'PRIORITISE' TAX EXTENSION FOR FREEPORT IN 2015

By NEIL HARTNELL

Tribune Business Editor

THE GRAND BAHAMA Chamber of Commerce's president has urged the next government to treat the extension of key Freeport tax incentives, due to expire in 2015, as "a priority" and to end the uncertainty that could stifle much-needed foreign and Bahamian investment.

John Swain, who is also a Deloitte & Touche (Bahamas) accountant and partner, said the impending end to Freeport's Business Licence and real property tax exemptions needed to be resolved "as soon as possible", especially as a major foreign investor had again flagged this up as a 'material risk' to its public shareholders.

New York Stock Exchange (NYSE) lis ...

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Web shop owner in 27m bank rescue

By NEIL HARTNELL

Tribune Business Editor

BAHAMAS-based web shop boss, Craig Flowers, along with BISX-listed Bank of the Bahamas International, were both separately approached to rescue a bust Turks & Caicos bank that required a $27 million injection to recapitalise it, Tribune Business can reveal.

The involvement of Mr Flowers, a well-known businessman and head of the FML Group of Companies, was disclosed in a report to the Turks & Caicos Islands' courts by the Bahamian liquidators for TCI Bank, Anthony Kikivarakis and Mark Munnings, the Deloitte & Touche (Bahamas) partners and accountants.

The report, obtained by Tribune Business, said that "the following persons/entities we ...

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Muscroft, Cowper take top prize at BHA tourney

It turned out that 13 was a lucky number for 25 seasoned and budding golfers, as they walked away with awards at last Sunday's Bahamas Hotel Association's (BHA) 13th Annual Golf Tournament at the Ocean Club Course on Paradise Island.
Despite the threat of inclement weather, a record number of 104 golfers registered to claim bragging rights while helping to raise over $20,000 for student scholarships and a range of programs which BHA is doing in the nation's schools.
"We are most appreciative of the tremendous support from our members, friends of BHA, and of course the golfers for supporting this year's tournament," stated BHA President Stuart Bowe. "The turnout was fantastic. It will go a long way next year toward matching and we hope exceeding the record 12 students who were awarded scholarships this year as a result of previous efforts. The tournament and our auctions have helped to put 81 young Bahamians through college during the past year with scholarships valued at $287,000, "added Bowe.
Tournament organizers Fred Lunn, John Spinks, Ted Adderley, Nelson O'Kelley and Billy Lee commended the golfers for their support, in announcing the winners of this year's tournament at an awards ceremony following the tournament. The tournament was sanctioned by the Bahamas Golf Federation (BGF).
Capturing first place was the team of Peter Muscroft and Doug Cowper which was sponsored by Royal Star Assurance. They were followed by Cliff Petford and Jake Neudorf. Third place honors went to the Royal Bank of Canada team of Phil Andrews and G. Hill. Fred Lunn and Errol Brown took fourth place and were sponsored by the Nassau Paradise Island Promotion Board.
Rounding out the top 10 teams, in fifth place was Roger Chow-How and Eddie Carter. Sixth place went to Andrew Burrows and John Kinger. Taking seventh was Jeffrey Walcott and Tyrone Cunningham representing BTC. Nicholas Knowles and Harrison Collins took eighth. Ninth place went to Jim Wilson and Patrick Knowles representing Scotiabank, and capturing 10th was the team of Nelson O'Kelly and Paul Burke from Kerzner International.
This year's sponsors included: Fidelity Bank, Kerzner International, Royal Bank of Canada, the Nassau Paradise Island Promotion Board, Bahamas Food Services, The d'Albenas Agency Ltd., Scotiabank, Bank of The Bahamas, the Bahamas Telecommunications Company, RoyalStar Assurance, KPMG, Graham Thompson & Co., Restaurants Bahamas (KFC), J.S. Johnson, the Lyford Cay Club, Banca del Sempione, Bahamas Wholesale Agency Ltd., Commonwealth Bank, Caribbean Bottling Company, Bahamas Hot Mix, N.U.A Insurance & Brokers, Deloitte & Touche, Nassau Motor Company, Pigeon Cay Beach Club, Providence Advisors, Wong's Rubber Stamp & Printing, American Hotel Register, Viva Wyndham Fortuna Beach, Sheraton Nassau Beach Resort, Pelican Bay at Lucaya, American Airlines, Bahamasair, Comfort Suites Paradise Island, Treasure Cay Resort, Green Turtle Cay Club, Sandals Royal Bahamian, Ocean Club Golf Course, Nassau Airport Development Company, Island Merchants, Ridge Farms, Pineville Motel, Sunrise Resort & Marina, Blue Lagoon and Dolphin Encounters, Senor Frogs, Diamond's International, Via Caffe, Toads Hall Square Hill Estates, Sands Beer, Jewels by the Sea, Security & General Insurance, Luciano's of Chicago and Old Bahama Bay Resort & Yacht Club.*Look for article images in our Online Gallery section.

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CANADA DOES ALL TO RATIFY TAX DEAL

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE CANADIAN government has completed "all procedures necessary" to ratify the Tax Information Exchange Agreement (TIEA) it signed with the Bahamas last year, Sandra Slaats, a partner in Deloitte & Touche (Canada's) international tax group has told Tribune Business.

