Nevis, New Zealand, Puerto Rico, Saba, St Barts, St Eustatius, St Lucia, St Maarten/ St Martin, St Vincent, Suriname, Switzerland, Trinidad, Turks and Caicos, United Kingdom, United

States, and US Virgin Islands. There are 40 presenters scheduled to address the event, including The Bahamas’ director-general of Tourism, Joy Jibrilu, and Bahamasair managing director, Tracey Cooper.

ALIV CONFIRMS READINESS FOR 2018 STORM SEASON By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

ALIV yesterday moved to reassure Bahamians that its nationwide infrastructure was fully prepared to withstand a 2018 hurricane season projected to feature 13 named storms. Damian Blackburn, the mobile operator’s top executive, said: “We have ensured that this hurricane season we have teams stationed in all islands where Aliv is currently operational, as well as customer care teams that persons

DAMIAN BLACKBURN

can contact should they need assistance during a storm. “We are aware, however, that as prepared as we may be when these unfortunate incidents take place, anything is possible. We want persons to prepare well in advance, buy the necessary items listed by the National Emergency Management Agency (NEMA), pay close attention to alerts/warnings, top up your wallet and make sure your devices are fully charged.” ALIV has activated its 2018 Hurricane Season Preparation Mode and, to the best of its ability,

tested and implemented hurricane preparedness initiatives in New Providence as well as all Family Islands where the operator has launched. Stephen Curran, Aliv’s chief innovator, said: “We’ve got 229 live sites all through The Bahamas, of which 90 percent have a back-up diesel generator or a fuel cell which will give power to the cell site if the grid goes offline, which happens quite a lot during hurricanes. “Also, we have added extra batteries to twothirds of the cell sites, giving us extra time just in case the generator

doesn’t start. We’ve also worked on a programme to improve transmission resilience, which is how we get connectivity from the cell sites back to the main switching centres. “Finally, God forbid there is a catastrophe where the full core network in Nassau is destroyed, the second building in Grand Bahama can run the entire network.” As for Aliv’s Information Technology (IT) readiness, Dwayne Davis, its chief solutions architect, said the protocol has been changed slightly due to the new islands Aliv

now serves. “For the 2017 hurricane season Aliv was impacted minimally, given that New Providence was not affected, and that the ALIV network - at that time - was not rolled out in the southern Family Islands,” he said. “So for 2018 it is going to be different, and our plan is even more robust taking into consideration recovery not only for all of the main islands but the southern islands as well. This year, with a combination of IT operations and engineering, we are ready for the 2018 hurricane season.”

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Wednesday, June 13, 2018, PAGE 3

Airports ‘haven’t kept up’ with tourism growth pace By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net AIRPORT development “has not kept up” with the pace of tourism growth, a Cabinet minister lamented yesterday, suggesting that passenger facility charges will be necessary to finance long overdue maintenance. Dionisio D’Aguilar, minister of tourism and

aviation, told the Caribbean Aviation Meetup 2018 conference that public-private partnerships (PPPs) to build and operate airports that have the capacity to be self-sustaining were critical. Of the 28 Family Island airports, 16 cater to international traffic and must meet International Civil Aviation Organisation (ICAO) safety and security requirements for air travel - something he described

as an extremely costly undertaking. Mr D’Aguilar said a 2014 survey by Stantec, a consultancy, found that an $180m investment was needed to address safety gaps and terminal redevelopment - with that number having grown significantly since. “Airport development has not kept pace with tourism growth. North Eleuthera and George Town are examples of this. We believe

D’Aguilar addressing attendees at conference.

