business@tribunemedia.net
WEDNESDAY, DECEMBER 8, 2021
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IMF to Bahamas: ‘Pre-empt’ on corporate income taxes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas has been urged by the International Monetary Fund (IMF) to “preempt” global tax pressures by imposing a corporate income tax designed to suit its own purposes. The Fund, in a report that has generated much political controversy, asserted that “the balance firmly tilts” in favour of The Bahamas getting out ahead of the G-20 and Organisation for Economic Co-Operation and Development (OECD) push for a 15 percent minimum global corporate tax rate. Suggesting that The Bahamas “impose that same level of taxation” for itself, the IMF said that while this would impact the domestic economy it would also ensure all corporate income tax revenues went to the Government here rather than their counterparts abroad.
• ‘Balance firmly tilts’ on introducing this levy • Personal ‘high earner’ income tax also urged • Otherwise companies switch profits to wages And it warned that delaying, or “abstaining”, from a corporate income tax could “pose reputational risks that can jeopardise the economy”. While Tribune Business has seen documents that back this finding, well-placed sources aware of the IMF report yesterday revealed that it also recommended imposing a personal income tax on so-called “high earners”. This was urged on the basis that Bahamian companies could seek to avoid/ evade a corporate income tax by switching their profits to salaries paid to shareholders,
senior executives and upper management, thus requiring that both company and personal income be taxed. “To the extent that others impose a minimum tax on payments to, or profits in, The Bahamas, it would be in The Bahamas’ best interest to preempt by imposing that same level of taxation itself,” the IMF urged. “In principle, this would have the same effect on the activity in The Bahamas, but the revenue would accrue to The Bahamas rather than governments abroad. However, the global minimum tax per
SIMON WILSON se can affect the behaviour of multinationals. “The trade-offs manifest themselves as follows. Imposing a corporate income tax may drive away some activities, while abstaining from imposing a corporate income tax deprives The Bahamas of revenues and poses reputational risks that can jeopardise the economy.”
SEE PAGE 5
Cruise port’s $25m IPO ‘not for the quick buck’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS were yesterday told the $25m initial public offering (IPO) of a 49 percent stake in Nassau Cruise Port’s operator is “not for someone looking to make a quick buck”. Michael Maura, the cruise port’s chief executive,
• No investor dividend before 2025 as long-term play speaking to Tribune Business before today’s IPO launch, said it should be viewed as a stable “longterm investment” given that the offering memorandum discloses that no investor
dividends will likely be paid before 2025. Urging Bahamian retail, or individual, investors to “have their eyes open” and ensure the IPO matches their risk appetite by fully reading the offering documents,
he reiterated: “This is not a short-term win. If someone is looking to make a quick buck, this is not the place to do it. In my opinion, this is a sustainable long-term investment.” Bahamian investors are being offered the chance to acquire shares in the Bahamas Investment Fund (BIF), a mutual fund or pooled investment vehicle that will
SEE PAGE 4
Cable loses challenge to Brave ‘ad’ blocking By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas’ legal challenge to a regulatory decision forbidding it to broadcast an advertisement that allegedly defamed the Prime Minister was this week dismissed by the Supreme Court. Justice Indra Charles, in a December 6, 2021, ruling found that the Utilities Regulation and Competition Authority’s (URCA) decision to block the advertisement’s screening was “reasonable in all the circumstances” given that damage that may have been caused to Philip Davis QC and the Progressive Liberal Party (PLP).
Dismissing the BISXlisted communications provider’s Judicial Review bid, she concluded: “It cannot be said that undue potential defamation of the character of the complainants on the primary television provider in the jurisdiction does not rise to the standard of serious and irreparable damage.” She found the defamatory risk was “a sufficient reason” for URCA to issue the interim Order blocking the advertisement’s screening, and rejected arguments by Cable Bahamas’ attorney, Khalil Parker, that the order was illegal because it did not state when it would end.