Mrs Slaats said: "The Canadian government has completed all procedures necessary to ratify the TIEA. The TIEA will come into force once the two governments notify each other that the TIEA has been ratified. Since we understand from the Bahamas Financial Services Board that the Bahamas has also ratified the TIEA, we expect this to occur ...

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No 'national asset lost' via BTC's sale

By NEIL HARTNELL

Tribune Business Editor

Bahamians "ought not to feel we have lost a national asset" through the Bahamas Telecommunications Company's (BTC) privatisation, a senior accountant said yesterday, pointing out that whatever happened the currently state-owned incumbent would have at least one major 100 per cent Bahamian-owned competitor in a liberalised market.

Raymond Winder, managing partner at Deloitte & Touche (Bahamas), told Tribune Business that what had been ignored in the BTC privatisation debate was that Cable Bahamas was now a 100 per cent Bahamian-owned company as a result of last year's Columbus Communications buy-out, and represented a "thriving & ...

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PUBLIC SECTOR 'NOT TAKING BAHAMAS INTO THIS CENTURY'

By NEIL HARTNELL

Tribune Business Editor

The Government has little choice but to continue privatising key revenue-generating agencies such as the Registrar General's Department, a leading accountant warning yesterday that the public sector was failing to attract "the talent that is needed to take the country into the next century".

Raymond Winder, managing partner of Deloitte & Touche (Bahamas), told Tribune Business that despite the Government's commitment to reducing public sector response times and improve efficiencies, it not appear to "be making the headway we need to make to be more competitive".

Suggesting that this reduced the Bahamas' attractiveness ...

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Unique Canada TIEA comes into force

The Tax Information Exchange Agreement  (TIEA) between The Bahamas and Canada, which could result in greater foreign direct investment and employment opportunities, came into force Wednesday.
Canada's Department of Finance made the announcement yesterday, posting a notice on its website indicating that the agreement was signed.   With the TIEA in effect, it means that Canadian corporations will be able to set up active business in The Bahamas and, once they meet the stringent qualifying standards and tests, take advantage of the special tax incentive.
According to Deloitte Bahamas managing partner, Raymond Winder, this TIEA creates a competitive advantage for the Bahamas compared to Barbados.
"The biggest thing about this is the fact that for years Barbados has had competitive advantage over The Bahamas because it had a tax treaty with Canada which allowed Canadian companies to be domiciled in Barbados and repatriate profits to Canada and pay a small corporate tax in Barbados," Winder said.
"The TIEA allows The Bahamas the same privileges that the Barbados tax treaty allows, the only difference is the Canadian subsidiary doesn't need to incur any tax at all in The Bahamas to get this treatment.   So the TIEA actually puts The Bahamas and other countries that sign TIEAs [with Canada] at a competitive advantage as compared to the current tax treaty Canada has with Barbados."
Getting into some of the legal aspects of the agreement, Higgs & Johnson partner, Dr Earl Cash, honed in on Article 13 of the TIEA.  That article spells out the terms of the agreement's entry into force.  It indicates that activities that either government is seeking information about must relate to matters considered a criminal offense in its own jurisdiction.
Cash also pointed out that the agreement reaches back to cover a taxable period from January 1, 2004.  He said this may have been done to not prejudice Canada's information exchange provisions with The Bahamas against those of the United States, which has tax information exchange provisions with  going back to that time.
Initially singed-off since June 17th, Canadian legislators had to enact changes to its excise laws to bring the TIEA into force. "The Excise Act and Excise Tax Act" amendments received royal assent in Canada on June 26th, paving the way for the TIEA coming into force.
At the time, Canadian-based experts Guardian Business spoke to thought early fall was a likely timeframe for the agreement coming into effect.

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Financial Bowling League

Wednesday's Results
Tyrone Knowles was on fire as he demolished the pins for an outstanding 218 high game and also the three-game high set of 639. In doing so, Knowles led the Fidelity Bulldogs to a 2-1 win over BAF Financial. Stan Bethell was also on top of his game as he toppled the pins for the second high game of 213 and also second high set of 594 to lead the Coca-Cola Strike Force past the Sunshine Insurance team, 3-0. Bethell was assisted by Monique Miller who led the ladies with a 199 game and 543 set. Patrice Archer came in second for the ladies with a 187 game and a 475 three-game set.

Other Scores:
Budweiser Strikers 3, Deloitte & Touche 0
Leno Corporate Services 3,

Forsythe Communications 0

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City Markets owed staff pension fund 500k at end-2009

By NEIL HARTNELL

Tribune Business Editor

Bahamas Supermarkets, parent company of the 11-store City Markets grocery chain, owed the staff pension fund almost $519,000 at its 2009 year-end in unpaid rent for the company's head office, with its financial troubles preventing any contributions by the firm to the plan during the 2007-2009 period.

The audited financial statements for Bahamas Supermarkets 2009 fiscal year are more than a year late, given that the period closed some 14 and-a-half months ago, but they provide a further insight into the problems afflicting the supermarket chain and management's plans to remedy them, the accounts being heavily qualified by Deloitte & Touche ...

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Deloitte & Touche

• East Sunrise Highway and Beach Drive
• Freeport
• Grand Bahama, Bahamas