GOV’T TOLD: ‘STRENGTHEN’ FLY FISHING REGULATIONS

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Fly Fishing Industry Association’s (BFFIA) president yesterday urged the government to “strengthen and not water down” regulations governing the industry. Prescott Smith told Tribune Business: “The Minister has said that they were going to strengthen the legislation to make sure the illegal operations of mother ships are taken care of, but there are some additional things they need to do to strengthen the legislation and not to water it down. The mother ship issue is one of the core things that could be written with a lot more clarity so people won’t use the loophole with regards to mother ship operations.” Renward Wells, minister of agriculture and marine resources, confirmed during his contribution

to the 2018/2019 budget debate that the government is considering changes to the controversial fly fishing regulations. Mr Wells said: “The Ministry is now considering amendments to the flats fishing regulations that will enhance conservation, broaden the entrepreneurial opportunities for Bahamians and further enhance the economy of The Bahamas. “We will address the longstanding issue of foreign flats fishing motherships and aircrafts that have been a sore sticking point for all Bahamians engaged in the fly fishing industry.” Mr Smith told Tribune Business: “There’s a big difference between a private yacht, which is quite legal, and these mother ship operations. Let’s say a person comes on your private yacht and you want me to take you out guiding; I can do that, but if someone has a yacht and they are using it

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as a floating motel or lodge then they’re literally running an illegal business.” He argued that it was important that the government not be defrauded out of revenue, and said: “There are additional things they can add to the legislation that could strengthen the revenue. Even though they have a conservation fund it’s not been activated. There’s a few other things as well, but they need to be addressed only in the area of strengthening.”

public private partnerships can be fostered,” he added. “The multi-million question is how do we reconcile the massive capital outlay to build not one, but multiple airports, against the need to collect reasonable fees to service the debt and maintain these airports.” “Some level of passenger

facility charge or tourism taxation is required,” said Mr D’Aguilar. “At all steps our goal is to implement a taxation level that is reasonable and doesn’t in any way impede tourism growth.” Tourism and aviation officials from 28 countries and territories are in The Bahamas for the third annual

Caribbean Aviation Meetup, which is being held at the Atlantis resort. The conclave, which is being hosted by the Ministry of Tourism and Aviation, closes tomorrow. Its key objective is to find new ways to increase airlift into the region.

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Web shop patrons face $20m tax bill FROM PAGE ONE they do this today is unknown but, in short, the ratio of deposits to consumer losses (operator revenues) will likely decrease.” Christiansen estimated that the ratio of customer deposits to losses will reduce by one-third as a result of the proposed tax, resulting in a 15-22 percent fall in online gaming revenue. Based on 2017 industry results, the consultancy suggested web shops’ online gaming revenue will decline by between $25.9m to $35.9m annually. As for the five percent tax on OTC lottery sales, the study argued that gaming was “price sensitive” and should not be compared to products such as gasoline for which there was an inelastic demand. It added that the tax increase was equivalent to a 16.7 percent price increase, and would result in an 18 percent decrease in OTC

lottery sales and taxable revenues. “Today, a consumer may buy $100 worth of lotto tickets,” the Christiansen report said. “If that player is statistically average, he or she will lose $30 and get $70 back in prizes. “With a five percent tax on sales, those same $100 in tickets now cost $105. The game itself has not changed. Thus if our player is still statistically average, he or she still gets $70 back in prizes but has now spent $35.” Using Association data for 2017, the study added: “OTC lottery sales represent approximately 18.2 percent of gross gaming revenues, or $35.4m in 2017. Based upon the price elasticity of lotto games we estimate that this will result in the loss of approximately $6.4m in lottery revenues.” The impact on gaming patrons from the 2018-2019 budget tax hikes has been little noticed, with much attention focused on web shop operator predictions that they will be forced to lay-off 2,000 workers and

