06152018 business

business@tribunemedia.net

FRIDAY, JUNE 15, 2018

$4.80 Gov’t targets $100m non-VAT revenue rise * DPM: FEES MATCH SERVICE COSTS * 10% VAT NOT SUFFICIENT ON ‘SLIDE’ * FISCAL ‘CHICKENS COME HOME TO ROOST’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government is predicting non-VAT fee and tax increases will generate an extra $100m in the new fiscal year, amid warnings that “the fiscal chickens have come home to roost”.

KP Turnquest, deputy prime minister, yesterday told the National Chambers of Commerce Conclave that Immigration and Port fee hikes; the increased two percent real property tax rate on foreign-owned vacant land; and greater licensing fees for large commercial services were all part of a strategy to align charges with the true cost of government services.

“We considered all of the user fees and services that have not been adjusted for many years and reassessed those,” he said. “We looked at Immigration and port fees, which barely cover the cost of operations at this point.

“We looked at real

SEE PAGE 7

Govt deals: 2/3 of firms need ‘personal contacts’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TWO-THIRDS of Bahamian businesses have needed to use “personal contacts” to close or speed-up government deals, showing why “red tape” and corruption are among the country’s top woes.

A Bahamas Chamber of Commerce and Employers Confederation (BCCEC) survey, the findings of which were revealed yesterday, identified “government bureaucracy”, “poor work ethic” in the labour force, and “corruption” as the three greatest obstacles to private sector and economic growth.

The online survey of Chamber members, conducted between March 14 and April 2, 2018, saw fourfifths of businesses single out

THE Government was yesterday warned it “will create havoc” if it imposes triple-digit tax increases on hundreds of foreign second home owners via planned real property tax reforms.

Attorneys and realtors united in “outrage” over a seemingly innocuous cluse in the Real Property Tax (Amendment) Bill 2018 that alters the definition of “owner-occupied property”, with many admitting they had been unaware of the move until alerted by Tribune Business.

This newspaper was itself informed of the reform, which requires “owneroccupiers” to reside in their homes for six months or more per year, by an attorney alarmed at the negative impact for Family Islands economies that rely heavily on the second home market as a key driver.

The Real Property Tax Act currently defines “owner-occupiers” as persons who reside in their homes “on a permanent or seasonal basis”. This allows The Bahamas’ second homeowner community, many of whom are in this nation for just a few months per year, to be taxed at the “owner-occupier rate” that was reduced in 2016.

* ‘Red tape’ top woe for 80% of businesses * And over half cite corruption, ‘work ethics’ * Bureaucracy spreads to online govt public sector “red tape” and bureaucracy as their biggest problem.

And more than half cited “poor work ethic” among employees, together with corruption, as the next priorities to be addressed if The Bahamas’ economic competitiveness and productivity are ever to improve.

The findings were disclosed by the Inter-American Development Bank (IDB), which collaborated with the Chamber and Ministry of Finance on a survey that revealed the scale of the private sector’s struggle to conduct business with the Government online.

“An online survey conducted by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), in collaboration with the IDB and in coordination with the Ministry of Finance (MOF), shows that 79.1 percent of the respondents think “inefficient government bureaucracy” is the most problematic factor, “poor work ethic in national labour force” with 57.93 percent is the second, and “corruption” with 55.47 percent of the responses, is the third,” an IDB document revealed.

“When asked about the last transaction conducted with the government, only

33 percent said they managed the transaction completely online. When asked about how many documents they had to submit for this transaction, 38.16 percent said five or more documents.

“Sixty-seven percent said that they had to interact three or more times with the government before completing the transaction.

Finally, 30.26 percent of the respondents said they had to spend eight hours or more to complete the transaction. In addition, 65.47 percent have used personal contacts to expedite the processing of a

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ISLAND Luck employees were seemingly threatened with the loss of a day’s pay if they did not attend yesterday’s anti-VAT and gaming tax protest in Rawson Square.

Sources close to the web shop suggested the “pay cut” warning was untrue, but an internal staff memo written

by Island Luck’s operations manager said it was “mandatory for all staff to be in attendance”, with the company’s operations closed until 3pm.

The memo, carrying Antoinette Lotmore’s name,

* ‘MANDATORY’ FOR ISLAND LUCK STAFF ATTENDANCE * COMPANY SOURCES: NO ‘KNOWLEDGE’ OF WARNING * MINISTER: JUST 5% OF REVENUES GET TOP RATE

$4.82 BPL targets $2m monthly VSEP savings

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The document, which was sent to Tribune Business and widely circulated on social media and online, also told Island Luck and Ultra Games workers that “no company or political logo or paraphernalia” were to be brought or warn to the protest against the 2018-2019 budget tax increases.

“Kindly be advised that Island Luck and Ultra Games will be supporting the march scheduled for tomorrow morning, commencing from the Southern Recreation Grounds,” the operations manager wrote.

“All branches and yesterday’s

BAHAMAS Power and Light (BPL) will save up to $24m annually through a voluntary separation (VSEP) exercise that attracted 319 applicants, the utility’s chairman said yesterday.

“We had a total of approximately 300 people who applied to be separated from the company,” Darnell Osborne revealed.

“On June 22, we will notify those employees who have applied whether the company approves them to be separated or not. June 30 is the anticipated date for separation.

“What has to happen next is the managers of the various areas, technical and administrative, have to meet. They will then determine the critical employees that they need to keep, and a list will be given. At that point the numbers would be determined.

“At this point we do not have an actual number of those that will be approved; not until management has been able to meet and determine the necessary numbers in order to ensure the safety and protection of the business. The management and the Board reserve the right to refuse any critical employees that we feel if we release at this time would affect the operations.”

SEE PAGE 6

SEE PAGE 4

SEE PAGE 4

Web shop pay cut threat over anti-VAT demo

Second home ‘havoc’ on triple-digit tax rise

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.91

$4.82

highlights the extent of the organisation behind yesterday’s demonstration, with employees told to report to four “pick-up points” - from where they would be bussed PROTESTER during to the Southern Recreation demonstration in Rawson Square.

