06272018 business

business@tribunemedia.net

WEDNESDAY, JUNE 27, 2018

$4.80 Immigration announces ‘tech hub’ work permit * UNVEILS BH-1B PERMIT AT BLOCKCHAIN EVENT * AIMS TO ENCOURAGE TECH FIRMS’ RELOCATION

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Immigration Department has developed the BH-1B work permit to target companies the government is seeking to attract for its “technology hub”, it was revealed yesterday.

Dr Donovan Moxey, who chaired the governmentappointed Technology Hub Steering Committee, told Tribune Business that the new work permit was designed to encourage technology companies to relocate to Grand Bahama using the Commercial Enterprises Act. The permit, first unveiled at last week’s Bahamas Blockchain and Crypto Currency conference, is a critical component to the country’s bid to capitalise

SEE PAGE 6

EU gives Bahamas blockchain opening

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net EUROPE’S failure to account for blockchain technology in its new data protection regime “represents an opportunity for The Bahamas” to capitalise on, a technology executive argued yesterday.

Dr Donovan Moxey, who chaired the governmentappointed Technology Hub Steering Committee, told Tribune Business that last week’s blockchain and cryptocurrency conference had “let the world know” The Bahamas intends to “play a role” in this emerging sector.

Acknowledging that much remained to be done to establish the regulatory, infrastructure and business climate that would attract companies to the government’s proposed Grand Bahama “technology hub”, Dr Moxey said it was already adopting the committee’s recommendations

SEE PAGE 5

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DPM: Responsibility Bill will bridge ‘trust deficit’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE deputy prime minister yesterday admitted there is a “trust deficit” between the government and Bahamian people that he hopes to close with the Fiscal Responsibility Bill’s passage.

KP Turnquest told Tribune Business that poor fiscal management, broken promises and a lack of transparency and accountability by previous governments had created a divide that the proposed legislation will help bridge when it becomes law “as soon as possible”.

He revealed that consultation on the draft bill will close this week, amid hopes it can be brought to cabinet next week and then tabled

K PETER TURNQUEST

* BLAMES FORMER GOVT FOR DIVISIONS * WANTS PASSAGE BEFORE SUMMER RECESS * AGREES CRITICAL TO TAXPAYERS CONFIDENCE

in Parliament “at the earliest opportunity”.

Confirming that several changes had already been made, Mr Turnquest said he was targeting the bill’s passage through Parliament and into law prior to its summer recess or break, given that it would boost business and taxpayer confidence that the government

intends to deliver on its fiscal consolidation strategy.

He described the bill’s enhanced fiscal governance and reporting mechanisms, together with deficit, spending and debt targets it must meet by law, as “a critical control feature” to ensure that the current and future governments do not repeat the wasteful expenditure and borrowing habits of the past.

“We’re about to close off the consultation on that this week,” the deputy prime minister told Tribune Business of the Fiscal Responsibility Bill. “Next week, hopefully, I will bring it to cabinet, and then it will be laid in the House at the next earliest opportunity. After that, I’m hoping [it will pass] next month, hopefully before

SEE PAGE 5

Ex-gaming minister: ‘ideal time’ for lottery

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE ex-minister who oversaw the web shops’ legalisation yesterday said it was an “ideal time” to introduce a national lottery, suggesting it could generate $150-200m per annum.

Obie Wilchcombe, the former minister of tourism, while criticising the government for sharply increasing taxes on domestic gaming, urged it to use provisions in the Gaming Act 2014 to instead pave the way for a national lottery.

“I think what is happening now is a step backward.

We should be giving consideration to what is in the law, and that is being open to a national lottery. This is the ideal time to do it,” Mr Wilchcombe argued.

“The government could in fact become a partner with the gaming houses, meaning that the government will become the owners of the lottery, and the Gaming Board will assist in its management and setting-up.”

Mr Wilchcombe, who had responsibility for gaming under the former Christie administration, argued that a national lottery would not only be an attractive sell to Bahamians but could also capture at least a million

Arawak chair ‘prays’ for late reversal on real estate taxation * FEARS ‘MATERIAL DAMPENER’ FOR MARKET * OVER ‘VAT’ EXEMPT STATUS, $50K CAP LOSS * DEVELOPERS ASSOCIATION IN 11TH HOUR ADVOCACY

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

with Hurricane Matthew at the time having caused $600m in damage to this nation.

“The gaming houses can continue to pay the 11 percent, and the government can get funding from a lottery that is drawn, say every month, two months or three months,” the former minister added.

“When you consider that we have five to six

ARAWAK Homes’ chairman yesterday said he is “praying” that the government will reverse course at the last minute on a “material dampener” for real estate and all related industries.

Sir Franklyn Wilson, pictured, told Tribune Business that the move to treat real estate purchases as VAT “exempt” from July 1, coupled with the effective removal of the $50,000 real property tax “cap” for high-end properties owned by foreigners, represented a “double whammy” for a sector that is vital to the Bahamian economy.

Calling for “common sense to prevail”, Sir

SEE PAGE 7

SEE PAGE 4

* Obie: can generate $150m - $200m annually * And capture one million Bahamas visitors * Urges new revenue, not web shop taxation of the five to six million annual tourists who visit The Bahamas. He added that the revenue generated could be used to fund educational, healthcare, sports and cultural programmes.

“The Minister does need to go back to Parliament,” he explained. “The minister can just sign it into law; whenever he is ready he can just go.” Mr Wilchcombe had raised the possibility of a national lottery in 2016 as a means to help fund hurricane restoration efforts,

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PAGE 2, Wednesday, June 27, 2018

THE TRIBUNE

REALTOR TOUTS BAHAMAS AS STORM RECOVERY HUB A BAHAMIAN realtor is calling for hundreds of acres in inland New Providence to be set aside for a disaster relief and recovery headquarters serving The Bahamas and wider Caribbean.

Mario Carey, founder of Better Homes and Gardens Real Estate MCR Bahamas Group, said his proposal could save lives and millions of dollars during disaster relief operations.