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close 192 locations if the government follows through with its plans. The Christiansen report, though, highlights the direct impact on gaming patrons - already hit by the VAT rate increase to 12 percent - from the government’s decision to impose “front end” taxation on consumers. With this and the VAT rate increase, gamblers are effectively facing a “double whammy” come July 1, 2018. The government is forecasting that gaming tax revenues will near-double to just over $70m for 2018-2019, but the web shop-commissioned study found that the bulk of any revenue risen - which it projects will fall short of target - will come from patrons rather than the operators. The Christiansen report pegs current web shop industry tax ($22m) and licence fees ($4m) at an annual $26m, but forecasts that the budget-induced decline in gaming activity will result in operator revenues barely increasing to between $27.4m and $30.8m. “The end result is that new taxes on Bahamian consumers will total between $13.3 and $19.9m per annum, and that taxes on gaming houses will total between $27.4m and $30.8m,” the study forecast. “These new taxes

imposed on Bahamian consumers, but not on casino tourists, will result in gaming revenue declines of between $30.2m to $42.2m from 2017 results. “Under the proposed regime, Bahamians will face additional taxes of $13.3 to $19.9m; taxes paid to government by the gaming houses will increase by 25.9 percent to 40 percent, or $3.9 to $8.8m; and it will come at the expense of between 1,324 to 1,517 Bahamian jobs and between $25.2 to $29m in wages.” Even with the “conservative” assumption that web shop industry margins do not change, the Christiansen study predicted that the tax burden on patrons alone could result in 693 total job losses and a $13.3m fall in wages. “Furthermore, the combined impact of declining revenues and a higher tax rate will undoubtedly lead to downsizing and the closing of marginally performing locations,” the report warned. “In a first quarter 2018 performance review, the largest operator of gaming houses, Island Luck, identified 14 marginal performing locations and 26 marginally performing franchisees representing estimated gross gaming revenue of approximately $37.3m, or 35 percent of gross gaming revenues.

NOTICE

NOTICE is hereby given that McKenzie Joseph of Geneal Delivery, Marsh Harbour, Abaco, The 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 13th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

“If these new tax rates go into effect, these identified locations will almost certainly be forced to close, and as this review was conducted before these new taxes were proposed, there could be more locations forced to close as well,” Christiansen added. “Island Luck had 54 store locations and 62 franchisees in 2017. Thus, these marginal operations constitute approximately 26 percent of Island Luck’s stores, and 48 percent of its franchisees. “If we assume that other operators on the island have a similar ratio of poor performing locations and franchisees, that means that these new taxes will likely lead to the loss of 69 stores and 711 employees at 10.3 employees per store, and $13.5m in wages and indirect employment of 114 indirect jobs and between $2.1m in wages.” While gaming house closures typically saw half the revenues divert to rival businesses, the Christiansen report said: “When applied to the $194.6m in gross gaming revenue the industry generated in 2017, we estimate that forced industry downsizing in the face of this new tax regime will result in the loss of an additional $34m in taxable gaming revenue. “To recap, we estimate that the new taxes on Bahamian consumers will result in a decline in taxable gaming revenues of between $30.2m and $42.2m from 2017 (to between $152.4m and $164.3m, respectively). “Furthermore, we estimate that the graduated climbing gambling privilege tax scale on gaming house operators will result in facility closures and downsizing that will further reduce revenues by $34m, or to between $118 and $130m.”

THE TRIBUNE

Super Value chief: Abandon all exemptions for 10% VAT FROM PAGE ONE to allow a three-month transition and VAT “exclusive pricing” as part of moves to increase the rate to the proposed 12 percent. The Minnis administration is planned to treat so-called “breadbasket foods” as zero-rated in a bid to minimise the VAT rate hike’s impact on lower income Bahamians, but Mr Roberts argued that studies conducted prior to the tax’s 2015 implementation all suggested this was the wrong action to take. “There’s still a large contingent for no exemptions because when we were involved with the Chamber’s Coalition for Responsible Taxation we did studies showing exemptions emphatically would not work,” he told Tribune Business. “But they’re still looking at doing exemptions. You’re giving exemptions to the rich, the middle class, the poor and underprivileged. The underprivileged can be handled by increasing the social security budget, and you don’t have to part with all these millions of dollars” in VAT revenues. Mr Roberts continued: “Forty percent of our sales are breadbasket, and in convenience stores it’s about 100 percent. If you take the VAT off, breadbasket items are going to go up to 50 percent, and they don’t have to part with that. We’d collect half the VAT we do now. “That’s going to be our push. If they [the government] had more studies and facts, they’d do things differently. If they didn’t have all these exemptions, they may be able to do a ten percent VAT and bring in enough revenue. We don’t want to slow down the economy; we want to keep it moving. “A ten percent VAT would be nice - if there were no exemptions. It’s not my decision. Proper studies would put us back to where we were; no exemptions.” The government believes a 12 percent VAT, representing a 60 percent hike to the current 7.5 percent levy, is the best option available to it in closing a $400m financing “gap” that will allow it to both pay-off $172m in unfunded “arrears” and allow it to hit its Fiscal Responsibility Bill targets. Many Bahamians, though, believe the magnitude of the VAT increase and pace of fiscal consolidation are too much for the economy and struggling Bahamian households to bear, given that it will increase inflation and living costs while lowering disposable income and consumer/investor confidence. However, Mr Roberts’ call for a ten percent VAT

