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THURSDAY, MARCH 30, 2023
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dealers Courier firms blocked on Esso fearing rent ‘seven figure’ tax arrears hikes will hit all By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SEVERAL courier companies have been temporarily barred from clearing imported shipments over their failure to pay up to “seven figures” in due taxes to the Government, a top official confirmed last night. Simon Wilson, the Ministry of Finance’s financial secretary, described the situation with the industry as “an ongoing problem” given that operators can quickly build up substantial tax arrears due to the high volume of goods they are clearing on a daily basis. Given that couriers are effectively monies provided by their clients to pay due taxes on trust, he told Tribune Business the Ministry of Finance and Department of Inland Revenue “don’t look very favourably” on those who either fail to pay in full, on time or are guilty of both offences. Describing some firms as “repeat offenders”, Mr Wilson did not identify the culprits, or give specific
• Several suffer import halt on Treasury debt • One confirms ‘issues’ with clearing goods • Top official hits out over ‘repeat offenders’ figures for the sums involved, but told this newspaper the arrears accumulated by individual couriers before a block was placed on their SIMON WILSON activities has run into “seven figures” or millions of dollars. Pledging that the tax authorities will “work through it” to ensure all couriers come into compliance with their obligations, he added that the halt imposed on their activities
until they become current typically never lasts more than “a day or two” because their operations are otherwise completely shut down and they stand to lose clients, their reputation and, potentially, go out of business. Asked by Tribune Business to confirm whether several courier companies have recently suffered Customs-imposed halts to clearance of their clients’ import shipments, Mr Wilson replied: “I think that’s correct. If they owe taxes they are collecting in trust we will hold their shipments until they pay it. It’s probably a variety of things, and this is one of them.” All courier companies were mandated by the Department of Inland Revenue to produce a Tax Compliance Certificate, showing they are current with VAT, import tariffs and other taxes, by March 13, so the recent crackdown could also be related in part to the failure of some to obtain the required paperwork by that deadline as well as pay what is owed to the Public Treasury.
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Bahamas hurricane loss triple that of Caribbean By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS has suffered almost triple the amount of hurricanerelated losses and economic damage compared to that experienced by other Caribbean countries over the past 20 years, it was revealed yesterday. The Inter-American Development Bank (IDB), unveiling a $160m “policy based” loan to finance improvements to this nation’s disaster risk management governance, said more frequent and intense storms have cost The Bahamas, its economy and people some $6.7bn in the
two decades leading up to 2022. It pegged that sum as equivalent to more than 50 percent of The Bahamas’ gross domestic product (GDP), or value of its economic output, whereas the loss and damage suffered by Jamaica and Barbados over the same 20 years was estimated at 17 percent and 2 percent, respectively, of their GDPs. “The economic damage caused by climate-related hazards in The Bahamas, as a percentage of GDP, is higher than in other countries in the Caribbean region. Thus the total damage from disasters in The Bahamas
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Sir Franklyn ‘surprised’ at hint margin talks ending By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FOCOL’s chairman says he is “surprised” that Bahamian petroleum retailers indicated negotiations over a margin increase had ended because talks were ongoing at the Prime Minister’s Office yesterday. Sir Franklyn Wilson, head of the BISX-listed petroleum products supplier that trades under the Shell brand, told Tribune Business he was taken aback by what he interpreted as suggestions from Raymond Jones, the Bahamas Petroleum Retailers Association (BPRA) president, that
SIR FRANKLYN WILSON discussions with the three oil majors and the Government were over. Confirming that executives from FOCOL, as well as Sol Petroleum Bahamas (Esso) and Rubis, were meeting with the Prime
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS Petroleum Retailers Association’s vice-president yesterday said he is “very, very concerned” by a dispute that has left one Esso dealer fearing he has no choice but to “give them back their station”. Vasco Bastian, himself an Esso dealer, told Tribune Business that all the chain’s operators were asking whether they will be hit with monthly rent increases similar to the $11,200 hike imposed on Paul Hepburn, operator of the Oakes Field gas station by the sixlegged roundabout where University and JFK Drives connect. Mr Hepburn yesterday told Tribune Business he had received no warning about the increase, which was imposed for February’s rental payment that is due this week. Documents seen by this newspaper show the Oakes Field rental rate,
with VAT stripped out, increasing by more than one-third or 34 percent from $32,750 in January to $43,950 - an $11,200 rise. However, Valentino Hanna, general manager for Sol Petroleum Bahamas, subsequently explained that February’s rent invoice also now incorporates the monthly electricity bill - which January’s did not. With the Oakes Field station’s Bahamas Power & Light (BPL) for February standing at $5,707, this means that the actual cost increase faced by Mr Hepburn is $5,493 as he previously paid the electricity bill separately. That latter, figure, though, still represents a 16.8 percent increase on January’s rent. Mr Hanna said the extra charge was to finance Sol Petroleum Bahamas investment in the installation of solar panels at Oakes Field, and Mr Hepburn yesterday revealed his contract with the petroleum products
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