SEE PAGE 8
‘No luxury brands’ for cruise port’s offering By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port’s operator yesterday said it continues to target a $400m increase in annual passenger spend while making its retail and food offerings stand out from the crowd. Michael Maura, the Prince George Wharf operator’s chief executive, told Tribune Business that it hoped the new infrastructure, combined with additional entertainment and attractions, will help raise per capita cruise passenger spending by another $100
compared to the $55-$60 yields achieved pre-COVID. Optimistic that the revived waterfront will entice more passengers off their vessels in port, he added: “If we can get $100 more from these visitors, which is not more than is spent in St Maarten and St Thomas, based on 4m passengers a year that’s $400m in additional income. It’s going into the pockets of taxi drivers, straw vendors, food and beverage; everyone else.” The Nassau Cruise Port chief said the facility is also seeking to differentiate its retail and restaurant offering from what exists at Atlantis,
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Nassau ‘leads Americas’ on cruise ship port visits • ‘We’re well on way to climbing out’ as IPO launches today • Passenger volumes to reach 86% of pre-COVID in 2022 • All $244m debt financing raised for port’s transformation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port is handling “more cruise ships than any port in the Americas”, its chief executive said yesterday, adding that “we’re well on our way to climbing out” of COVID’s devastation. Michael Maura, speaking to Tribune Business ahead of today’s $25m initial public offering (IPO) launch to Bahamian investors (see other article on Page 1B), said the country’s main cruise gateway was dealing with “well over” 20 vessel calls per week in comparison to the Port of Miami’s 15-16 visits. But, disclosing that Nassau Cruise Port has taken “a very conservative approach” to its near-term performance forecasts, he added that it anticipates recovering 86 MICHAEL percent of pre-COVID MAURA passenger volumes in 2022 with some 3.3m persons passing across its docks. This is projected to rise to 3.7m passengers in 2023, with both figures based on 80 percent cruise ship “occupancy” levels, bringing Nassau’s volumes back close to the 3.85m visitors seen in 2019 prior to the COVID-19 pandemic. Asserting that Nassau Cruise Port’s business levels are on “an upward trajectory”, the
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PAGE 2, Wednesday, December 8, 2021
THE TRIBUNE
TECHNOLOGY PROVIDER EYES MORE EXPANSION A BAHAMAS-based technology provider is targeting further Caribbean expansion after growing from just two staff to 100 employees during its first ten years in existence. Cloud Carib, which was founded in the fall of 2011, is celebrating its growth from a technology start-up to fully-fledged enterprise with a global reach thanks to its custom solutions in the areas of data sovereignty and cybersecurity. “This really started because I saw a need that wasn’t being filled in the local market,” said Cloud Carib founder and chief technology officer, Stelios Xeroudakis. “I realised early on that there were several businesses - particularly in the finance industry - that needed not only vendor support in the technology space, but who were looking for ways to improve their international compliance and grow their organisations as well.” Mr Xeroudakis, who has more than two decades of technology industry experience, teamed-up with Bahamian business owner, Alana Wheaton, to turn his start-up dreams into reality. “I was immediately impressed by, not just his knowledge of the industry, but the passion he had,” Ms Wheaton said. “He did an excellent job of articulating the potential he saw for technology growth, not just in The Bahamas but the region, and we’ve been working to meet and exceed that vision for ten years.”
“We’re very excited about the future,” said company chief executive, Scott MacKenzie. “Already we have expanded into Barbados and Jamaica, with new partnerships being built in other regional markets like Guyana and Trinidad. As we continue to grow, we hope to attract even more of the region’s brightest minds to propel Cloud Carib forward for the next ten years and beyond.” In 2014, after only three years in business, the company became the first cloud service provider in the Caribbean to achieve VMware vCloud Powered certification. Two years later, Cloud Carib was selected as the 2016 Veeam Impact Partner of the year, an award which it won again in 2020. In 2018, Cloud Carib was recognised with the Change Agent award for a cloud service provider (CSP) by Talkin’ Cloud, due to its use of technology to effect advances within an undeveloped community, geography or market segment. After making its 2018 entrance on the Managed Services Provider (MSP) 501 list at number 160 worldwide, Cloud Carib’s ranking jumped to number 33 the following year, and rose further to leave it in 28th position after just three years on Channel Futures’ MSP listing, making it only one of two Caribbean MSPs to be counted. Through its support of educational programs such as BETA Camp Bahamas,
CLOUD Carib and their new Centre of Excellence pictured at their main location in Nassau Bahamas.
Crypto Chicks and Girls in ICT, Cloud Carib has been working to facilitate learning opportunities for young Bahamians as well as provide technology support for Bahamian entrepreneurs. Through its recentlyestablished Centre of Excellence, the company is broadening its support to provide a modern, secure facility where technology professionals from the Bahamian Developers Association and groups such as FEMSTEM can collaborate and learn from each other.
ENGINEERING WORKSHOP HELD BY WORKS MINISTRY THE MINISTRY of Works teamed with engineering firm, Simpson Strong-Tie, to host a structural and civil engineering workshop for the public and private sectors at BAIC’s Training Room yesterday. Pictured speaking is Bradley King from the Ministry of Works’ engineering department. Photos:Patrick Hanna/ BIS
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Wednesday, December 8, 2021, PAGE 3
ALMOST 4,000 COLLECTED NIB BENEFITS WHILE STILL WORKING By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said he has been informed that almost 4,000 persons were illegally collecting jobless benefits during COVID-19 while still employed Myles Laroda, minister of state in the Prime Minister’s Office with responsibility for the National Insurance Board (NIB), said “no decision” on what will happen to those caught “double dipping” - including whether
they will be required to pay the monies back - has been taken. And he indicated that the Government and NIB were grappling with other COVID-related issues, namely whether long-furloughed workers who have now been made redundant can claim full unemployment benefits from the social security scheme given that their contributions are not up-to-date. Referring to “some issues with Atlantis”, Mr Laroda explained: “Employees who have been terminated, the Act would require that for you to benefit or collect
MYLES LARODA unemployment benefits, you would have had to have made contributions for the 52 weeks previous.