“Disaster relief, rebuilding and recovery have become the single largest cost that The Bahamas, and other countries and island nations in the region, face,” said Mr Carey. “In some places, it has been estimated that countries will have to spend up to 30 percent of their budgets rebuilding from a single natural disaster.”

With warming waters and rising seas associated with climate change creating conditions favourable to stronger storms, their aftermath is likely to impose ever-increasing costs in lives and dollars.

“We saw what happened to places like Dominica and

MARIO CAREY

Puerto Rico after Hurricane Maria. We have seen the evidence of the wrath of storms in Barbuda, Antigua, all across the Caribbean,” added Mr Carey.

“There are parts of Puerto Rico that still don’t have power 11 months after Hurricane Maria struck that island. Everywhere roofs were blown off, airports closed, power lines were down, fresh water a precious commodity, supply routes cut off.”

The cost of rebuilding and returning to a state of normalcy are taxing every

nation impacted by the 2017 hurricane season.

After Hurricane Maria hit Dominica in 2017, that country’s president said the nation would “need all the help it could get from the world”.

Mr Carey believes that help could be as close as The Bahamas. He envisions the storage of disaster relief supplies and rebuilding tools in a cordoned off, and highly protected, minicity in New Providence.

“The interior of Nassau has proved itself to be one of the safest places, if not the safest place to be, during a hurricane,” he explained. “Coastal areas on both coasts have been hit, certain other islands in The Bahamas have been

frequent targets, but the deep interior of New Providence is like a girded cage; a safe haven.”

The government, Mr Carey said, owns thousands of acres, and that crown land could be the site of a massive regional complex in which all Caribbean countries wanting to participate can joint venture with The Bahamas, build a complex and rent entire blocks to nations as their storehouse.

Each participating country would pay rent to the complex, which would operate as an independent body benefiting from dutyfree exemptions on relief and recovery items, but no political interference.

“Imagine if you are on an island 1,000 miles from here and nearly everything has been destroyed, but you have all the supplies you need safely stored off-site,” Mr Carey explained. “You have helicopters for immediate rescue work, tractors for clean-up, generators for power, tents for temporary living quarters, lumber and nails and cement to rebuild, water and non-perishables

to survive and they are all safe.

“Instead of borrowing hundreds of millions and burdening future generations with that debt, you hire ships to transport your own supplies and begin the clean-up and rebuilding. You are not losing months, or longer, as businesses can’t operate, schools remain closed and life comes to a standstill.

You are up and running the rebuilding as soon as the storm passes.”

Mr Carey, who was awarded the first international franchise for Better Homes and Gardens Real Estate, said the idea of Nassau becoming a regional disaster relief hub came to him in two ways.

“The first time I realised we needed a life line for islands - just like we have a safe house for people in crisis - was when I saw how hard it was to rebuild in Long Island, where my family has roots, after Hurricane Joaquin and then the island was hit by Irma,” he explained.

“We had help getting fishing boats back in the

water, thanks to organisations like the chamber and rotary and the national telethon, but that was through the good graces of well-intentioned individuals after the fact instead of planning before the storm.

I want to replace luck and dependence on others’ goodwill in emergency with strategy before the crisis.”

The second time the thought of a joint venture regional hub came to him was when he listened to the prime minister make his budget contribution.

“The country needs new, innovative revenue sources. The regional disaster relief and recovery hub could be one an important new source of revenue,” Mr Carey added.

“There are so many ancillary businesses that could be created around it and to serve it, contributing to real economic growth.

You can only tax so much and then you have to really examine ways to grow the economy. If you can do that and do something worthwhile, you’ve got the best of all worlds.”

Top executive named at Small Business Centre

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government and its partners have named Davinia L Blair as executive director (ED) of the planned Small Business Development Centre (SBDC).

She will head the centre, a partnership initiative with the University of The Bahamas (UB) and Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC), which is designed to build the institutional framework and support for micro, small and medium-sized enterprises (MSMEs) in their initial development stages.

DAVINIA L BLAIR

K Peter Turnquest, deputy prime minister and minister of finance, said: “We are excited to have Ms Blair as

our ED to assist in developing and carrying forward our vision for economic and entrepreneurial development for Bahamians.

“She will be supported by a team of professionals, and will have the necessary resources to ensure the effectiveness and sustainability of the programme, and we anticipate significant results under her leadership.”

Through appointments like Ms Blair’s, Mr Turnquest said, the government and its partners are “making tangible investments in both human talent and treasure to facilitate the growth, development and real economic emancipation of the Bahamian people”.

The SBDC will have links to the Caribbean Small Business Development

Centre Project, through which the Organisation of American States (OAS) is supporting member states of the Caribbean Community (CARICOM) in bolstering their MSME regime.

Ms Blair has a Master of Science Degree (MSc) from the London School of Economics and Political Science (LSE) University of London, and a Bachelor of Arts Degree in International Economics (BA) from the American University of Paris.

She began her academic career at the then-College of The Bahamas, pursuing a degree in Economics. Her private and public sector

experience encompasses the pursuit of economic and national development in the service of various entities, ranging from small businesses to multi-million dollar institutions.

Ms Blair has served as a director of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) for two terms. She most recently served at University of the Bahamas (UB) as the vicepresident of institutional advancement and alumni affairs. While at UB, she also served as secretary for the Canadian Friends of the University of The Bahamas and served on the UB Investment Committee.

THE TRIBUNE

Wednesday, June 27, 2018, PAGE 3

BPL sees minimal vat ‘exempt’ effect

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net BAHAMAS Power & Light’s (BPL) chairman yesterday said the VAT “exempt” treatment for bills under $200 would not be a major cost impact despite the extra administrative complexity.

Darnell Osborne said: “The VAT is a pass through, and so it’s not kept by the company. It’s just charged to the customer

financial personnel to do an analysis. It’s a cost in a sense of having added steps for accountants and the people in the technical areas to separate those customers whose bills are normally under $200 from those over $200.”

DARNELL The deputy prime OSBORNE minister and minister of finance, K Peter Turnand netted off to quest, said the VAT the government. It doesn’t “exempt status” will impact affect us in that regard.