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Wednesday, June 13, 2018, PAGE 5

Web shops face ‘year of famine’ on ‘sweet spot’ FROM PAGE ONE revising a structure that the sector claims will increase its taxation burden by between 238 percent to 453 percent. He hinted, though, that the government remained open to further discussions with the web shops before the new fiscal year’s July 1 start provided they eliminated the “vitriol” and “character assassinations” of ministers. The Minister also revealed that the Minnis administration had modified its web shop taxation reforms following a pre-budget meeting with one operator - believed to be Island Luck’s Sebas Bastian - although he declined to reveal the name. “If they feel the gaming industry is being unfairly taxed, then meet with us and explain why,” Mr D’Aguilar challenged the web shops. “They should show and reveal all their financial statements. “They should reveal to the public what revenues and profits they’re making, the taxes they’re paying, so people can see the impact on their financial statements. The question of whether it’s fair is subjective. Let the people determine whether it’s fair or not. “There’s no doubt The Bahamas has been good to them. They were in business illegally, and none of them went to jail, none of them were ever charged. They’ve amassed significant wealth off the backs of the Bahamian people, and I just think their approach is a little harsh.” Gaming is a highly-regulated activity worldwide, and The Bahamas is little different. The government, via the Gaming Board, knows the financial performance of each web shop operator as they are required to file audited financial statements with the regulator to confirm due taxes and other fees have been paid. There is no present requirement, though, for web shops to publicly disclose their financial statements - as banks and trust companies, and insurance companies, must currently do. Mr D’Aguilar, meanwhile, urged the web shops to stop shouting at the government and instead talk to it about the proposed tax hikes. “If they feel it’s unfair, and they make the case, governments are not unreasonable,” he said. “If they feel we’re making a mistake, and they feel they’re being over-taxed,

then make the case. We’re not unreasonable people.” The Minister then revealed that the government met with one industry operator prior to the 20182018 budget, although he did not indicate whether the full extent of the taxation overhaul was revealed. “We did meet with one of the major operators prior to our plan. We did change some things based on what he said,” Mr D’Aguilar told Tribune Business. “I met with someone from the industry. We did discuss it, and did change it based on the discussion. We obviously didn’t change it in a manner they agreed with.” He added that the nature of the domestic gaming sector’s post-budget reaction had caused the government to dig in its heels against any revisions to the tax hike, and suggested a change in approach - where the sector talked to the government rather than shouted at it - might produce a more favourable reaction. “Putting the pedal to the metal before all discussions are exhausted is counter-productive,” Mr D’Aguilar said. “They’ve [the web shops] come out the gate so vitriolic, so harsh, it’s causing a hardening of positions. “It’s better if there’s dialogue and conversation. They need to talk to the government. If you don’t agree with it it’s perfectly within your right, but you don’t have to launch these character assassinations of everybody. It’s counterproductive. It just causes an unfortunate situation. Everybody needs to calm down, everybody needs to get into a room. We’re all Bahamians at the end of the day.” Mr D’Aguilar, having indicated on Monday that the budget’s tax hikes were “set in stone”, yesterday appeared to leave the door ajar for further talks with the web shops. He hinted, though, that any reforms may have to wait until the 2019-2020 budget, which would have the advantage of a year’s data on the tax change impact. “They’ve had years of feast,” Mr D’Aguilar told Tribune Business of the web shops. “Maybe they have to have a year of famine, and then we review. I don’t think the government right now wants to change their position, but who knows? Maybe after a year of data, analysis and what they say comes true, fine. governments are constantly changing taxes.