Grounds - “at 6.45am sharp”. Photo: Terrel W Carey/Tribune Staff.

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* REAL PROPERTY TAX REFORM BRANDED ‘RIDICULOUS’ * ATTORNEYS, REALTORS FEAR FOR FAMILY ISLANDS * BUDGET’S ‘DEVIL IN THE DETAIL’ STARTS TO BITE They currently pay a rate of five-eighths of one percent on their home’s value between $250,000 and $500,000, with the portion above $500,000 taxed at one percent. The total sum they pay is also capped at $50,000 per annum.

However, the bill proposes to eliminate the term “seasonal basis” and replace it with a definition of “permanent basis” that is “six months or longer”.

Tribune Business’s attorney contact explained that this has “significant” implications for the second home market, as homeowners will now have to reside in their Bahamas properties for a minimum of six months per year to retain “owner-occupied” status.

Should they fail to meet this benchmark, the attorney said their properties face being reclassified as “residential property” or “other property”. Since

SEE PAGE 5

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PAGE 2, Friday, June 15, 2018

THE TRIBUNE

THE TRIBUNE

Friday, June 15, 2018, PAGE 3

How small businesses can adjust to VAT hike

T

HE Bahamas is embroiled in a heated, and somewhat divisive, national conversation regarding taxation. Many, including the private sector, are concerned about the adverse impact this might have on consumer spending patterns and, ultimately, our already-strained economic condition. While governments must do what is in the best interest of the country at large, discomfort and frustrations in the process can stir much controversy.

The greatest concern for many is how these economic policy actions might, either in the short or longterm, negatively impact the bedrock of our economy: Small and medium-sized businesses. A healthy economy requires small business growth and sustainability.

When small businesses are healthy and prosperous,

IAN FERGUSON BY

the community benefits through employment.

Now, more than ever, small businesses must take note of every “best practice” to ensure they remain competitive and strong.

Here are some valuable points for the small

business sector to consider, even as we face the inevitable tax increase and subsequent adjustments.

1. Bill faster. Your receivables can count for 40 percent to 50 percent of your actual assets. Do not batch invoice; bill as soon as you can.

2. Simplify your business.

Weed out the unprofitable and the hard-to-sell.

3. Simplify your marketing message. In fewer words, let your identified audience know why you are the better, safer, greater quality option.

4. Get your business and web site listed in relevant directories. Be sure to use online options.

5. Learn to delegate.

Figure out what you do that turns dollars. Then delegate the rest. This may mean outsourcing certain aspects of your business, such as training, human resources and

Gov’t facing long haul to be ‘business friendly’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE government still has “a great deal to do” to be viewed as business-friendly, with few businesses seeing any improvement in their interaction with public sector bureaucracy.

Michael Maura, pictured, the Bahamas Chamber of Commerce and Employers Confederation’s (BBCEC) chairman, said the private sector had to hold the government accountable following a survey rating the latter’s progress on “ease of doing business” issues.

Mr Maura said 129 businesses from 20 different sectors participated in the survey. He added that when it came to starting a business, 58.4 percent of respondents said they had not seen any improvement.

And, with respect to Town Planning, some 67 percent of respondents said dealings had not become easier.

Eighty-five percent of

respondents said they had not seen any improvement on access to credit. As for skilled labour access, 23.73 percent of companies said they had seen a slight improvement, while 75 percent said there had been none.

Mr Maura said 85 percent of respondents said they had seen no improvement on the energy front, and 96.5 percent reported the same for banking services on the Family Islands. With regards to Customs filings and processing, 41 percent of respondents said they had seen a slight improvement, while 58 percent reported no improvement.

Retailers slam ‘unacceptable’ warning on taxation changes

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net BAHAMIAN retailers yesterday said a one-month transition was not enough time to adjust to a 12 percent VAT, blasting the lack of consultation with the sector as “unacceptable”.

Tara Morley-Nolan, the Bahamas Federation of Retailers (BFR) co-chair, said the sector was faced with having to re-price hundreds of thousands of items, meaning that “one month is not enough”.

“The lack of consultation with our sector is unacceptable, quite frankly,” said Mrs Morley-Nolan following an address by Deputy Prime Minister K Peter Turnquest.

She added that while retailers were “thrilled” by the government’s decision to provide duty-free

exemptions on clothing and shoe imports, there was still no relief for other sectors of the industry that attract extremely high duty rates, such as furniture stores and businesses selling car parts - which attract 45 percent duty and 60 percent duty, respectively.

Mr Turnquest, in response, said the government will shortly publish its VAT “transition rules” to address a number of concerns raised by retailers.

“We understand the challenges that retailers face, and are prepared to do some things in respect to that,” he added, suggesting that the government would exercise “leniency” on the re-pricing compliance.

“We recognise that there are some businesses that would have contracts upfront for long term, or for

goods and services into the future. The transition rules will deal with that,” Mr Turnquest said. “It is not our intent to put any of our business entities, our service providers, at a disadvantage. That goes against our intentions.”

He added: “With respect to the duty on car parts and other specific items, we made the adjustments which we thought were prudent in this particular budget. I’m not saying that we got it all right, but we also must be careful that we don’t erode the base so much that what we are trying to accomplish is defeated trying to satisfy a particular industry or player.

“Experience will tell us how we can adjust the model. There are a number of representations for a number of areas to adjust for a particular industry.

We can’t be all things to all people. That is what got us in this position. I can assure you that we are open to conversation. We do want to be collaborative.”

VAT accounting.

6. Encourage employees to explore more efficient approaches to their tasks, instead of relying on their standard way of doing things.

Simplify your business.

Weed out the unprofitable and the hardto-sell.

7. Do not forget suppliers. They might not be on your payroll, but they are more apt to do a few things for you at no charge because you really take care of them.