70 percent, or 63,000 of “What it does is put an BPL’s 90,000, customextra step in there for our ers. The former Christie

administration, though, had decided against making electricity bills VAT exempt on the grounds that BPL would have to absorb its “input” payments in the absence of any consumer offset, thereby adding significantly to its costs.

Meanwhile, Mrs Osborne said a system instability expert contracted by BPL is expected to be “on the ground” next week.

Last month, following an island-wide black-out

caused by a lightning strike, BPL chief executive, Whitney Heastie, announced the utility would have to bring in the expert.

BPL blamed inclement weather for a power supply interruption that left the island in darkness for several hours Monday night.

“Lightning affected some equipment, and because of the condition of our system, the entire system shut down. We have a system protection expert who should be on the

ground next week,” said Mrs Osborne.

“These people are very specialised. It takes a lot of time, negotiation and money to secure their services. We have done that and they should be on the ground next week, and they will carry out a system audit and review to suggest what we can do to avoid this type of thing going forward.”

Still, she acknowledged: “It’s not an overnight fix.

It will take some time and money to correct.”

TECHNOLOGY EXECUTIVE IN CALL FOR CRYPTO CURRENCY LEGISLATION STERLING Global’s technology head is urging The Bahamas to adopt cryptocurrency legislation as a key element in plans to establish the nation as a “technology hub”.

Brandon Caruana delivered this message during last week’s three-day blockchain and cryptocurrency conference, which drew hundreds of companies and international specialists to Grand Bahama.

“One of the things we really need is legislation and regulation, both globally and jurisdictionally,” said Mr Caruana. A panel speaker, the Cayman-based

executive presented during the conference’s “Why Invest” session last Wednesday.

With more than 15 years’ experience as an IT industry leader, Mr Caruana has overseen the development

and roll-out of complex technology for Sterling Global Financial.

During the panel discussion, which explored the benefits and challenges of investing in blockchain technology, he appeared alongside other industry professionals and government regulators as he advocated for broad blockchain legislation geared at propelling a crypto currency industry in The Bahamas.

“It is important to engage with regulators, especially local regulators, to ensure that everyone is part of the conversation,” said Mr Caruana. “That will mean

engaging global experts to meet with local regulators and craft a plan that is best suited to the environment we currently have.”

A long-time proponent of blockchain technology, Mr Caruana has helped other governments craft legislation to regulate and navigate the crypto-environment.

The conference focused on the need for legislative adjustments, capital funding and global investment. In hosting the event, the government aimed to promote Freeport as a digital hub, catering to new and innovative technical markets.

Gov’t plans cruise incentive overhaul THE government is planning to overhaul the tax incentives offered to the cruise industry given that all existing deals bar one have expired, a cabinet minister has revealed.

Dionisio D’Aguilar, minister of tourism and aviation, told the House of Assembly during the recent budget debate: “The conundrum remains of how do we work to improve domestic production to facilitate increased cruise visitor spend?

“All but one of the cruise agreements have expired, and the government does

not intend to continue the cruise incentive model that it has operated in the past.”

This model has involved departure tax rebates, where cruise lines are refunded a portion of these payments if they exceed certain passenger arrivals targets.

Some $15m is owed by the government to the cruise lines, and is one of the largest payments in the $172m of “unfunded arrears” that it plans to clear during the 2018-2019 fiscal year.

Mr D’Aguilar said that while The Bahamas

experienced a marginal loss in growth of its cruise business during the 2018 first quarter, “we experienced overall growth last year in the volume of cruise passengers when the region experienced a 3.7 percent decline”.

He added that The Bahamas’ tourism industry performed “exceptionally well” during the first three months of 2018, with stopover visitors increasing by 18 percent and air arrivals at their highest on record.

“This places The Bahamas in third place in the region, after Belize and

the Cayman Islands, which recorded growth levels of 23 percent and 20 percent, respectively,” said Mr D’Aguilar.

“It should be noted that, with The Bahamas receiving at least 1.4 million stopover visitors per annum, this growth is tremendous when compared with that of our Caribbean neighbours.”

Mr D’Aguilar said air arrivals growth supported the 39 percent year-overyear increase in hotels’ room revenue during the 2018 first quarter.

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PAGE 4, Wednesday, June 27, 2018

THE TRIBUNE

Arawak chair ‘prays’ for late reversal on real estate taxation FROM PAGE ONE Franklyn expressed hope that advocacy efforts by the newly-formed Bahamas Developers Association, and major developers individually, would make the government aware that the VAT treatment change was “counter productive”.

In particular, he warned that the VAT “exempt” status for real estate purchases was “highly inconsistent” with the prime minister’s goal of making home ownership more affordable and accessible for Bahamians as it would increase new-build housing costs.

Sir Franklyn spoke out after the VAT “transition notes”, released by the government at the weekend, revealed that it is making no concessions to developers over the reformed real estate “transaction tax” structure.

“We are aware of that information,” he told Tribune Business, “but we are also aware of the fact that several significant developers in the country and, in fact, the Bahamas Developers Association, have been

seeking to encourage the government to revisit this particular thing.

“It remains my prayer that, as late as it might be at this stage, that common sense will prevail and someone would see that what is being announced is counter productive.”

The VAT ‘transition notes’ confirm that all property sales/purchases will now be treated as VAT “exempt”, meaning that developers can no longer recover the tax paid on their “input” costs.

“If you are a developer you may have, or be in the process of, acquiring real property. Transactions involving the sale or purchase of real property are now exempt as of July 1, 2018. Stamp tax is now, however, charged on all such transactions,” the transition notes state.

“All of the VAT you incur in the process of your development is not recoverable, as VAT on any taxable supplies in relation to an exempt supply is not available as an input tax credit deduction.”

Developers had previously warned such tax treatment would mean

“millions of dollars are on the line” as it would be “impossible” for them to claim back the nowincreased 12 percent VAT on their input costs.

The former Christie administration changed the ten percent stamp duty levied on real estate sales to accommodate the current VAT rate, splitting this 7.5 percent/2.5 percent between VAT and stamp duty. But the 2018-2019 budget goes back to the ten percent stamp duty on all real estate purchases over $100,000.