NOTICE

NOTICE is hereby given that ERIKA DUBREUS of Joe Farrington Rd., Kool Acres Subdivision, New Providence, The 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 13th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE IN THE ESTATE OF SHIRLEY BERNICE DIVOK late of the City of St. Catharines in the Regional Municipality of Niagara in the Province of Ontario, Canada, deceased. NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the Undersigned on or before the 17th day of July, 2018, after which date the Estate Trustee With A Will will proceed to distribute the assets having regard only to the claims of which he shall then have had notice. AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. DELANEY PARTNERS

Attorneys for the Estate Trustee With A Will Chambers P. O. Box CB-13007 Lyford Manor (West Bldg) Western Road Lyford Cay Nassau, The Bahamas.

“They have to recognise they’ve had many years of feast. If they have to have a year of famine to find the right [taxation] sweet spot, they don’t have to close locations and lay-off people. They think it’s in one spot, we think it’s much further away. “The question is what is the level of taxation that should be applied to the gaming industry. We all agree it’s too little, they think it’s now too much. Let’s see where it settles.” The web shop industry has itself conceded there is scope to increase its tax burden, though not to the extent the government is seeking. Research conducted on behalf of the Bahamas Gaming Operators Association (BGOA) suggested that the global taxation standard lay between 15-20 percent of gross gaming revenue. The present tax structure requires web shop operators to pay 11 percent on taxable revenue or 25 percent of EBITDA (earnings before interest, taxation, depreciation or amortisation), whichever is greater, plus a two percent contribution to community causes - equating to 13 percent of gross gaming revenues. “As the Bahamas Gaming Operators Association (BGOA) has consistently stated, we are not opposed to an increase in taxation,” the Association said yesterday. “However, an increase should be based on consultation, appropriate comparisons, empirical data and independent expert analysis that is specific to this gaming jurisdiction.” However, under the government’s proposed new “sliding scale”, web shops will pay: • Up to $20m in revenue, a rate of 20 percent. • Between $20m and $40m, a rate of 25 percent. • Between $40m and $60m, a rate of 30 percent. • Between $60m and $80m, a rate of 35 percent. • Between $80m and $10m , a rate of 40 per cent. • Over $100m, a rate

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of 50 percent. And, in a nasty twist as far as web shop operators are concerned, the government

has also imposed new taxation on gamblers themselves rather than the sector. Patrons, from July 1, will

have to pay a five percent stamp tax on both their web shop deposits and non-online games/digital sales.

PAGE 6, Wednesday, June 13, 2018

THE TRIBUNE

Gaming $101m income boost ‘very difficult to replace’ FROM PAGE ONE Adding 1,130 “indirect” jobs to the industry’s 2,753 employees, Oxford Economics said: “When the full economic impact of the industry is considered, Oxford Economics estimates that domestic gaming supports 3,881 jobs. In a country struggling with chronically high unemployment, these jobs, and the $101m in income they generate, would be very difficult to replace. “Moreover, the industry increases GDP in The Bahamas by $284m. In fact, each gaming employee contributes $103,000 each year to national GDP. This activity, plus taxes paid directly by the industry, generates an estimated $46m in annual tax payments to the national government. “The economic impact of the gaming industry is

especially important to The Bahamas given the country’s persistently slow economic growth and stubbornly high unemployment rate. In our research reports, Oxford Economics forecasts that household income in The Bahamas will remain flat through 2022, and the country’s unemployment rate will remain unchanged at over 12 percent during the next five years, absent steps to accelerate economic growth.” The Oxford Economics report, released by the industry yesterday, said the web shop sector’s $284m contribution “is significant enough to make a measurable difference to the country’s entire GDP, increasing it by 2.9 percent” based on total economic output of $9.79bn. Many observers, especially the web shop industry’s critics, are likely to be highly sceptical of this analysis as the sector