“Well, we have individuals who were off for over a year, and even when those redundancies were paid, if you are line staff that would only be in the amount of 26 weeks. So those individuals were not working. When they did get their severance, only 24 weeks worth of contributions were made, so they left at a deficit. “So that’s going to be a policy decision that the Government will have to make with regards to how we are going to bring unemployment relief to individuals who really were not physically on the job.” Mr Laroda said there are “thousands” of
individuals caught in this situation where they were left unemployed, but did not make enough contributions to qualify to receive NIB benefits. As for potential fraud, he added: “My advice that I would have received was that there were over 3,000, and almost 4,000, people who NIB would have found out from contributions that were made on their behalf from their employers, and that’s why we said they were collecting benefits while they were not legally able to do so. “It’s an ongoing issue because, yet again, we’re talking about individuals
who would have received their redundancy packages and would have been on that list that contributions were made on their behalf. So it’s not fair to them to say that they were double dipping because they were at home, not working. “They got their severance packages. Some of those were garnished by creditors, and so if you got a payment, your contributions were paid, you got nothing from it and you are not eligible to receive benefits from NIB. That is hard to say that is double dipping.”
‘NO DECISION’ ON TIGHTER COVID-19 RESTRICTIONS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said “no decision” has been taken on imposing tighter COVID19 travel restrictions ahead of the Christmas/New Year holiday peak period for tourism. Dr Michael Darville, minister for health and wellness, acknowledged that mandating RT-PCR tests for all incoming travellers might be viewed as excessive, but said: “The reality is the Ministry of Health’s first priority is the health and safety of the Bahamian people. “We have to do what’s best for us to be able to control COVID-19. Meanwhile, it’s important for us
to listen to the stakeholders because we’re trying to juggle the economy while, at the same time, ensuring the protection of our citizens. It’s a difficult thing to do.” Resort owners have pleaded with the Government not to have “a knee-jerk reaction” to the new Omicron COVID-19 variant, and require that all visitors - both vaccinated and unvaccinated - produce negative PCR tests that are more expensive and less readily available. They fear this could deter “a large volume of guests” travelling during the busy holiday period Dr Darville confirmed: “Ongoing discussions are taking place with the private sector, particularly hoteliers, and the Ministry of Tourism so we can strike a good balance.
DR MICHAEL DARVILLE “We are watching everything as it relates to how virulent, and how transmissible, the OMICRON variant is, and our committee will have to make decisions in the best interest of the Bahamian people.
‘ACTION NOW’ ON DORIAN TAX BREAKS EXTENSION By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ABACO’S Chamber of Commerce president yesterday reiterated that residents need “action now” over the extension of Hurricane Dorian-related tax breaks and other relief. Ken Hutton said all the talk and equivocation over how long the extension to Abaco’s Special Economic Recovery Zone (SERZ) should be must end. “We need some action. We need it now. There’s been a lot of talk, and there’s no action and there’s been no results. So, we’re waiting to see what they are going to do as opposed to what they are going to say,” he added. Mr Hutton was responding to Myles Laroda, minister of state in the Office of the Prime Minister, who yesterday said the SERZ will be extended for “as long as those areas remain affected” while offering no specific timelines or schedules.
KEN HUTTON Mr Laroda said: “Until we are at the point that we could comfortably say that all that could be done from a government perspective has been done or a lot of it, then we have to keep it on the radar. Because even though the cameras have left there’s still a lot of people out there still affected by the damages and ravages of Dorian.” Asked whether or not this indicates an indefinite roll over of the SERZ orders, Mr Laroda said: “I didn’t say indefinite; I said until we get a grip of it. I don’t know how long that will be, but I don’t want to put a timeline when we don’t
need it because that would create another problem.” Mr Hutton responded: “We’ve heard a lot. I’m encouraged that the minister and the Government is thinking in that way, but again we have been though this dance many times before. We need to see it in writing, we need to see it legislated, we need to see it in place. “We need to see it now, or as soon as possible, because the current SERZ concessions expire in three weeks and there’s a lot of people that are wondering what’s going on. There’s a lot of people that are trying to make plans. So it’s one thing to say something and it’s another thing to actually do it.” The SERZ orders have been extended three times since they first were enacted in December 2019. The latest extension lasts until end-December 2021. Mr Hutton has asked for a full three-year extension to the SERZ in the recent past, but the Government has not given a response to the Chamber’s request.