This prompted warnings of increased real estate costs for both Bahamian and international buyers.

Developers currently “net off” the VAT they pay on construction materials, and the likes of contractor, engineer and architect bills, against the “output” tax whenever a property is sold.

But the budget’s altered tax structure, by eliminating VAT, robs developers of the ability to claim back already-paid input tax, thus saddling them with a multimillion dollar increase in development costs that will likely be passed on to purchasers of new housing units.

This, in turn, could depress real estate development activity and have negative consequences for all industries that rely on the housing market

- especially realtors, contractors and attorneys.

Besides the potential hit to the domestic Bahamian housing market, Sir Franklyn yesterday reiterated warnings that changes to the definition of “owneroccupied” property in the Real Property Tax Act threatened to have a similarly negative impact on the foreign second home market.

As previously revealed by Tribune Business, the Real Property Tax Amendment Bill that accompanied the 2018-2019 budget requires “owner-occupiers” to reside in their homes for six months or more per year.

This is a marked change from the current Act, which 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. 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.

But, with the elimination of “seasonal basis”, homeowners will now have to

To advertise in The Tribune, contact 502-2394

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, their properties face being reclassified as “residential property” or “other property”. Since non-Bahamians cannot qualify for the former, foreign second homeowners will fall into the “other property” category where the tax rates are much steeper.

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, meaning the tax rate is effectively doubling.

Explaining the implications, Sir Franklyn told Tribune Business: “For all practical purposes, the cap that has existed on real property tax for high-end homes has essentially also been lifted.

“At my stage I really don’t like to preach doom and gloom, but I just pray that someone will see this combination of policies are likely to be detrimental to one sector of the economy that remains reasonably robust.

“When you add all these things together, I continue to pray that, as late as it might be, that someone might see there’s got to be a better way to solve whatever the problems are.

When you add these two things together it’s a dampener, let’s put it that way.”

Sir Franklyn recalled how his son, Franon, Arawak Homes’ president, had previously revealed that the company’s most popular “home and lot” package that for a three-bed, two bath home - would increase

NOTICE

in price by $23,000 - going from $192,000 to $215,000 - as a result of the budget’s tax changes.

Franon Wilson had previously warned that a “huge” number of Bahamians will thus be priced out of home ownership, with the VAT rate hike and changed real estate taxation structure having “a bigger impact than VAT’s introduction” back in 2015.

Endorsing that analysis yesterday, Sir Franklyn said: “One needs to recognise that any time you do anything to cause the cost of a home to go up $1,000, you guarantee you are moving hundreds of people across the line from being able to qualify to not being able to qualify [for a mortgage], even for the most inexpensive home.”

He told Tribune Business that the budget was incompatible with the Access to Affordable Homes Bill 2018, which was recently passed by Parliament. This aims to provide serviced lots for less than $30,000 to Bahamian home purchasers, with incentives - such as customs duty and excise tax exemptions - provided for a two-year period to persons who construct their own homes on the property.

“They say they wish to encourage home ownership, and the prime minister himself has been vocal in stating that,” Sir Franklyn said. “He’s to be commended for that, but this budget is highly incompatible with that. That’s the bottom line.

“It’s material enough that I’ve got to hope and pray it’s not too late for someone to think after all that this is not likely to have a positive impact, and that it’s worth another look.”

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If this certificate is found, please contact Miss Scavella at 428-1475.

THE TRIBUNE

Wednesday, June 27, 2018, PAGE 5

DPM: Responsibility Bill will bridge ‘trust deficit’ FROM PAGE ONE Parliament breaks. If not, as soon as we return.”

The timetable laid out

by Mr Turnquest will likely reassure fiscal governance reformers, as well as a private sector and taxpayers taken by surprise by the 60 percent VAT rate hike, that the Fiscal Responsibility Bill remains a legislative priority for a government that recognises it needs to deliver on its consolidation targets and promises.

Mr Turnquest yesterday described the bill as a “vital” check on fiscal irresponsibility by future governments, adding that the Minnis administration was “very cognisant” that the legislation’s passage into law would provide greater comfort for businesses and consumers now being called upon to make an even greater sacrifice through higher taxes.

“It’s critical. It forms a part of the overall control features in the budget, and it builds in the confidence for the public that we’re going to do what we say we’re going to do with respect to the strategies

outlined in the budget,” he told Tribune Business.

“It’s a critical component of the overall path, and we want to get it done as soon as possible... We recognise there is a trust deficit that has built up over the years between the public and governments.

“We recognise that we have to build in this kind of information and control legacy that helps to rebuild that trust. We’re committed to being open with the results, and communicate with the public on a regular basis, so they help to keep us compliant, spot trends, and ensure we take corrective action on a timely basis.”

Mr Turnquest did not identify any specific actions that contributed to the “trust deficit”, although he likely had in mind the former Christie administration’s failure to use its VAT revenue windfall for the stated objectives - eliminating the fiscal deficit and paying down the near-$8bn national debt.

Instead, the former government added some $2.2bn to the national debt over a five-year period despite receiving some $1.1bn in

gross VAT revenues during the tax’s first two calendar years, much to the unhappiness of the private sector which had bought into the previously-announced goals.

Both Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, and Carey Leonard, the former Grand Bahama Port Authority (GBPA) in-house attorney, last week urged the government to prioritise the Fiscal Responsibility Bill’s passage to give Bahamians confidence their VAT sacrifice is not in vain.

Mr Myers, in particular, said the bill will introduce checks to prevent misuse of the targeted $400m VAT revenue windfall. He called for it to be “passed in months”, something the deputy prime minister yesterday confirmed it intends to do, given the need for increased accountability and transparency to match the government’s ever-expanding tax take.

“It’s absolutely critical.

This Fiscal Responsibility Bill, that has to happen,” Mr Myers told this newspaper last week. “They [the government] need to be on that like white on rice. That has to happen in months; they need to get that passed in months.”

Mr Leonard added: “The government really needs to get its Fiscal Responsibility Bill through sooner rather than later. That needs to be

passed along with the budget.