8. Work faster. If you can condense three four-month jobs into three three-month jobs, you can do one more

job in the year.

9. Reward your team for meeting budgets and timelines. A five percent bonus is cheaper than a 20 percent increase in costs.

10. Cut overheads by automating most of the non-producing items such as accounting, customer care, voice mail, sales reporting, ordering and record keeping.

11. Make public appearances when the media needs an expert opinion in an area you are expert in.

Give it. You may even want to volunteer to write for the daily newspaper on your area of focus.

12. Give something valuable away on your web site; at your front counter; when you send out your invoices; when you deliver goods.

This should be free to you, but valuable to the recipient. For example, coupons or a “how to”.

13. Highlight offers,

features, promotions and news in your e-mail footers, invoices and letter signatures.

14. Start social accounts with Twitter.com, Facebook.com and LinkedIn. com, and post articles.

15. Go where your audience is on the web. If your potential audience hangs out on forums, then post to those forums. Become a trusted advisor.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com

PAGE 4, Friday, June 15, 2018

THE TRIBUNE

‘TREMENDOUS ANXIETY’ OVER WTO ACCESSION

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

* PRIVATE SECTOR SEEKS IMPACT STUDY

The Chamber of Commerce’s chairman yesterday warned there was “tremendous anxiety” over the WTO accession amid the absence of analysis on its likely impact.

Michael Maura,

addressing the National Conclave of Chambers of Commerce, said the private sector organisation will pay the costs associated with conducting an economic impact study to determine World Trade

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Organisation (WTO) membership’s impact on local industries.

“It is the private sector that plans on raising significant monies to ensure that we have the right kind of economic analysis going into WTO, because what we found through all those industry consultations was that the private sector was

asked to indicate where the “red line” was; that place we can’t go with the negotiations,” he explained.

“In almost every instance the industry was unable.

They would have if they could, but they were unable to articulate where that “red line” is because there isn’t sufficient analysis and data which speaks to the impact

that WTO would have on a particular industry.

Mr Maura indicated that the Chamber had asked thegovernment for six months to complete its analysis.

Bids to conduct the study will likely be sought from consultancies, with the Chamber also expected to contract Oxford Economics to study on the

Govt deals: 2/3 of firms need ‘personal contacts’ FROM PAGE ONE government transaction.”

The revelations came in an IDB report associated with a $30m project designed to facilitate the government’s “digital transformation” and, in so doing, strengthen The Bahamas’ economic competitiveness - something it identified as the biggest impediment to job creation and economic growth.

“The Bahamas has gone through an extended period of flat economic growth averaging 0.5 percent for the past ten years,” the document said. “The country’s limited competitiveness has held up efforts to promote economic growth by attracting foreign investment and facilitating local entrepreneurship.

“The Bahamas occupied the position 119th out of 190 countries in the 2018 Doing Business Report (DBR) due to the difficulties to conduct business activities in the country. Key procedures to do business, such as registering a company or a property,

require numerous steps and long waiting periods, which increase the costs for local entrepreneurs and potential foreign investors.

“Registering a company in The Bahamas is four times’ costlier than in OECD countries. Government bureaucracy affects competitiveness by adding an extra cost to the regular cost of operating a business, and puts a financial burden on low income families that must spend time and money in transportation and waiting lines, thereby losing the income related to the time required to deal with the administrative bureaucracy,” the IDB report added.

“Time-consuming government procedures are also a deterrent for entrepreneurial activity, since entrepreneurs need to operate with agility in their early stages to quickly generate revenue with their limited initial capital.”

The IDB-financed $30m “digital transformation” is designed to reduce the government’s inefficient bureaucracy, and bolster “low levels of transparency”, which affect the public sector’s internal workings just as much as its dealings with the public and private sector.

Pointing to the continued reliance on a paper-based system, the report said: “Hiring a new government employee requires seven procedures with different government agencies. To open an e-mail account for a government employee, three memos need to be physically exchanged among government agencies.”

And, although The Bahamas enjoys an 84 percent Internet usage penetration rate, just 11 of 366 government procedures some three percent - can be completed online. Public sector capacity was described as being “very weak”, while morale, wages, accountability, skills and budgets were all branded “low”.

“Out of 18 ministries, just four have point-to-point interoperability that allows them to exchange information digitally. No centralised exchange mechanism is available,” the IDB report said.

“The Ministry of Public Service, responsible for the management of the government’s human resources, has an annual budget for training of $150,000 to serve close to 20,000 employees, which

allows it to provide training to about 200 employees per year (one percent of the number of employees).

“The Bahamas performs relatively low among countries assessed under the Open Data Index, being ranked 74th out of 94 included in the survey. The Bahamas was assigned just 17 percent of the potential maximum score.”

The IDB reiterated that the Ministry of Finance’s Department of Information Technology, which is responsible for IT services across the government, has only 68 persons - with some lacking “sufficient knowledge for the issues they need to handle”.

“The department of IT in the Registrar General’s Department has one professional full-time and one part-time,” the report said.

“This office is responsible for the Business and Property Registries, among other tasks. Out of 17,353 employees in the public service, just 73 are classified as Information Technology (IT) professionals.”

It added that transparency surrounding construction permits and government procurement was “particularly low”, but the IDB suggested that blockchain technology “presents a unique opportunity for a country such as The Bahamas to modernise its property registration system by adding an extra layer of security, therefore improving trust in the system”.

“Availability and quality of data has been a concern for the government, and a limitation to take policy and management decisions, the IDB study added. “Data has become the centre of policy decisions, and a growing economic activity is being built around it.

“For the government, the possibility of counting on digital, reliable, timely, accurate, updated and integrated data opens endless possibilities to design policy and manage initiatives based on data.

“Equally important, it allows the government to apply artificial intelligence techniques to that data and use predictive analytics to anticipate citizens’ needs or to better allocate resources in security, health and inspection tasks.”

government’s proposed 12 percent VAT rate.