MINISTER MEETS BTVI TEAM; TOURS CAMPUS A CABINET minister recently met with The Bahamas Technical and Vocational Institute’s (BTVI) president, Dr Robert W. Robertson, at the institution’s Soldier Road campus. Zane Lightbourne, minister of state for technical and vocational education, was given a tour by Dr Robertson and newly-appointed vice-president of academic affairs, Dr Linda Davis, together with associate vice-president of administrative services, Zakia Winder. The minister was introduced to members of the BTVI management team, including deans and chairs. Dr Robertson said that despite BTVI’s pivot to online learning as a result of the COVID-19 pandemic, there has been growing interest in the institution and, as a result,
PICTURED from L to R are BTVI’s vice-president of academic affairs, Dr Linda Davis; minister of state for technical and vocational education, Zane Lightbourne; BTVI’s president, Dr. Robert W. Robertson; and BTVI’s associate vice-president of administrative services, Zakia Winder. student enrollment has increased. “Recent records reflect that employers are looking for the industry-recognised certifications available at BTVI, and next year will be a very busy period as more
projects are launched,” said Dr Robertson. Mr Lightbourne voiced confidence in BTVI’s mission to provide learning opportunities that will help persons be globally competitive and economically independent.
“We are watching everything and, as things progress, we will have to make a decision very shortly as it relates to what type of testing or whether or not we’re going to tighten testing on our borders.”
As for the tightening of COVID restrictions for the Christmas holidays, Dr Darville did not commit to anything other than to say he is “concerned” about tourists and residents alike following the health care protocols. “It’s important for our citizens to realise that we have this variant that’s out there, and the possibility of it coming into our country is a real threat,” he said. “I’m advising everyone during the Christmas holidays to make sure to wear a mask, socially distance, and to sanitise. These are proven mechanisms to prevent the spread. For us, we have a country and economy to grow. “Our number one industry is tourism. We have to be very mindful of the fact that we are in challenges economically, throughout
the country. We have to pay bills, and we need to ensure that we have a robust tourism sector. But we need to do it in a safe and protective way,” Dr Darville continued. “So again, I’m pleading to the entire nation to practice the proper protocols. As you come together, be mindful that we do have this virus that is out there. We are not out of the woods. We believe that this virus will be around for many years to come, and how we manage it on the ground will determine exactly how we reduce the possibility of community spread. ““We are watching everything, but we have not made any recommendations as to whether or not it’s necessary to tighten anything. As it stands now the numbers are low, the viral load is low.”
PORT AUTHORITY IN FOUR PROMOTIONS THE Grand Bahama Port Authority (GBPA) yesterday announced the promotion of four executives who have been charged with developing a new vision for Freeport’s revival. “We are pleased to recognise our newly-promoted executive team, who are all skilled and talented Bahamian leaders in our organisation,” said Ian Rolle, the GBPA’s president. “We are confident in their ability to lead and share the future of our home here in Freeport. So, today, we wish to applaud the continued excellent efforts of Karla McIntosh, Philcher Grant, Derek Newbold and Nakira Wilchcombe, who have all made valuable contributions to the team in their various capacities.” Karla McIntosh, newlyappointed vice-president of legal affairs, joined the GBPA in September 2010 as a legal counsel and compliance officer. Within two-and-a-half years, she was promoted to senior legal counsel and then, in 2015, to general Counsel. She also serves as secretary
to the Board of Directors as well as holding a position on the GBPA’s regulatory committee. Philcher Grant, in her new role as chief operating officer for the Grand Bahama Utility Company and public affairs, has responsibility for overseeing the water provider, government relations and hurricane preparedness. She joined the GBPA on January 13, 2020, as director of group corporate affairs. Since then, her portfolio has expanded to include disaster restoration planning, metering, billing, management, call centre administration and regulatory compliance. Derek Newbold, chief investment officer, will be responsible for research and analysis, as well as management of the GBPA’s customer relations and business development departments. He also has responsibility for marketing and promotions, and programmes for international and domestic investors through the promotional arm, Invest Grand Bahama. Nakira Wilchcombe, vicepresident of building and
development services, has been a part of the GBPA since 2006. In her new role, she is charged with overseeing environmental regulatory functions, including the management of all matters relating to the development, operation and maintenance of Freeport’s infrastructure. This includes roads, rights of way, public spaces, traffic management, signage, lighting, land-use planning, zoning, mapping and geographical information systems (GIS). Sarah St George, the GBPA’s acting chairman, said: “We are tremendously proud of all their hard work, particularly in the aftermath of Hurricane Dorian and during the most uncertain times of COVID-19. Their commitment has not wavered nor has it gone unnoticed, and we look forward to their role in shaping the future of the GBPA.”
PAGE 4, Wednesday, December 8, 2021
THE TRIBUNE
NASSAU ‘LEADS AMERICAS’ ON CRUISE SHIP PORT VISITS FROM PAGE ONE cruise port chief said the key infrastructure asset has already raised all the necessary $244m debt financing to fund Prince George Wharf’s transformation. The IPO, together with an equivalent $25m equity contribution by controlling shareholder, Global Ports Holding, is all that remains to be placed. With $100m of marine works “already completed” to ensure Nassau can receive ever-larger cruise ships with increasing frequency, Mr Maura said the port has received more than 300 calls from transiting cruise ships (excluding home port visits) since the industry resumed sailing in June/July 2021. “We did 14 in July, 36 in August, 48 in September, 79 in October, 93 in November and, right now, we have confirmed bookings for 110 in December,” he told this newspaper. “You can very clearly see that we’re well on our way to climbing out of a very difficult time.