“What worried some people is that when VAT was increased more, they thought there would already be Fiscal Responsibility, and there isn’t. It would give more people, especially in the business community, more confidence by passing the Fiscal Responsibility Bill.”

The deputy prime minister, meanwhile, yesterday disclosed that the government had already made “some amendments in response” to feedback already provided on the draft Fiscal Responsibility Bill.

“We are making several adjustments in respect of the feedback we’ve gotten, although I couldn’t say what they are right off,” Mr Turnquest said.

Civil society groups, such as ORG and Citizens for a Better Bahamas, have called for the Fiscal Responsibility Bill to be given “more teeth” in terms of sanctions and penalties that can be levied against governments, ministers and senior officials for repeatedly breaching its targets and mandates.

ORG, in particular, warned that the legislation could be “ineffective” without tougher sanctions due to “The Bahamas’ poor history of non-compliance with similar laws”. It described its main concern as the “lack of codified penalties [and] sanctions” for governments

that breached its targets, or “incentives” that encouraged compliance.

It also called for the independent, five-member Fiscal Responsibility Council that currently has just an oversight and advisory role to have more power to “proactively contribute to fiscal strategy and decisions, and enforce its advice, recommendations and decisions”.

“Throughout the bill there is a noticeable lack of reference to penalties or incentives to encourage compliance and rectify behaviour in the implementation of fiscal responsibility and discipline processes,” ORG said.

“Where there is mention of penalty, said penalties are not defined or codified and are left to ministerial discretion, allowing room for uneven or unfair application, or the perception thereof...

“Given The Bahamas’ poor history of compliance with similar reporting laws, such as Public Disclosure, there is concern that without methods of enforcement there is a risk that the Fiscal Responsibility Bill could ultimately be ineffective despite its thorough reporting mandates and methodically outlined goals.”

The Fiscal Responsibility Bill’s key targets require the government to slash the fiscal deficit to 0.5 percent from 2020-2021 onwards, cutting it

EU gives Bahamas blockchain opening FROM PAGE ONE (see other article on Page 1B) and dedicating resources to develop a “balanced” regulatory framework.

“I think it was very well received, and The Bahamas got a really good benefit from it,” the Mobile Assist president said of the conference.

“One of the things it did for us, the important thing we were sending, was a communication to the world that The Bahamas is focused on being a jurisdiction that is receptive to blockchain and crypto companies.

“It let the world know The Bahamas is going to be a jurisdiction that plays a role with these new companies.

Given that this conference was put on by the Office of the Prime Minister, it demonstrates the government’s commitment that The Bahamas is going to be involved in

this industry in some way.”

The staging of such a conference was among the Committee’s main recommendations, given that it would put The Bahamas “on the map” and draw technology industry interest and attention - especially players in the blockchain and crypto currency space - to the possibility of establishing a base in this nation.

Dr Moxey yesterday estimated that around 15-20 percent of the conference’s 450 attendees were international, including players involved with initial coin offerings (ICOs) and “companies that operate exchanges that were really looking at The Bahamas as a possible destination for” their business.

He added that such companies had found the opportunity to speak to government decision-makers,

officials, regulators and Bahamian service providers invaluable, as they were able to assess “what the opportunity looks like” in this nation.

And, from a local perspective, Dr Moxey said last week’s conference had “opened up eyes to a brand new world”, with Bahamians getting a better understanding of blockchain technology and Bitcoin, how they worked, and potential opportunities they themselves can exploit.

“What I can tell you from working with the government is they are very serious about establishing technology as a third pillar of the economy,” he told Tribune Business.

“Blockchain technology is the low hanging fruit. The question is how do we attract the low-hanging fruit to establish this jurisdiction as favourable to these companies.

“This is not an opportunity you can let bypass you.

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Other jurisdictions will take it instead of you. There’s a couple of other recommendations made that the government is focused on executing as well.”

Dr Moxey said a presentation by Michael Wright, the Bahamas’ Data Protection Commissioner, had identified the European Union’s (EU) new data protection regulation, known as the GDPR, as a potential opportunity because it failed to account for how blockchain technology works.

“Blockchain companies will say why go to the EU with their regulatory framework when we can go somewhere else? That, again represents opportunity for The Bahamas,” he told Tribune Business.

from a sum equivalent to 5.8 percent of GDP in the 20162017 budget year. This means reducing it from near $700m to around $54m over a fouryear period.

The bill’s “first schedule” sets out a “glide path” or “road map” for achieving this, acknowledging - as the IMF stated - that “significant fiscal adjustments” are needed over the next two budget years to hit this objective.

To enable the public sector and wider Bahamian economy “to achieve the fiscal objective in an orderly manner”, and avoid unnecessary shocks, the bill calls for 2018-2019 and 20192020 deficits that “shall not exceed” 1.8 percent and one percent of GDP, respectively.

The first target is what the government is going for this coming fiscal year, aided by the VAT hike.

The bill also sets out a “long-term” target of reducing the government’s direct debt-to-GDP ratio from the current 58 percent to “no more than 50 percent”. The year by which this target is to be achieved has to be set out in the government’s “fiscal strategy report”, which must be submitted to Parliament no later than the third week of November each year.

Legal Notice NOTICE INGA FUND ICON NOTICE IS HEREBY GIVEN as follows:

(a) Inga Fund Icon is in dissolution under the provisions of the Investment Condominium Act, 2014 (b) The dissolution of the said Company commenced on the 27th day of June, 2018 when its Notice of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Brian Jones, Deltec Fund Services Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

Brian Jones Liquidator

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Equity Side

2018 FP/QUI/No. 00148

IN THE MATTER OF THE QUIETING TITLES ACT 1959 AND IN THE MATTER of Petition of William Henry Miller and Maxine Elizabeth Miller both of Harbour Island, Eleuthera, The Bahamas.

AND IN THE MATTER of ALL THAT piece, parcel, or lot of land being Lot No. 42 and measuring 9,000 square feet and situate on Harbour Island, Eleuthera, one of the Islands of the Commonwealth of the Bahamas.