“There is tremendous anxiety in our business communities over what WTO means. There just isn’t sufficient information,” said Mr Maura, warning that keeping the private sector “on the outside” will only create more anxiety.

BPL targets $2m monthly VSEP savings FROM PAGE ONE BPL gave employees until 4.30 pm on June 8 to respond to the VSEP package. Mrs Osborne said the staff reduction will save BPL between $1-$2m per month, or $12-$24m per year.

The business plan produced by BPL’s former manager, PowerSecure, called for 233 persons to be separated in the first phase, and Mrs Osborne said yesterday: “It is something we are still looking at. We are in the process of updating the business plan and we have not finalised that as yet.

“We will look at the various departments and determine which employees are critical to the business at this stage, and who we are not prepared to release in this exercise.” She added that BPL has a budgeted figure for the VSEP exercise, but declined to disclose it.

“We know that we will be saving a few million every month with the reduction in staff numbers, bearing in mind we have 1,100 staff. For each month that we have the reduced number we would save approximately $1-$2m per month,” Mrs Osborne said.

“Bear in mind we have to look at the exact number of persons released, and when we do we realise all of the benefits and pensions. Any employees we retain, we bring them back for a certain number of months so we reduce the cost to the company.”

Paul Maynard, the Bahamas Electrical Workers Union’s (BEWU) president, told Tribune Business: “The process seems to have went well. People who wanted to go apply, it is what it is. At least you’re kind of leaving on your own terms.

“There were 319 people who applied. There are people who have been there 25 years, and the job can put a lot of pressure on you. At some point you have to move on; you have to walk away.”

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Friday, June 15, 2018, PAGE 5

DPM: WE MUST ADDRESS ‘UPSIDE DOWN’ ECONOMY

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE deputy prime minister yesterday said “structural adjustments” and “a cultural shift” are needed to address The Bahamas’ “upside down” economy.

K Peter Turnquest told the National Conclave of Chambers of Commerce that the government remained resolute in its objective to ensure the private sector, and not itself, was the main GDP growth and employment driver.

Reaffirming its ambition to reduce the civil service workforce, he said: “We

K Peter Turnquest

are building training programmes to help transition the civil service and contract workers off the public register. The central government’s wage bill is the single largest recurrent expenditure at $793m.

“The government is currently the largest employer in the country but, as we improve the competitiveness of the workforce and reduce the size of government, we hope to change this, and place the responsibility for job creation, innovation and GDP growth where it belongs; on the private sector.”

He added: Our economic driver equation is “upside

down” and needs to be corrected. The government should take its rightful place as a regulator of the economic space, providing the enabling environment for a healthy private sector and as a service provider of last resort, rather than an employer.

“This, too, takes time. It requires structural adjustments and it also requires a cultural shift. I am confident that together we can overcome, fix the wrongs and build a better, stronger and efficient government machinery, but it does take patience, discipline and sacrifice.”

Mr Turnquest pointed

to the Minnis administration’s $2.6m investment in full-time scholarships for Bahamas Technical and Vocational (BTVI) students as part of efforts to advance this goal. He added that it will improve skills while increasing the Bahamian workforce’s competitiveness.

He added that the government was also focused on improving the performance and revenue yield of state-owned enterprises (SOEs), and reduce their subsidy costs to the government and Bahamian taxpayer over time.

“Twenty-three SOEs account for 15 percent of the government’s total

expenditure. This is unacceptable,” Mr Turnquest said. “In light of the critical priority being attached to fiscal consolidation, such a drain on the public finances must clearly be rationalised.

“The government has already directed each SOE to move towards a costrecovery operating model, which might include a mix of revenue enhancement initiatives as well as measures to reduce expenditures in-line with industry benchmarks.

The SOEs are now articulating strategies that we expect will take them to this optimised point within three to five years.”

Second home ‘havoc’ on triple-digit tax rise FROM PAGE ONE non-Bahamians cannot qualify for the former, they will fall into the “other property” category where the tax rates are much steeper.

The attorney revealed that real estate classified as “other property” is taxed at a rate of three-quarter of one percent on its first $500,000, with a two percent rate applied to its value above this threshold.

And the 50 percent “cap” does not apply.

With the tax rate effectively doubling, the attorney said a $2m vacation home would see its tax bill jump from around $18,000 to $33,000 if the bill is passed as is - a $15,000 or 83.3 percent increase.

They suggested the impact was even more startling for a $10m home, which currently pays $50,000 based on the real property tax “cap”.

With this removed, should the homeowner fall out of the owner-occupied category, the attorney calculated that the tax bill will rise to around $193,000 - a $143,000 or 286 percent increase.

“I do not know if this was an oversight, [but] it has significant implications for the luxury home market,” the attorney said. “I have spoken to several attorneys who all agree that the proposed changes will result in the tax increases as outlined.

“I hope this is all a drafting error and that the government will rectify it in their clean-up in the bills in the House of Assembly.

That said, I have not seen anything to suggest that this was an error or not their intention. Second homeowners keep many of our out island settlements alive.

We cannot tax ourselves out of business.”

With all attention focused on the 60 percent VAT rate hike, the attorney said the real property tax change was a prime example of the “devil in the detail” that was contained the slew of legislative reforms that accompanied the 2018-2019 budget.

They said the main budget communication, delivered by KP Turnquest, the deputy prime minister, had made no mention of the “owner-occupied” definition change, and they queried how many other market-changing reforms were in danger of being missed by the private sector until it was too late.

Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, told Tribune Business that the Government’s planned reforms will likely impact 90 percent of The Bahamas’ second home market.

He branded the “owneroccupied” change’s implications as “ridiculous”, given that the dramatic taxation increase risked undermining The Bahamas’ price competitiveness and driving foreign buyers to rival Caribbean destinations that did not impose such cost burdens.

“That’s bull****. That’s ridiculous,” Mr Lightbourn said. “This is the first time I’m hearing about this.

We’re trying to attract these people here. These folks really can go to the Cayman Islands and Turks & Caicos, and pay no property tax.