PUBLIC NOTICE

intensifies its lobbying effort against tax increases it says range from 238 percent to 453 percent. The Minnis administration, too, appears to have hardened its stance against any compromise over the budget tax increases, and is seemingly determined to ensure that the proverbial “tail does not wag the dog”. It believes the domestic gaming sector could, and should, contribute much more as a so-called “sin” industry especially given the perceived negative impact on many communities and families, especially in the out islands, that has resulted in the redistribution of wealth into the hands of a few. The Oxford Economics report, meanwhile, estimated that the web shop sector currently contributes $35m in taxes to the Public Treasury directly, with another $10m

produced by its spin-off activities. Should the tax hikes result in the industry’s contraction, the study argued that the “ripple effects” will spread to sectors such as real estate and construction. With web shop operators unable to access banks and the mainstream financial system pre-legalisation, many chose to invest their profits in real estate developments and other sectors of the economy - something they continue to do. “Real estate investments by domestic gaming support an additional 200 jobs, $7m in income and contribute $15m to national GDP,” Oxford Economics projected. “Profits from domestic gaming are often channelled into real estate development activity throughout The Bahamas, and projects currently underway or recently

The Public is hereby advised that I, JAVANTE TERSEAN DALEY of St. Andrews Beach Estates, New Providence, The Bahamas, intend to change my name to JAVANTE TERSEAN STORR . 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.

FROM PAGE FOUR has already been echoed by the likes of Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) president, and exCabinet minister, Leslie Miller.

For the 2018-2019 budget abandons the lowrate, broad-based VAT model that was praised by the likes of the International Monetary Fund (IMF) and Inter-American Development Bank (IDB) as the most efficient such

N O T I C E

NOTICE

SAPURA EXPLORATION AND PRODUCTION (VIETNAM) INC ____________________________________ N O T I C E IS HEREBY GIVEN as follows:

SAPURA EXPLORATION AND PRODUCTION (VIETNAM) INC _______________________________________________ Creditors having debts or claims against the abovenamed Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 13th day of July, A.D., 2018. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

(a) SAPURA EXPLORATION AND PRODUCTION (VIETNAM) INC is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 5th day of June 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General.

Dated the 13th day of June, A.D., 2018.

Kirvy Ferguson Liquidator Shirley House, 253 Shirley Street, Nassau, Bahamas

Dated the 13th day of June, 2018 HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company

TUESDAY, 12 JUNE 2018

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

BISX ALL SHARE INDEX: CLOSE 1,908.69 | CHG 0.00 | %CHG 0.00 | YTD -154.88 | YTD% -7.51 BISX LISTED & TRADED SECURITIES 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

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL 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 2.15 4.16 2.00 178.69 157.58 1.55 1.70 1.64 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 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.50 17.43 9.09 3.85 1.01 0.18 3.15 8.89 6.12 3.85 10.05 2.53 1.60 7.57 6.10 11.00 6.32 3.44 12.51

CLOSE 4.50 17.43 9.09 3.85 1.01 0.18 3.15 8.89 6.12 3.85 10.05 2.53 1.60 7.55 6.10 11.00 6.32 3.44 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 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

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

CLOSE 100.00

CHANGE 0.00

107.66 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.03 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

107.63 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

VOLUME

1,600 5,400 500

VOLUME

EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.330 0.000 1.129 0.679 0.610 0.293 0.665

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.320 0.220 0.120 0.620 0.060 0.050 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.5 18.7 N/M 13.6 N/M N/M -3.2 13.9 10.7 22.5 16.0 24.8 4.8 N/M 5.4 16.2 10.4 11.7 18.8