NOTICE TAKE NOTICE that William Henry Miller and Maxine Elizabeth Miller claim to be the owners in fee simple in possession of the land at caption and has made application to the Supreme Court of the Commonwealth of The Bahamas Under Section 3 of the Quieting Title Act, 1959 to have their title to the said land investigated and the nature and extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provision of the said Act. A plan of the said land may be inspected during normal working hours at: (a)

The Registry of the Supreme Court, Freeport, Grand Bahama in the Commonwealth of The Bahamas and at the Chambers of V. Alfred Gray & Company, Harbour Island, Eleuthera;

NOTICE IS HEREBY GIVEN that any person or persons having dower or rights of dower or an Adverse Claim or Claim not recognized in the Petition shall on or before the 07th day of August A.D, 2018, file in the Supreme Court in Freeport Grand Bahama aforesaid and serve on the Petitioners or the undersigned a Statement of their claim as aforesaid on or before the 07th day of August A.D., 2018, or it will operate as a bar to such claim.

Dated this 20th day of June A.D., 2018 V.ALFRED GRAY & CO. Chambers Dowdeswell House Dowdeswell & Armstrong Street Nassau, Bahamas Attorney for the Petitioners

PAGE 6, Wednesday, June 27, 2018

THE TRIBUNE

IMMIGRATION ANNOUNCES ‘TECH HUB’ WORK PERMIT FROM PAGE ONE

on Donald Trump’s recent US immigration crackdown that has impacted the skilled foreign workers technology companies rely upon.

“Immigration announced its BH-1B work permit that is targeted at technology companies that come in under the Commercial Enterprises Act,” Dr Moxey, president of MobileAssist, told this newspaper. “We want companies to look at The Bahamas for relocation when their workers’ US visas expire.”

The new work permit’s rapid development indicates

To advertise in The Tribune, contact 502-2394

the government is moving quickly to implement many of the recommendations submitted by Dr Moxey and his committee in January this year, which set out the broad legislative, infrastructure and enabling environment required to establish Grand Bahama as a potential “technology hub”.

Leading the “immediate opportunities” identified by the committee was its proposal to target US companies who are heavily reliant on the H-1B visa workers impacted by Mr Trump’s recent Immigration actions.

“There are several immediate opportunities that should be explored by the government and the Grand Bahama Port Authority (GBPA) in order to support the establishment of a technology industry sector in The Bahamas,” said its report.

It specifically identified the “recruitment of US companies who want to re-locate workers with soon to-expire or recently expired H-1B visas to The Bahamas. This would represent an immediate positive impact to the Grand Bahama economy,

and would primarily benefit the local economy with respect to opportunities for temporary and permanent housing, transportation, entertainment, restaurants, retail and education, as well as initially provide opportunities for non-technical jobs. There are hundreds of US companies and thousands of highly skilled workers that can be recruited and re-located in a matter of months”.

The idea was also floated at this year’s Grand Bahama Business Outlook by GBPA president, Ian Rolle, a member of the Committee, and who appears to have taken the idea from the report. He described it as a “tremendous opportunity for Freeport to grow its population in a meaningful way, and in a short period of time”.

“Imagine if we had 10,000 of these high-tech persons coming to Freeport. They make on average $86,000 to $90,000 a year,” Mr Rolle said then. “If they spend at least 60 percent of their wages in the communities, that’s about $500m.”

The Trump administration has been making it difficult for persons to apply for, or renew, H-1B

visas, which facilitate the hiring of specialist foreign workers by US companies, and entry of persons with advanced degrees.

Such workers are in high demand among technology companies, and the committee’s thinking appears to be that The Bahamas offers a convenient offshore base in close proximity to the US should such firms have to relocate H-1B personnel or themselves.

“The current cap of H1B visas in the US represents an opportunity for The Bahamas to attract skilled workers and the companies that want to hire them. This could be a great opportunity to re-locate company teams/divisions to The Bahamas who have H-1B visas that are set to expire soon,” the Committee’s report enthused.

However, it immediately noted that Immigration and work permit reforms would be required to facilitate such an effort. The committee suggested that H-1B permit holders “be fast-tracked and receive comparable Bahamas work permits”, provided such applications are sponsored by a company domiciled in this nation.

“The government may want to consider creating a new type of work permit to specifically serve as a fast-track replacement for holders of a current or recently expired (within 12 months, or longer as per Immigration guidelines) of US H1B Visas,” the report suggested.

“The government will also need to create corresponding spousal/partner and dependents residency permits for holders of H-1B Visas.

Spouses/partners should not get work permit status unless they are also employed by the company in a technical area.”

The Minnis administration appears to be following these recommendations to the letter, with the Commercial Enterprises Act - and its liberalised work permit regime - complementing the new work permit in efforts to signal The Bahamas is open to business.

GIBC Digital, the New York-headquartered technology firm, which is promising to deliver a $50m economic impact and 150 jobs to Grand Bahama within three years, entered this nation via the Act. The Act allows senior

foreign management and key personnel to enter The Bahamas and establish physical businesses - in targeted industries only - without possessing a work permit once the venture receives the necessary approvals.

Such a permit must be applied for within 30 days of their entry, and the Bill mandates the Director of Immigration to make a decision on approval within 14 days of receiving the application. Should the director not respond within that timeframe, the work permit is “automatically deemed to have been granted”.

The Act is designed to bring certainty and predictability to the work permit approval process, something often cited as a major impediment to the smooth conduct of commerce in The Bahamas.

The “specified commercial enterprise” legislation is targeted at industries that are foreign exchange earners, and which have been cited by the Minnis administration as part of its economic growth and diversification strategy.

NOTICE

LEGAL NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT, 2000

NOTICE is hereby given that SAINTILFORT EVAN of Soldier Road, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

MISTY RIVER LIMITED

NOTICE IS HEREBY GIVEN in accordance with Section 138 (4) of the International Business Companies Act, 2000, as follows: a) MISTY RIVER LIMITED is in dissolution under the provisions of the International Business Companies Act, 2000. b) The dissolution of the said Company commenced on 25th June, 2018. c) The Liquidator of the said Company is Amicorp Bahamas Management Limited whose address is: Bahamas Financial Centre, 2nd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas.