“It’s like they [the government] slapped a lot of things together without thinking about it. That’s going to hurt. Most foreigners that buy second homes don’t live in them for more than six months.

“That will affect at least 90 percent of the foreign homeowners, and they’re the ones that pay the taxes by and large. Oh God, I’m thinking of some sales we have now that it could kill.”

Adrian White, head of the Bahamas Bar Association’s real estate committee,

agreed that the Bill’s likely effect was “a real concern” given the “quite severe increase” in tax bills it will produce.

“It looks like the open opportunity for owner-occupied status is being limited to residents in occupancy for six months,” Mr White told Tribune Business. “The overall amounts payable are going to increase quite severely depending on the overall value of the property in question. It’s going to be a big increase if that bill is passed; it certainly would be.”

He added that the bill seemed to be adopting “policies that have surfaced in the past that may not have been as strict and costly as they are in this draft bill”.

“Any time you’re looking at changing the tax rate on a market and industry there’s going to be a lot of push back and concern,” Mr White added of the legislation. “It’s certainly a real concern that needs to be considered, and if it can be passed without taking such a large chunk out of the existing owner market that’s better for the industry and country.

“The immediate impact on the real estate market in The Bahamas is not going to be positive if it [the bill] proceeds as is. It will have a severe impact for existing homeowners who will be looked upon to pay this drastic increase in taxation costs if the bill is passed and becomes legislation.

“There’s a lot there in the details, and with this budget everyone is looking at increased revenue collection. That’s not being left on the shoulder of the tax collector; it’s being put on

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the taxpayer.”

One realtor, speaking on condition of anonymity, questioned whether the “six-month” benchmark for “owner-occupied” status was intended to align real estate with The Bahamas’ financial services strategy of encouraging high net worth clients to use this nation as their primary residence/domicile.

The government has already moved to increase the permanent residency threshold for real estate purchases from $500,000 to $750,000, indicating it wants to attract a higher level of buyers to The Bahamas.

Yet another attorney, in an e-mail seen by Tribune Business, backed the earlier analysis by his colleague in warning that the Real Property Tax Bill “might catastrophically impact

sales to high net worth foreigners, and lower property values in the upper ranges since properties will carry a higher cost”.

Pointing that the tax rate would rise by 100 percent above $500,000, they added: “For example, if an owneroccupied property is valued at $5m, such property would now attract $46,562.50 in

annual taxes ($1,562.50 for the first $500,000 + $45,000 for the next $4.5m).

“In 2019, if the new Bill becomes law, that owner will be paying $93,750 ($3,750 for the first $500,000 + $90,000 for the next $4.5m). This is basically a 100 percent increase in real property taxes.”

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PAGE 6, Friday, June 15, 2018

THE TRIBUNE

Web shop pay cut threat over anti-VAT demo FROM PAGE ONE customer service departments will be closed until 3pm tomorrow [yesterday], and it’s mandatory for all staff to be in attendance.

Staff will be required to sign in before the march, and sign out after the march.”

The memo then reiterated that “attendance is mandatory for persons scheduled to work the morning shift”, and added: “Failure to sign in and sign out will result in a pay cut for the day.”

Sebas Bastian, Island Luck’s principal, declined to comment when contacted by Tribune Business

COMMONWEALTH OF THE BAHAMAS

2013/COM/BNK/90

IN THE SUPREME COURT IN BANKRUPTCY OF ROBERT LITTLE JR.

BETWEEN IN THE MATTER of the BANKRUPTCY OF ROBERT LITTLE JR AND IN THE MATTER of the BANKRUPTCY ACT 1870 NOTICE OF INTENDED DIVIDEND In the Supreme Court of the Commonwealth of The Bahamas held at 3rd Floor Ansbacher Building, in the City of Nassau on the Island of New Providence, Bahamas.

TAKE NOTICE THAT a dividend is intended to be declared in the matter of Robert Little Jr. of Port Nelson, on the Island of Rum Cay adjudicated bankrupt on the 15th day of December, A.D., 2016.

Creditors who have not proved their debts by the 29th day of June, A.D., 2018 will be excluded.

Dated this 15th day of June, A.D., 2018.

PYFROM FARRINGTON CHAMBERS GROSVENOR PROFESSIONAL PARK & MEDICAL CENTRE SUITE #6, SHIRLEY STREET NASSAU, BAHAMAS

about the e-mail. However, one well-placed Island Luck source said that while the web shop chain had “encouraged” staff to participate they had “no knowledge” of the “pay cut” warning and suggested this was not true.

“The staff were encouraged to support the march obviously, as it’s their jobs that are at stake,” the source added. “It was not our march; they just joined an already planned march.

The paid part is not true to my knowledge.”

Ms Lotmore’s memo, meanwhile, told Island Luck and Ultra Games employees to report to four “pick-up” points - the Prince Charles Shopping Centre, Southwest Plaza, Collins Avenue and Boyd Road - depending on which web shop location they worked at.

“You must report to the pick-up point that has the location that you are normally scheduled at,” the memo said. “Buses have been arranged to pick up the staff from four key locations at 6.45am sharp.”

Tribune Business was able to confirm that the correct phone number for Ms Lotmore was listed on the memo, although she was said to be out of office when this newspaper called after 3pm yesterday afternoon. The document, based on this newspaper’s checks, appears genuine.

Island Luck will likely argue that yesterday’s protest was effectively a “working day” for its employees, hence the warning that a day’s pay would

be lost if they failed to show up without just cause.

And, given industry predictions that it will be forced to cut 2,000 jobs and shed 192 locations if the government follows through with its planned tax structure, there was already more than enough motivation for Island Luck and other web shop employees to attend and voice their objections outside the House of Assembly.

While much of yesterday’s protest seemed to be heartfelt, the web shop taxation controversy has become increasingly divisive. The industry’s opponents are likely to seize on the memo as evidence that yesterday’s demonstration was largely manufactured by an alliance between the sector and the government’s political opponents.