“Nassau has more cruise ships than any other ports in the Americas. The Port of Miami has 15-16 a week. We’re doing well over 20 per week.” Mr Maura added that the latter figure was comparable to the 20-plus weekly calls handled by Prince George Wharf pre-pandemic. The cruise lines, though, “still have a ways to go” when it comes to returning to the passenger numbers carried pre-COVID. The Nassau Cruise Port said most were over 50 percent loads now, having started at around 30 percent, and said: “We’re seeing occupancy numbers climb, and with each month we see more stops and the occupancy numbers increase. “We’ve taken a conservative approach in how we see 2022. We’re looking, in the first half of the year, at about 80 percent occupancy..... We felt it was better to be conservative in our planned projections. There’s 3.3m passengers forecast for 2022.
“But in this particular case, if you look at the bookings we have today for 2022, if those ships were to sail at 100 percent occupancy we’d have over 4m passengers based on the number of ships that need space,” Mr Maura added. “Bookings are very strong. Bookings for 2023 are higher than for 2022, but our forecast for 2022 is 3.3m passengers and, for 2023, we have 3.7m. It’s an upward trajectory. Everything is lined up for this.” Nassau Cruise Port currently has some 1,260 cruise ship bookings confirmed for 2022, a figure that rises to “close to 1,300” for the following year. Mr Maura said all marine-related construction work will be completed by May 2022, with work on the cruise port’s arrivals building, marketplace, town centre and ground transportation hub set to finish “before the end of the year”. Facilities such as the retail and food and beverage offering;
NASSAU CRUISE PORT Junkanoo museum; coral exhibition; amphitheatre will be developed in 2022, while construction on the port’s western marina and “signature restaurants” will last into 2023. Mr Maura said the IPO’s launch had waited until construction had reached a certain stage so that the mainly-retail investor audience it is targeting could see the project was for real, and witness with their own eyes the tangible progress that has been made. “We wanted to provide comfort and confidence in the investment,” he explained. “Bahamians can come out and see $100m worth of marine works that has been completed. That money has been spent. The industry has rebounded
and we just wanted to give confidence. “We hope Bahamians who are not savvy investors, who have not invested before, will consider investing in this project through the Bahamas Investment Fund, and we wanted to give them an opportunity to see this new wonderful development that is transforming the waterfront. We know now is the right time to do it.” Mr Maura disclosed that “half the money” raised as debt capital had come from foreign investors, which he argued was a further sign of confidence in Nassau Cruise Port, its prospects, and those of the cruise industry and the wider Bahamian economy. “The project has already secured 75 percent of the
CRUISE PORT’S $25M IPO ‘NOT FOR THE QUICK BUCK’
FROM PAGE ONE
collectively own a 49 percent ownership stake in the Nassau Cruise Port, operator of Prince George Wharf. They will not directly hold shares in the operator itself. Shares will be priced at $5 each, with 5m in total offered. The minimum investment is $1,000 in BIF as the offering adopts a ‘bottom up’ approach targeting smaller retail investors first before institutions such as pension funds and insurance companies come into play. CFAL representatives, acting as advisers to Nassau Cruise Port, said the latter’s 25-year concession to operate and manage Prince George, which starts when construction ends in 2022-2023, should provide attractive long-term returns with an “average yield” of 10 percent per annum. This could increase after the
10-15 year mark, as interest costs decline due to debt repayments. Anthony Ferguson, CFAL’s principal, who will also sit on the Bahamas Investment Fund’s Board, told Tribune Business he was optimistic that the IPO will be fully subscribed despite the tight eight working days given to place it. The offering is due to close on December 17, and comes as the approaching Christmas holiday begins to divert attention. “We’re pretty confident it will go extremely well,” he told this newspaper. “It’s an infrastructure play in the largest industry, which is tourism, and the largest infrastructure project since the airport. We think it’s in the perfect wheelhouse for retail investors. “The one caveat is that we don’t expect to pay a dividend until late 2024/2025.
NOTICE
BIG PINE TREE LIMITED N O T I C E IS HEREBY GIVEN as follows:
Persons have to look at their financial situation and make a determination. It’s a long-term investment but, right now, they are getting zero at the bank.” Antoine Bastian, Genesis Fund Services’ principal, and another Bahamas Investment Fund director, said the likely three-four year wait to receive a dividend from the Nassau Cruise Port stood up well against many worldwide infrastructure projects where investors could wait up to 15 years for a return. Mr Ferguson, meanwhile, said the $10m facility being made available by Global Ports Holding, Nassau Cruise Port’s 49 percent shareholder, to enable Bahamians to acquire shares in the IPO will be “primarily reserved” for civil servants and government employees. Angelo Butler, a senior CFAL analyst, said the cruise port’s financial advisers had “reached out to a few other employers” to see if they would be willing to facilitate their staff’s access to the $10m facility
(a) BIG PINE TREE LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
but none wanted to provide a guarantee that would secure repayment of the monies advanced. The $10m facility could potentially enable participation by up to 10,000 Bahamians, based on the minimum $1,000 subscription, and Mr Maura said: “The challenge is, as Angelo articulated, are private sector employers prepared to guarantee the debt. “The hope is that as many people as possible that can invest, and for those who it’s the right investment opportunity, participate, and those that qualify are able to get it to help. It’s just a tough time. Businesses have gone through a very tough time, and very few employers are prepared to guarantee the money to repay the loan. One of the things we do know is that the Government does that, and the Government have indicated they will do that.” Mr Ferguson, confirming that Bahamian investors will pay the same $5 per share price as Global Port Holdings will contribute for
NOTICE ARKONE LIMITED
(b) The dissolution of the said company commenced on the 2nd December, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.