MARKET REPORT TUESDAY, 26 JUNE 2018

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

BISX ALL SHARE INDEX: CLOSE 1,968.29 | CHG 4.30 | %CHG 0.22 | YTD -95.28 | YTD% -4.62 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 8.98 6.60 5.30 11.00 2.71 1.77 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 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 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 2.00 179.39 157.58 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 4.40 17.43 9.09 4.00 1.01 0.18 3.10 8.89 6.12 4.20 10.90 2.61 1.72 7.87 6.10 11.00 6.32 3.41 12.51

CLOSE 4.40 17.43 9.09 4.00 1.01 0.18 3.00 8.98 6.12 4.20 10.90 2.61 1.72 7.87 6.10 11.00 6.32 3.44 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.10 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 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

106.93 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.36 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

106.57 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

1,380 1,000

117,630

VOLUME

10 NAV 2.15 4.12 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

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 0.231 0.000 0.545 0.679 0.610 0.277 0.631

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 12.2 18.7 N/M 14.1 N/M N/M -3.0 14.1 10.7 24.6 17.4 25.6 7.4 N/M 11.2 16.2 10.4 12.4 19.8

YIELD 1.82% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.56% 3.59% 2.86% 5.69% 2.30% 4.07% 1.07% 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% YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 0.39% 5.05% -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 31-May-2018 31-May-2018 31-May-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

NOTICE Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000, notice is hereby given that:PALE PONNEN SA has been dissolved and struck off the Register pursuant to Certificate of Dissolution issued by the Registrar General on 9th MAY, 2018.

C.B. Strategy Ltd. LIQUIDATOR

THE TRIBUNE

Wednesday, June 27, 2018, PAGE 7

Ex-gaming minister: ‘ideal time’ for lottery FROM PAGE ONE million visitors annually, and say a million buy a lottery ticket together with the local market, that could easily generate significant revenue for the government.

“The approach we are taking now is taking us backwards. You don’t tax one group and predicate it on what their earnings are.

They have not taken into account that these individuals had to pay millions in back taxes and all of their fees.”

Mr Wilchcombe continued: “We started with 16 companies during the regularisation process, and today we have seven left.

They hire more people today than the casinos. The casinos don’t have as many people employed, and they are paying much lower taxes - under ten percent.

“If you want revenue generation, you don’t have to over-tax them. Work with them and create a new segment to earn revenue. I personally believe a national lottery could raise $150 to $200m. We don’t

want to see any mass layoffs, and we don’t want this thing to go underground.

We don’t want it to get to the point where they go online, where only they [the web shops] will benefit.”

Under the new “sliding scale” set to take effect on July 1, web shops will pay a 20 percent tax on up to $20m of their revenue; a 25 percent tax on between $20m and $40m of their revenue; a 30 percent tax on between $40m and $60m of their revenue; a 35 percent tax on between $60m and $80m of their revenue; a 40 percent tax on between $80m and $100m of their revenue; and 50 percent on revenue above $100m.

Three web shop chains - Island Luck, Asure Win and Paradise Games - have already warned that they will terminate workers and close store locations by month’s end as a result of the tax increases. Between the first two combined, around 400 jobs are at stake, although FML Group of Companies has pledged to buck the trend and retain all staff and locations.

This is still some way

NOTICE

NOTICE is hereby given that ZIELA PIERRE of Governors Harbour, 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 27th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that VALDETA HENRY of George Town, Exuma, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of June, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

from the 2,000 jobs, and 192 web shop locations, that a Bahamas Gaming Operators Associationcommissioned study warned would be lost if the government proceeded with its proposed taxation structure.

However, the potential loss of 400 jobs in a society as small as The Bahamas’ will still have a large “ripple effect”, especially on the individuals and families involved. And the situation highlights what may happen in a wider sense with the VAT increase to 12 percent - a move that will likely result in reduced consumer demand and spending.

Such a decline will lead to reduced business sales and revenues, prompting companies in general - not just web shops - to lay-off staff to better align costs with income.

Unemployment increases, further depressing consumer spending, with the result that lay-offs and reduced spending feed off each other in a downward economic spiral.

Still, the web shop industry’s own studies have backed up the government’s

argument that six of the seven operators fall into the lowest 20 percent tax bracket. And, with the same research suggesting a tax rate of between 15-20 percent of gross gaming revenue (GGR) is in line with global standards, the majority of the industry is thus in line with global best practice.

The report by Christiansen Capital Advisors shows that all six of FML, Ultra Games, Asure Win, Island Game, Paradise Games and Chances will largely be taxed at 20 percent - a rate that is some 81.8 percent higher than the 11 percent they currently pay. Only Chances, where a portion of its revenue falls in the 25 percent category, faces a slightly higher overall rate at 88.6 percent.

The data is skewed because the market leader, Island Luck, faces an effective 184.3 percent in its overall tax rate under the new sliding scale structure, taking the overall industry increase to 138.9 percent.

Still, the Christiansen report argued that The Bahamas’ current

LEGAL NOTICE Pursuant to the provisions of Section 138 (8) of The International Business Companies Act, (No. 45 of 2000) of the Statute Laws of The Bahamas notice is hereby given that Roneragh Holdings Ltd. has been dissolved and struck from the Register of Companies in the Registry of Records of the Commonwealth of The Bahamas according to the Certificate of Dissolution issued by the Acting Assistant Registrar of the said Commonwealth on the 12th day of June, 2018.

Edward Riley (Liquidator)

11 percent rate - low by international comparisons - was effectively a trade-off for the web shop chains keeping a higher level of staff and number of locations.

Dionisio D’Aguilar, who currently has ministerial responsibility for gaming, said some web shops were on the verge of downsizing even before

the planned tax increase was announced. The government is arguing that the web shops are using the tax increase as an “excuse” or “cover” for downsizing they would have undertaken anyway as the industry shifts to an online gaming model. This enables them to blame the government for any job losses.