Dionisio D’Aguilar, minister of tourism and aviation, last night hit back at the web shops’ lobbying against the new “sliding scale” tax structure by arguing that just five percent of its revenues would attract the highest 50 percent rate.

He used his budget debate contribution to suggest that the taxation structure had been misunderstood, with different portions of web shops’ revenue attracting different rates as opposed to a single rate falling on an operator’s entire revenue.

Mr D’Aguilar said 50 percent of the industry’s $196m in gross gaming revenue (GGR) falls into the lowest tax bracket, attracting the 20 percent rate that the web shop sector and its

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The public is hereby advised that I, LOLITA EVOSE COLEBROOKE also known as LOLITA STORR, LOLITA COLEBROOK, LOLITA EVOSE COLEBROOK, and LOLITA COLEBROOKE of #68 Faith Gardens, Nassau, Bahamas intend to change my name to LOLITA EVOSE COLEBROOKE. 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 the publication of this notice.

Attorneys for the Trustee

MARKET REPORT THURSDAY, 14 JUNE 2018

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

BISX ALL SHARE INDEX: CLOSE 1,919.07 | CHG -0.91 | %CHG -0.05 | YTD -144.50 | YTD% -7.00 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 3.85 1.48 0.19 4.05 8.90 6.60 5.30 11.00 2.71 1.61 8.21 6.10 11.48 7.29 13.67 12.51

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

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 10.90 2.57 1.60 7.55 6.10 11.00 6.32 3.44 12.51

CLOSE 4.50 17.43 9.09 3.85 1.01 0.18 3.10 8.89 6.12 3.85 10.90 2.60 1.60 7.51 6.10 11.00 6.32 3.44 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.05 0.00 0.00 0.00 0.00 0.03 0.00 -0.04 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

CLOSE 100.00

CHANGE 0.00

107.27 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.25 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

107.52 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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 115

1,000

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 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 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 -3.1 13.9 10.7 22.5 17.4 25.5 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% 5.56% 0.00% 3.60% 3.59% 3.12% 5.69% 2.31% 4.38% 1.12% 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

0.000 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

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

consultants suggest is in line with global benchmarks.

He added that six out of the seven licensed web shops fall into the 20 percent category, while the 25 percent, 30 percent and 35 percent rates would each apply to a further ten per cent of industry revenues meaning that 80 percent of the industry’s GGR would come under the four lowest rates.

Mr D’Aguilar’s House of Assembly address suggests the government and industry may be closer than originally believed, and that room for an 11th hour compromise still exists despite threats of legal action.

He added that the web shop sector’s average tax rate was being increased from 11 percent of revenues to 28 percent, which he described as a 150 percent rise - well below the industry’s estimates of increases up to 355 percent.

The Minister, though, argued that the web shop sector was well-placed to bear an increased taxation burden given the $500m in player spend that it attracted in 2017.

“Of that $500-plus million that Bahamians spent on gaming, the seven gaming houses ended up keeping $200m in 2017,” Mr D’Aguilar said. “And this $200m represents an enormous growth in sales since the gaming industry was legalised.

“In 2015, their first year of legal operation, the sales of these seven gaming houses grew a whopping $42m in one year… from $112m in 2014 to $154m in 2015.

“In 2016, their sales grew another $21m to $175m. In 2017, their sales grew another $20m to $195m. And, in 2018, their sales are projected to grow

another $20m to $215m,” he continued.

“Right now, the government earns 11 percent of all gaming revenues and the gaming house operators get to keep the remaining 89 percent. Mr Speaker, this is the crux of the issue. Is the 89 percent that the operators get versus the 11 percent that the government gets… a fair distribution of the sales earned on domestic gaming?

“Is it fair that on the $215m that the domestic gaming business is projected to earn in 2018 the government gets $24m, and domestic gaming house operators get to keep $191m? Is that fair, Mr Speaker... they get $191m... the government gets $24m?”

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.

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 $100m, a rate of 40 percent.

• Over $100m, a rate of 50 percent.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, THELMA PENNERMAN of #57 West View Drive, Freeport, Grand Bahama, The Bahamas, mother of CIARA PENNERMAN intend to change my child’s name to JAZZMA KEIORA PENNERMAN. 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.

NOTICE

NOTICE is hereby given that ELROY JOEL ARTHUR of Geneal Delivery, Airport Corner, Queen’s Highway, Lower Bogue, Eleuthera 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 15th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Financial Controller A Bahamian owned company is seeking a

Financial Controller

Applicants should possess the following qualifications: Knowledge and Education: • An accounting Degree • A minimum of ten years industry experience as a financial controller in managerial capacity.

Skills: • Excellent interpersonal skills • Excellent managerial skills • Strong computer skills • Strong analytical skills • Strong oral and written skills • Able to work in a very dynamic environment Job responsibilities include the following: • Supervising the complete accounting cycle • Preparing monthly financial statements • Co-ordinating all other areas of the business to ensure optimal efficiency • Dealing with all government reporting requirements Interested persons should apply no later than June 20, 2018.

Apply to: DA #119234 c/o The Tribune P.O. Box N-3207 Nassau, The Bahamas

THE TRIBUNE

Friday, June 15, 2018, PAGE 7

Gov’t targets $100m non-VAT revenue rise FROM PAGE ONE

property tax, particularly the tax on foreign-owned vacant land, licensing fees on large commercial vehicles and an increase in other user fees. In total, we came up with about $100m from non-VAT revenue sources.”

Mr Turnquest added that the government had looked at raising the VAT rate to just ten percent, but “ultimately fell on the 12 percent number as it gives us the best chance of arresting the slide, fixing the imbalance and funding priority modernisation and infrastructure projects”.

The 60 percent VAT rate hike is projected to generate an additional $400m in revenue, although many

observers believe this is unlikely due to compliance issues and reduced consumer spending/economic activity as Bahamians adjust to higher living costs.