N O T I C E IS HEREBY GIVEN as follows:
(c)
(b)
The Liquidator of the said company is CST Administration (Bahamas) Limited of the Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas. Dated this 8th day of December, A. D. 2021 ________________________________ CST Administration (Bahamas) Limited Liquidator
its matching $25m equity stake, said anything below that price was “de minimis”. He added: “We felt that was a good round number, equivalent to 200 shares.” The CFAL chief also explained why the IPO had been structured such that Bahamians will be investing in the Bahamas Investment Fund as opposed to buying into Nassau Cruise Port directly. Unlike a direct issuance of shares, where persons have to pay a $50 fee to trade them via BISX, he said the fund structure ensures Bahamians will incur no subscription or redemption fees. “We want the investment to work 100 percent for every retail investor,” Mr Ferguson said. And Mr Bastian added that the fund structure “gives a level of comfort and safety to investors” since the BIF will be regulated by the Securities Commission. Owen Wells, attorney and partner at McKinney, Turner & Co, is another BIF director. The Nassau Cruise Port’s success will be driven by the
(a)
(c)
ARKONE LIMITED in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. The dissolution of the said company commenced on the 24th November, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General. The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas
Dated this 8th day of December, A. D. 2021 _________________________________ Bukit Merah Limited Liquidator
money needed,” he added. “We’ve satisfied our debt target, and only the $50m equity raise is left.” Anthony Ferguson, president of CFAL, Nassau Cruise Port’s financial advisers, said that sourcing foreign investor capital had helped to relieve pressure on The Bahamas’ external reserves at a critical time in the COVID-19 pandemic. “The original plan was, given the severe pressure on the US dollar reserves, we felt it necessary to raise some money in the international community that would go towards paying some of the US dollar operating expenses and, on top of that, we were able to raise it cheaper than government paper, so it’s a win-win for Nassau Cruise Port.”
volume of passenger and ship arrivals, rather than visitor spending and yields, unlike many other sectors of the tourism industry. As a key infrastructure asset in The Bahamas’ largest industry, and an effective monopoly with no obvious competition, its income streams should be relatively stable. The cruise lines, due to the US Jones Act, which requires foreign-flagged vessels to visit overseas ports before returning to their US home base, have little choice but to come to The Bahamas for the short three, four and five night cruises. And, as part of their private island deals, they are also required to call in Nassau and Freeport. The IPO’s offering memorandum will be published this morning on the Bahamas Investment Fund’s website, www.bahamasinvestmentfund.net. The IPO is the first in The Bahamas since Arawak Port Development Company’s (APD) in 2011, and the Nassau Cruise Port is likely looking for a similar outcome where 11,000-12,000 shareholders were attracted.
LEGAL NOTICE INTERNATIONAL BUSINESS COMPANIESACT,2000
F.S HOLDINGS ENTERPRISE LTD. NOTICE IS HEREBY GIVEN in accordance with Section 138 (4) of the International Business Companies Act, 2000, as follows: A)
F.S. HOLDINGS ENTERPRISE LTD., is in dissolution under the provisions of the International Business Companies Act, 2000
B)
The dissolution of the said Company commenced on 1st December, 2021.
C)
The Liquidator of the said Company is Amicorp Bahamas Management Limited whose address is: Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas
LEGAL NOTICE
ANCO International (PTC) Ltd. Company No. 1899979 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that ANCO International (PTC) Ltd. is in voluntary liquidation. The voluntary liquidation commenced on 30th November 2021 and Nina Racciatti of Talstrasse 83, 8001 Zürich, Switzerland been appointed as the Sole Liquidator.