YIELD 1.78% 6.48% 0.00% 5.97% 0.00% 0.00% 0.00% 3.60% 3.59% 3.12% 6.17% 2.37% 3.13% 1.11% 5.25% 4.55% 3.16% 3.49% 4.64%

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 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 2.15 4.13 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.15 8.14 6.41 11.26 11.68 10.24

YTD% 12 MTH% 1.23% 4.12% -0.16% 5.10% 0.74% 2.38% 4.66% 3.89% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

MATURITY 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 30-Apr-2018 30-Apr-2018 26-Apr-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018

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

tax in the Caribbean. The move to introduce multiple exemptions also increases the complexity and costs associated with the private sector’s administration of VAT, while creating loopholes that undermine compliance and facilitating avoidance. Mr Roberts, meanwhile, said that while the VAT rate hike and exemptions represented a “flick of the switch” and was “easily done” for Super Value’s systems, changing all shelf and inventory prices for July 1 was a different matter. “You can’t expect supermarkets to change from

one price on Saturday night and open on Sunday morning with another. That’s impossible,” he told Tribune Business. “How much time is the Minister going to give us to do that? “That’s why there’s a body pushing for VAT exclusive pricing this time. If we do inclusive pricing it looks like pricing has gone up; it looks like consumers got slammed at both ends. I hope they decide to make it non-inclusive, and I think that’s what they’re going to do. They’ll have to give us time; three months would be a good grace period.”

NOTICE

NOTICE is hereby given that Antonise sensuren of Murphy Town, Murphy Town, Abaco, The 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 6th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

MARKET REPORT 52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.10 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 8.78 5.67 3.25 12.50

limited”. It added that the sector’s development was also helping to support high-end, middle class jobs that could play a key role in developing Bahamian technology industry. “In a country anxious to develop its technology sector, the gaming industry already employs an estimated 75 full-time computer network administrators, programmers, web designers and cybersecurity experts, and other information technology workers,” the report said. “Beyond that contribution, nearly 90 more are engaged in financial, compliance and human resource management. For these 165 workers plus the many more operational and supervisory managers, gaming provides an opportunity for career advancement and professional development.”

Super Value chief: abandon all exemptions for 10% VAT

INTENT TO CHANGE NAME BY DEED POLL

52WK HI 4.50 19.17 7.50 3.85 1.48 0.19 4.05 8.90 6.60 5.30 10.40 2.71 1.61 8.21 6.10 11.48 7.29 13.67 12.51

completed include residential complexes, townhouses, apartment style and stand-alone homes for middle-class families, plus commercial office and retail space for small, medium and large businesses. “These added benefits reinforce the importance to The Bahamas of having an industry with local owners who are committed to investing their earnings into The Bahamas.” The web shop industry’s opponents, though, are likely to frown at such a conclusion, believing that the sector’s principals were able to use their untaxed, pre-legalisation profits to gain an unfair competitive advantage over rival businesses and move into other, legitimate areas of the economy. Oxford Economics, meanwhile, said the web shops provided 800 jobs on Family Island where “employment opportunities are often

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

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

NOTICE is hereby given that DELTON OSHAIN BARRETT of Misty Gardens, South Beach, P.O. Box SP 64144, New Providence, The 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 13th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Wednesday, June 13, 2018, PAGE 7

Winning landfill bid chosen by June 25

FROM PAGE ONE said a “letter of award” would be issued to the preferred bidder by that date, followed by an executed agreement. He told the House of Assembly during the 2018/2019 budget debate: “At present all administrative processes are being finalised to permit the government to issue a Letter of Award, and to execute the agreement with the selected bidder, by June 25, 2018. As it stands, in the upcoming budget year the New Providence sanitary landfill will come under private management.” Mr Ferreira said 17 bidders submitted expressions of interest (EoI) for the New Providence landfill, but just seven qualified for the request for proposals (RFP) round. Four out of the seven firms responded and paid the registration fee. Those firms included Bahamas WTP Ltd; Bahamas Waste; Providence Advisors and the Waste Resources