Mr Turnquest again sought to suggest that the VAT was short-term, and represented the key component in a three-year strategy designed to pay off $360m in unfunded arrears and bring the government’s annual fiscal deficit on target with the 0.5 percent of GDP required by the Fiscal Responsibility Bill for 2020-2021.

He again promised some $100m worth of Customs and Excise Tax reductions at the end of the period, although The Bahamas will have to make such an adjust anyway as part of its accession to full World

Trade Organisation (WTO) membership by late 2019.

“I appreciate that many of these revenue-generating measures are unpopular.

In fact, that might be the understatement of the day,” the deputy prime minister admitted.

“But we are in this together, as we only have one Bahamas, and we must adapt to be successful together. While the business community has been resistant to these changes, we are calling on you all to embrace the notion of shared sacrifice so that we can restore the public finances to a healthy state on a durable and sustainable basis. A healthy public financial position will redound to the benefit of all Bahamians.”

Pegging the central

government’s direct debt at $7.2bn, Mr Turnquest said 14 percent of government revenues were now being absorbed by $381m in annual interest payments on these liabilities.

And, dissecting the $76m in under-budgeting for known spending commitments, he added: “Previous governments have been artificially under-budgeting for contractual commitments, which means vital programmes were under funded and some vendors were simply not paid.”

Citing three examples, he listed: • A $4m government food programme that only had a budget of $2.5m.

• A $6m commitment for Immigration-related software and hardware to support the passport office

was never specifically budgeted for.

• A $10m commitment for software and hardware upgrades to modernise the Department of Inland Revenue was never specifically budgeted for.

“Our fiscal state of affairs has been building from years of fiscal hocus-pocus and hide the debt,” Mr Turnquest said. “Simply put, the chickens have come home to roost and unless we were willing to risk another downgrade to total crap bonds, with our ability to borrow in crisis evaporating, we had to address the problem.

“I would love to pull the magic rabbit out of the hat or push the liabilities further down the road, but that is simply not possible or responsible. Further,

with interest costs eclipsing $381m we just cannot afford any more large borrowings.”

He continued: “debt levels have been continuously climbing for the past ten years - increasing by 160 per cent between 2008 and 2017. At $1.09bn, debt service today is 8.3 percent of GDP. Just last year, interest on the debt increased by $89m.

“The corrective actions we are undertaking with the 2018-2019 fiscal plan might be hard and painful, and require shared sacrifice, but they are necessary.

And they are made on our terms, not by the dictates of external actors, whose mercy we must subject ourselves to.”

IMF: Tax cuts boosting US now but will hurt growth later WASHINGTON Associated Press THE International Monetary Fund said yesterday that tax cuts will help fuel the US economy this year and next. But it warned that growth after that will slide to levels just half of what the Trump administration is forecasting.

In its annual assessment of the US economy, the 189-nation IMF released a critical report that warned of adverse consequences from a number of administration policies, including its plans to impose punitive tariffs on major US trading partners in an effort to reduce America’s huge trade deficits.

IMF Managing Director Christine Lagarde said that a trade war “gives no winner and we find generally losers on both sides”.

She encouraged the United States to “work constructively” with its trading partners to resolve disputes, refrain from imposing tariffs and avoid a tit-for-tat trade war in which other nations retaliate by enacting tariffs on US products.

“The negative impact on the global economy would be serious,” Lagarde told reporters at a briefing.

The IMF report marked the harshest assessment the lending agency has ever produced assessing the economic policies of its largest member country. It elicited a quick response from the Trump administration.

“We differ significantly on the medium term and long-term projections, The Treasury Department said.

“The Treasury Department believes our policies, including the productivityboosting mix of tax reform and regulatory relief, will result in more sustainable economic growth.”

Lagarde said the IMF believed the administration’s economic policies could result in higher trade deficits in the near-term by driving up US domestic demand and making the dollar stronger. A stronger dollar makes imports cheaper for US consumers while making US exports more expensive on overseas markets.

She said the tax cuts, which would lead to a higher budget deficit, could result in a faster rise in inflation that would force the Federal Reserve to push interest rates up more quickly. That might result in increased instability in US and global financial markets.

The IMF projected US growth will hit 2.9 percent

this year and 2.7 percent next year. Both are significant increases from last year’s 2.3 percent expansion.

However, after an initial boost from the $1.5tn tax cut package, the IMF forecasts growth will slow steadily in future years, dropping to 1.4 percent in 2023.

This forecast would be just half of the three percent growth target that the administration has said will be produced with its policies.

The IMF report was highly critical of Trump’s trade policies in particular. The administration has imposed punitive tariffs on a number of countries to slow imports of steel and aluminum and has threatened to raise tariffs on up to $150bn in Chinese goods in response to complaints about China’s trade surplus and technology policies. The administration is expected to release a list of $50bn in Chinese goods that will be targeted on today.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, THELMA PENNERMAN of #57 West View Drive, Freeport, Grand Bahama, The Bahamas, mother of KERIAN PENNERMAN intend to change my child’s name to DYLAN ADRIAN PENNERMAN. 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.

COMMONWEALTH OF THE BAHAMAS

2018/CLE/gen/00297

IN THE SUPREME COURT

Common Law and Equity Division B E T W E E N COMMONWEALTH BANK LIMITED AND ANTONIA SHANTELL CARASSA KERR TO:

ANTOINIA SHANTELL CARASSA KERR

Plaintiff Defendant

TAKE NOTICE that: 1.

A WRIT OF SUMMONS filed on the 15th day of March 2018 have been issued against you in the Supreme Court of The Bahamas being Action No. 2018/CLE/gen/00297 by Commonwealth Bank Limited, the Plaintiff herein.

2.

AND THAT by an Order made in the Supreme Court by Registrar on the 6th day of June A.D. 2018 in Supreme Court Action No. 2018/ CLE/gen/00297 Common Law and Equity Division, it was ordered that service of the said Writ of Summons and all other pleadings against the Defendant, Antonia Shantell Carassa Kerr be effected by way of this Advertisement.