Dated this 1st day of December 2021 Sgd. Nina Racciatti Voluntary Liquidator
THE TRIBUNE
Wednesday, December 8, 2021, PAGE 5
IMF TO BAHAMAS: ‘PRE-EMPT’ ON CORPORATE INCOME TAXES FROM PAGE ONE
The Fund added that smaller companies not targeted by the G-20/OECD push for a 15 percent global minimum corporate tax would be impacted by that, and concluded: “The balance firmly tilts towards imposing a corporate income tax.” The Bahamas was among 136 countries who, in early October 2021, signed on to international tax reforms that will see a 15 percent minimum global corporate tax rate levied on the largest multinational enterprises. The OECD/G-20 are hoping that all countries will formally commit to the initiative in 2022, with implementation targeted at 2023. Multiple local observers have previously echoed the IMF’s view that The Bahamas should position itself in front of the G-20/OECD initiative by implementing a low-rate corporate income tax of its own. However, this newspaper’s sources said the Fund went even further and called for a personal income tax to also be imposed on “high earners”. One, speaking on condition of anonymity, said the report - submitted to the former Minnis administration just days before the September 16 general election - called on the Government to “use the opportunity” to review more than just one form of income taxation. “They recommended personal income tax for high earners,” the source said. “If you implement corporate income tax and do not implement a personal income tax for high earners, companies will reduce their profits by shifting it to
salaries in their high corporate ranks. Owners will take it out as expenses as opposed to profits.” Meanwhile, refuting the Government’s interpretation of the IMF report as it relates to VAT, the source added that it never recommended raising the tax rate to 15 percent as the only way to sustain the ‘zero ratings’ and exemptions now set to be repealed by the Davis administration. Instead, they said the IMF had presented the option of raising the VAT rate and eliminating ‘zero ratings’ on the likes of breadbasket foot items and medicines in effect doing both. While the Davis administration has elected to go in the opposite direction by cutting VAT to 10 percent, the source described the IMF advice as “theoretical, not prescriptive”. While the Davis administration has used the IMF report to argue that its predecessor was planning a VAT hike if re-elected to office, they added that discussion of its contents and further analysis was required before any policy decisions could be taken. “It was not to suggest ‘you must do this’; ‘you mustn’t do that’,” they said. “The way to clear this all up is to release the full report, and we’re going to have to look this tax thing squarely in the face. The University of The Bahamas report said this move [the VAT cut to 10 percent] would be detrimental to the fiscal position.” That report said cutting the VAT rate to 10 percent will cause “only slight improvement” in job creation and economic growth,
NOTICE NOTICE is hereby given that MAIMUNA MOHAMED of#7 Manchester Street, Blair Estates, P.O. Box N3623 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 1th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that ROSELINE DAU of Eneas Street P.O Box N-3756 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 8th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that ANDREA AGATHA EUGENE of Fox Hill, Hanna Road, 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 8th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that SHUSHANNA CAREY of P. O. Box N-3719, Golden Sun Drive, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 8th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
while advocating it still “be pursued’. Prepared by the university’s Public Policy Institute for the Ministry of Finance, it also warned that the two percentage point cut planned by the Davis administration would worsen key fiscal indicators such as the fiscal deficit and debt-toGDP ratio. Adding that the tax cut would have no impact on reducing income inequality in Bahamian society, it called for “compensating tax revenue initiatives” to offset the reduction in VAT revenue caused by slashing the rate from the existing 12 percent to 10 percent. “The Government still has to identify policy measures outside of collecting taxes that are due to drive revenues to 25 percent of gross domestic product (GDP),” they said. “That cannot be accomplished on compliance alone. What will be the additional tax measures that yield this type of result? “The mid-term report will start to hopefully flesh out their fiscal plans. The creditors are watching, the rating agencies are watching, and it’s so important to speak with clarity as to how they will meet their deficit and debt targets.” Simon Wilson, the Ministry of Finance’s financial secretary, confirmed to Tribune Business last night that the IMF report had “touched on” the issues of corporate and personal income taxation. Agreeing that “it wasn’t a true holistic review” of
The Bahamas’ tax system, he added that it “looked at a couple of options” and “spoke more” to VAT than any other tax. Focusing specifically on corporate income tax, Mr Wilson affirmed that the IMF’s suggestions were tied to the global initiative. “The caveat was that, given the global pressure, they thought it might be inevitable,” he said of corporate income tax. “The IMF report was really high level, nothing too detailed: You can get money from here, here and here without doing any detailed deep dive.” Mr Wilson said the Minnis administration had concluded talks with the
Deloitte & Touche accounting firm on “the scope” of the work it will undertake to further the study of the Bahamian taxation system it carried out in 2016-2018 at the behest of the financial services industry. He added that the former administration must have asked the IMF to look at the implications of a higher VAT rate given the amount of the report that was dedicated to this. The financial secretary reiterated that higher VAT rates equate to multiple exemptions and zero ratings, pointing to Barbados’ 17.5 percent rate and Jamaica’s 15 percent. Agreeing that further revenue measures are required
to hit the Government’s 25 percent revenue-to-GDP target, Mr Wilson said these would be outlined in the upcoming mid-year Budget. “The process is to broadly indicate areas where you can get increased revenues,” he added. “The presentation takes place, and you start working and consulting on priority areas before the Budget. You do one or two; you can’t do all. We’ve said we need to get more revenue, have to increase it to the 25 percent of GDP target over the next five years, and have to say these are the things we are looking at to get there.”