PAGE 8, Wednesday, June 27, 2018

THE TRIBUNE

Another wave of sales leaves GE a vastly changed company NEW YORK Associated Press GENERAL Electric Co is shrinking again, becoming a mere shadow of the globe-spanning conglomerate that it was before the great recession.

GE said yesterday that it will spin off its health-care business and sell its interest in Baker Hughes, which provides drilling services to oil and gas companies.

The moves were announced as GE disappeared from the Dow Jones industrial average, replaced by a drugstore chain. GE was an original component in the Dow back in 1896 and had been a continuous member since 1907. But on yesterday, Walgreens Boots Alliance Inc took its spot in the stock index of 30 blue-chip companies.

The committee that picks Dow components wanted to add a health-related stock to better reflect the overall economy, and one that was stronger.

The news underscored how radically GE — and

THE GENERAL Electric logo is displayed at the top of their Global Operations Center in the Banks development of downtown Cincinnati. A year after taking over an ailing American conglomerate, CEO John Flannery is calving off larger chunks of General Electric, spinning off its health care business and selling its stake in the oil services company, Baker Hughes. the global economy — have changed in less than a decade.

GE traces its roots to Thomas Edison and the invention of the light bulb, and the company grew with the American economy.

At the start of the global financial crisis in 2008, it was one of the nation’s biggest lenders, its appliances were sold by the millions to homeowners around the world, and it oversaw a

multinational media powerhouse including NBC television.

The company became almost unmanageable.

Former CEO Jeffrey Immelt once said its portfolio was too broad and too opaque. “One business had no idea what another business did,” he bemoaned.

Since the recession, the company has been selling assets, with the latest divestitures coming after

a yearlong review by CEO John Flannery.

“Today marks an important milestone in GE’s history,” Flannery said yesterday. He vowed to give the company more of a high-tech and industrial look, and to make GE simpler and stronger by focusing on aviation, power and renewable energy — businesses that he said are poised to grow.

“We have changed many things, but the essence of GE endures,” he said on a conference call with analysts.

GE will sell about 20 percent of its health-care business and distribute the rest to its shareholders over the next 12 to 18 months. It will take up to three years to sell its two-thirds stake in Baker Hughes, valued at around $23bn.

The company said the moves will lower its debt by $25bn and reduce risk.

Standard & Poor’s warned that it could downgrade GE’s credit — already in junk status — by one more notch. S&P analysts said divesting the

health-care business would improve GE’s balance sheet but leave the lessdiversified company more vulnerable to volatility.

Flannery vowed when he became CEO just over a year ago to divest $20bn in assets. The company said those sales are essentially complete.

GE shares jumped nearly eight percent to close at $13.74. It was their biggest one-day percentage gain since April 10, 2015. Before yesterday, the shares had plunged 60 percent since the start of 2017 despite efforts by Immelt and then Flannery to reverse the slide. The slump wiped out more than $160bn in shareholder value.

When Immelt announced last June that he would retire, shares gained four percent but that turned out to be just a pause.

Things got worse for GE in January, when it disclosed that the Securities and Exchange Commission was investigating the company’s accounting after a $6.2bn loss in its insurance business. In April, retirees

and union workers picketed outside GE’s annual meeting.

The company has been plagued by inconsistent results across its sprawling divisions. GE’s aviation business has soared on strong demand for jet engines, but its power unit has suffered declining profit, and GE now plans to pump another $3bn into its GE Capital finance business next year.

On Monday, GE said it agreed to sell its gas-engine business for about $3bn, and it previously agreed to merge its 111-year-old business of building railroad locomotives with Wabtec in a deal to raise $2.9bn for GE. The company is still trying to sell the lighting business that Edison started.

If Flannery’s strategy is realised, the company will shrink to four divisions from eight a year ago. It will be even more removed from consumers, catering instead to other big companies like airplane makers and utilities.

CALIFORNIA LAWMAKERS ADVANCE LAST-MINUTE DATA PRIVACY BILL SACRAMENTO Associated Press CALIFORNIA state senators advanced a last-minute internet privacy bill yesterday ahead of a deadline while acknowledging it would need changes if it becomes law.

The bill would let consumers ask companies what personal data they collect and opt out of having their data sold, among other privacy provisions.

Lawmakers voted to pass the measure, AB375, out of the Senate

Judiciary Committee.

The bill is aimed at keeping a related initiative off the November ballot. Lawmakers negotiated it with San Francisco housing developer Alastair Mactaggart, who spent millions of dollars to place the initiative on the ballot. He said he would pull the measure from the ballot if the bill is signed into law by tomorrow’s deadline to withdraw initiatives.

The bill now moves to the Senate Appropriations Committee, a spokeswoman for co-author Sen Bob

Hertzberg, D-Van Nuys, said. The full Assembly and Senate each plan to vote on the bill tomorrow. Gov Jerry Brown’s office has not said whether he will sign it.

Lawmakers can more easily amend laws they pass than alter voter-enacted initiatives.

Lawmakers say the legislation will affect every California consumer and will likely inform legislation throughout the country.

Mactaggart said he supports the bill and his initiative, though he believes the

legislative process is better tailored for enacting such policy. He said he has been pushing legislators to address the issue.

Those who spoke against the bill, including the California Chamber of Commerce, said they favored it over the initiative and urged future changes.

“Although AB375 is deeply flawed, the privacy initiative is even worse,” chamber lobbyist Sarah Boot said.

The bill has unclear language and could prevent

companies from providing loyalty programmes and notifications to customers, Boot said.

The bill would let consumers ask companies such as Google and Facebook what personal data has been collected, why it was collected and what categories of third parties have received it.

Consumers could also ask companies to delete their information and refrain from selling it.

Companies could offer discounts to customers who allow their data to be sold

and could charge those who opt out a reasonable amount based on how much the company makes selling the information.

The bill would also bar companies from selling data from users under 16 without consent.

Assemblyman Ed Chau, an Arcadia Democrat and the chief bill author, said he doesn’t like the rushed process forced by the ballot measure deadline, but he stressed that his bill gives Californians important privacy protections.