THIS image of burning tyres and black clouds of toxic smoke at the New Providence landfill was sent to Waterkeeper Alliance by a concerned Bahamian citizen pleading for international help. Development Group; and APAPA International (Nassau). Mr Ferreira said APAPA International’s submission was received after the closing date of April 9, 2018, at 4pm,

resulting in its bid being summarily rejected by the Tenders Board. The government has allocated just over $1.3m towards entering into an agreement with the

selected bidder. “It is our heartfelt desire that the improvements soon to be implemented will address once and for all the ongoing concerns that have made the landfill

a serious national priority,” said Mr Ferreira. Cedric Scott, the actor, producer and uncle of former Cabinet minister, Jerome Fitzgerald, is listed by Bahamas WTP LTD’s website as one of its five principals. Its two other Bahamas-based principals are banker, Ivylyn Cassar, and permanent resident, Fay Russell. The company’s physical address is listed as Ms Cassar’s Equity Bank & Trust, based in western New Providence. Bahamas WTP is a consortium that also features two US companies, Delaware-incorporated Ameresco Ltd and Louisiana-based Furnace and Tube Services Inc. Bahamas Waste is the BISX-listed company of the same name, while Providence Advisors is headed by the well-known local investment banker, Kenwood Kerr. His partner, Waste Resources Development Group, features all the other Bahamian waste disposal groups bar Bahamas Waste.

Meanwhile, addressing the issue of renewables, Mr Ferreira said: “It remains our aim to incorporate renewables into the national grid, aiming for 30 percent by 2030. In support of renewable energy generation, improving residential energy efficiency and promoting sustainable development, my Ministry is currently finalising a plan that would make renewable energy installations mandatory with the construction of new homes within government subdivisions.” “This plan will require that all homes install solar water heaters. A tier system is being developed that will outline the required percentage of energy that needs to be generated from renewable technology to the home’s square footage. To assist homeowners with financing the shift to energy efficient appliances, my ministry will look at current duty rates and will also engage local banks and businesses to explore incentive options.”

Seattle divided as leaders halt tax on companies like Amazon SEATTLE Associated Press Seattle leaders on yesterday repealed a tax on large companies such as Amazon and Starbucks after a backlash from businesses, a stark reversal from a month ago when the City Council unanimously approved the effort to combat a growing homelessness crisis. A divided crowd chanted, jeered and booed at the

council meeting, drowning out the leaders as they cast a 7-2 vote. People shouted, “stop the repeal”, as others unfurled a large red banner that read, “tax amazon”. An opposing group held “no tax on jobs” signs. The vote showed Amazon’s ability to aggressively push back on government taxes, especially in its affluent hometown where it’s the largest employer with more than 45,000 workers and where some have criticised it

for helping cultivate a widening income gap that is pricing lower-income employees out of housing. The tax was proposed as a progressive revenue source aimed at tackling one of the nation’s highest homelessness numbers, a problem that hasn’t eased even as city spending grew. Businesses and residents demanded more accountability on how Seattle funds homelessness and housing and said the city should take

a regional approach to the problem. Many worried that Amazon and others would leave the city as the companies sharply criticised the tax. The online retailer even temporarily halted construction planning on a new high-rise building near its Seattle headquarters in protest. Amazon called the vote “the right decision for the region’s economic prosperity”. The company is “deeply committed to being part of

the solution to end homelessness in Seattle,” Drew Herdener, an Amazon vice president, said in a statement. City leaders underestimated the frustration and anger from residents, businesses and others over not just a tax increase but also a growing sense that homelessness appears to have gotten worse, not better, despite Seattle spending millions to fight it. It poured $68m into the effort last year and plans to

spend more this year. The tax would have raised roughly $48m annually. But a one-night count in January found more than 12,000 homeless people in Seattle and the surrounding region, a four percent increase from the previous year. The region saw 169 homeless deaths in 2017. Many supporters called the repeal a betrayal and said the tax was a step toward building badly needed affordable housing.

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