‘NO LUXURY BRANDS’ FOR CRUISE PORT’S OFFERING FROM PAGE ONE Baha Mar and on downtown Bay Street by focusing on authentically Bahamian offerings. Besides the original 50 Festival Place vendors inherited by the operator, who can all sign a lease and remain, Mr Maura said six larger retail operators - who he did not name - have all been identified. “These are, again, authentically Bahamian but have more capacity,” he explained. “They have distribution, manufacturing and have the ability to put authentic Bahamian product on their shelves and keep it there.” As for the five food and beverage spaces, Mr Maura said the Nassau Cruise Port was seeking to establish a partnership with the University of The Bahamas’ culinary department so “talented Bahamian chefs can go and spend some time” providing authentic local dishes to visitors.
NOTICE NOTICE is hereby given that JACQUELIN ROBINSONNEILLY of #34 Trinidad Avenue & Tobago Cresent, Elizabeth Estate, 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 6th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“We are not satisfied with fried snapper, cracked conch and boil fish even though I love them. You can get that in so many other places. We want to bring an artistic perspective to Bahamian cuisine so that visitors say: ‘This was the best experience of my life’. That’s the branding and reputation that we want to come from these food and beverage spaces,” he added. “Take what’s coming from our seas and land, and make it world class. That’s going to help brand the location and the spend. It’s going to be authentic cuisine. That’s why we don’t have any luxury brands in our space. The luxury brands are at Atlantis, on Bay Street, Baha Mar. “What’s the sense in duplicating what already exists here in Nassau? We want to create something that is unique, something authentic. We have the tenants. We have identified the persons after a yearand-a-half of work.”
NOTICE NOTICE is hereby given that YVETTE ANDREA SCOTTGREENE of South Beach, P.O. Box CB-12676 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 1th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
PAGE 8, Wednesday, December 8, 2021
THE TRIBUNE
CABLE LOSES CHALLENGE TO BRAVE ‘AD’ BLOCKING FROM PAGE ONE “URCA’s amendment to the interim Order only days after the initial one, to stipulate the period for which it would last, suggested that it (URCA) had not made the interim Order arbitrarily,” Justice Charles ruled. “Additionally, in the context of general elections not having been announced at that time, three months was not, in my opinion, an unreasonably long time to have required URCA to complete the investigation.” It is unclear whey Cable Bahamas has continued to pursue the Judicial Review action given that the general election was held almost
three months ago, and thus the need to broadcast the offending advertisement has passed, although it may have been seeking legal clarification on the issues raised. Justice Charles’ ruling disclosed that, ironically, the sage began when Political Communications Advertising (PCA), a company hired by the Free National Movement (FNM) to develop its campaign advertisements, complained to Cable Bahamas on July 9, 2021, over its failure to broadcast the offending segment. Cable Bahamas said it had rejected the advertisement on the basis that it violated URCA’s Code of
Conduct for Content Regulation but, one day later, notified the regulator of PCA’s complaints. “By letter dated July 15, 2021, URCA received notification from Cable Bahamas of a code complaint filed by PCA,” Justice Charles wrote. “The PCA complaint alleged that Cable Bahamas was in breach of the Code by rejecting the advertisement based on Cable Bahamas’ concern that the content ‘bordered on defamation’. “On July 20, 2021, URCA received a complaint in writing against Cable Bahamas on behalf of Mr Davis and the PLP alleging that it was in breach of Clause 6.8 of
the Code by its broadcast of the ad, which they said defamed and slandered Mr Davis. “Additionally, an addendum to the initial complaint of July 21, 2021, alleged that Cable Bahamas also breached Clause 6.6 of the Code when it broadcasted the ad in failing to identify at the beginning and at the end of the ad that it was a political ad and on whose behalf it was being broadcasted.” In response, URCA issued its interim order directing Cable Bahamas to stop broadcasting the advertisement on the basis that it “may be in breach of the provisions of the Code and
that there was a risk of serious and irreparable harm being caused”. Mr Parker, for Cable Bahamas, argued that URCA lacked jurisdiction to issue the interim Order because it was not an “urgent” matter as required by the Communications Act. However, John Wilson QC, of McKinney, Bancroft & Hughes, asserted on URCA’s behalf that the issuance of such an order did not rely on the filing of a complaint - something Justice Charles agreed with. She found URCA could issue interim Orders “of its own volition”, and that this was an appropriate case to do so because of “the risk of serious and irreparable harm” to the now-prime minister and his reputation.
Mr Parker also asserted that “fairness” required URCA to consult with Cable Bahamas before issuing the interim Order, but Justice Charles rejected this, saying: “It cannot be properly implied that there is a duty to consult the licensee or give notice prior to the making of the interim order because to do so would frustrate the purpose of the statute. “It would also defeat the opportunity to remedy the serious irreparable harm which URCA foresees as likely and, indeed, it will render the statutory procedure impotent. In my considered opinion, the failure to consult Cable Bahamas did not amount to unfairness.”