3.

That the Court further Ordered that the existence of further proceedings be deemed to be served on you by way of similar advertisements.

4.

Please enter an appearance to this action within 14 days of this Notice, in the event of you default in entering such appearance an order will be made and proceedings will be taken as the Court may think just.

Dated the 6th day of June A.D.2018 GRAHAM THOMPSON Chambers, Sassoon House, Shirley Street & Victoria Avenue, Nassau, Bahamas.

Attorneys for the Plaintiff

PAGE 8, Friday, June 15, 2018

STOCKS RISE AS ECONOMY STRENGTHENS, CENTRAL BANKS STEP BACK ON INTEREST RATES NEW YORK Associated Press US STOCKS mostly rose yesterday, as markets get accustomed to the idea of investing with less of a safety net from central banks around the world.

The European Central Bank laid out its plan to pull back from the stimulus it’s pumped into markets, but it also said it plans to hold off on raising interest rates for longer than some investors expected. More evidence arrived that the US economy is improving, meanwhile, which helped send the S&P 500 to its fourth gain in the last five days.

The S&P 500 index rose 6.86 points, or 0.3 percent, to 2,782.49. The Dow Jones industrial average slipped 25.89, or 0.1 percent, to 25,175.31, and the Nasdaq composite rose 65.34, or 0.8 percent, to 7,761.04, a record. Roughly four stocks rose for every three that fell.

For years since the Great Recession, central banks around the world have thrown massive amounts of stimulus at markets, chiefly through the purchase of billions of dollars of bonds each month. That era neared its end after Europe’s central bank said it will begin phasing out its bond-buying programme in the autumn before ceasing it after December.

The European Central Bank also said it will hold off on raising interest rates until at least the summer of 2019, which was more accommodative than some investors had expected.

Its US counterpart, the Federal Reserve, has already halted bond purchases and has increased interest rates seven times since late 2015. Its latest move came Wednesday, when it raised its benchmark rate by another quarter of a

percentage point and indicated two more increases may come this year thanks to the improving economy.

Higher rates can stave off inflation, but they can also hinder economic growth.

“It is momentous because you’re moving to something more normal,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. “At the same time, you’re moving grudgingly toward that. Central banks around the world are going to err toward being more accommodative, and they don’t want to cause a market shock.”

Both the Fed and the ECB have said that their next moves will depend on what the economic data says, and if growth is strong enough, they’ll raise rates more quickly. That could make markets around the world more volatile, Schutte said, as investors handicap what each weekly or

monthly economic report means for interest rates.

On yesterday, the data for the US economy were nearly uniformly encouraging.

Retail sales jumped in May after shoppers spent more at home and garden stores, gas stations and restaurants. It was the strongest gain in six months, and it fits with economists’ projections that economic growth is picking up following a slowdown during the first quarter of the year.

A separate report showed that fewer US workers filed for unemployment claims last week than expected, an encouraging sign for the labor market.

The yield on the ten-year Treasury fell to 2.93 percent from 2.98 percent late Wednesday. It gave up gains from the prior day, when the Federal Reserve surprised some investors by speeding up its timetable for rate increases.

Lower interest rates can

hurt banks by crimping the profit they make from making loans. Financial stocks in the S&P 500 fell 0.9 percent for the biggest loss among the 11 sectors that make up the index.

On the winning side were dividend-paying stocks, whose payouts look more attractive when interest rates are falling. Utilities, telecom stocks and realestate investment trusts were among the top-performing sectors in the S&P 500.

European stock markets rose more than US indexes, with France’s CAC 40 rising 1.4 percent and Germany’s DAX up 1.7 percent. The FTSE 100 in London gained 0.8 percent. In Asia, Japan’s Nikkei 225 index dropped one percent, South Korea’s Kospi sank 1.8 percent and the Hang Seng in Hong Kong lost 0.9 percent.

Stocks from developing economies continued their struggles, which have

been compiling since the spring. Investors worry that higher US interest rates will hurt emerging-market economies.

The dollar rose to 110.57 Japanese yen from 110.55 yen late Wednesday. The euro fell to $1.1591 from $1.1773, and the British pound fell to $1.3281 from $1.3358.

In the commodities markets, benchmark US crude rose 25 cents to settle at $66.89 per barrel. Brent crude, the international standard, fell 80 cents to $75.94.

Heating oil fell three cents to $2.16 per gallon, wholesale gasoline dropped three cents to $2.09 per gallon and natural gas was close to flat at $2.97 per 1,000 cubic feet.

Gold rose $7.00 to settle at $1,308.30 per ounce, silver gained 27 cents to $17.26 per ounce and copper slipped three cents to $3.22 per pound.

THE TRIBUNE

Supreme Court addresses question of foreign law in US courts WASHINGTON Associated Press NYET. Non. Nein. No. That’s the answer the Supreme Court gave yesterday to the question of whether federal courts in the United States must accept statements from foreign governments about their own laws as binding.

Justice Ruth Bader Ginsburg wrote for a unanimous court that a “federal court should accord respectful consideration to a foreign government’s submission”, but is not required to treat it as conclusive.

Given “the world’s many and diverse legal systems and the range of circumstances in which a foreign government’s views may be presented”, there is no single formula on how to treat the information a foreign government provides, Ginsburg wrote.

Ginsburg said the appropriate weight given to a government’s statement in each case will depend on the circumstances. Among the factors that US courts should weigh in looking at what a foreign government has said about its own law are: the statement’s clarity, thoroughness and support as well as the transparency of the foreign legal system and the role and authority of the statement’s author.

The ruling came in a case that involves trade with China, a class action lawsuit filed by two US-based purchasers of vitamin C: Nacogdoches, Texas-based Animal Science Products and Elizabeth, New Jerseybased The Ranis Company.

The companies sued vitamin C exporters in China.

They alleged the exporters had violated US antitrust laws by fixing the prices and amounts of vitamin C exported to the United States.