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THURSDAY, APRIL 25, 2024
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One-month tax certificate to halt ‘bush crack, man gone’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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BAHAMIAN tax authorities yesterday asserted they have “learned from our mistakes” as it emerged companies with outstanding bills are only being issued with tax compliance certificates valid for one month. Dexter Fernander, the Department of Inland Revenue’s (DIR) operations manager, told Tribune Business it has seen too many instances where “bush crack, man gone” and it will no longer issue tax compliance certificates (TCCs) for extended periods of time to companies that owe due taxes to the Public Treasury. Speaking after businesses complained that the onemonth TCC, which they need to clear imports through Customs, conduct other business with the Government and access essential public services simply means “more
bureaucracy and red tape’, he added that lenient approach towards tax dodgers and defaulters has simply not worked. Mr Fernander told this newspaper that previous experience, when TCCs valid for three months were issued to tax delinquent companies, had been that many simply did not follow through on paying their obligations or complying with payment plans. As a result, the Department of Inland Revenue has been left with little choice but to intensify its crackdown and tighten the enforcement net.
“There’s two reasons why someone will only get it for one month,” Mr Fernander explained. “If you got it for one month, that means you have outstanding taxes with one of the regulators; that there is either an outstanding obligation they owe to another of the agencies or they are on a payment plan. If someone is on a payment plan that [the TCC] is issued for one month. “Do you have some outstanding obligations with Customs, Immigration or NIB? It may be that they come back and say they are
waiting for some type of payment plan or we are awaiting payment. If that is the case, it is issued for one month. If someone is in good standing, you get it for three months. “If a person is on a payment plan for real property tax, and real property tax is due on May 2, they will only get a certificate for a month until it is paid. We have learned from our mistakes. We used to issue it for three months, and it was ‘bush crack, man gone’. We learned from those trends and we will not issue it for a long period. That’s what we’re doing. We’ve changed our behaviour at the Department.” Businesses must be compliant with a whole host of taxes, including VAT, real property tax and Business Licence fees, to obtain a TCC along with National Insurance Board (NIB) contributions and Immigration work permit fees. Without such
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Minister’s $185k CARIFTA ‘surplus’ came from 360% subsidy overshoot By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday asserted that last year’s CARIFTA games generated a $185,503 “net surplus” even though this was only made possible by a taxpayer subsidy over four times’ higher than budgeted.
Mario Bowleg, minister of youth, sports and culture, sought to quash further debate on the cost overruns incurred by the Bahamian people in staging the regional track and field championships by telling the House of Assembly that this figure - set out in the “unaudited” accounts for the event organiser - “settles the matter of any overspending”.
However, his address neglected to point out that the CARIFTA Games Company’s financial statements - which have yet to be tested and verified for accuracy by an independent external auditor - show that this “surplus” was only made possible via a $6.433m subsidy provided by
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MARIO BOWLEG
Gov’t overhauls energy to aid $1bn BPL rescue By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE GOVERNMENT yesterday unveiled a major overhaul of the country’s energy regulatory regime to provide a platform for rescuing Bahamas Power & Light (BPL) from its $1bn debt and investment hole. Jobeth Coleby-Davis, minister of energy and transport, tabled a new Electricity Bill that will facilitate BPL outsourcing “functions and assets” to subsidiaries that it wholly or partially owns along with a Natural Gas Bill that introduces an oversight regime for BPL’s planned switch to cleaner, more sustainable and potentially cheaper
JOBETH COLEBY-DAVIS liquefied natural gas (LNG) for electricity generation. Both Bills are set to be debated in Parliament next week, with well-placed Tribune Business sources suggesting the Government wants the legislation
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GBPA seeks to reassure on on ‘unfortunate public noise’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Grand Bahama Port Authority (GBPA) last night moved to reassure its licensees and potential investors over “the very unfortunate public noise” created by its $357m dispute with the Government. Freeport’s quasi-governmental regulator, in a statement, said it was responding to increasing concerns that the battle with the Government which appears to be headed to arbitration proceedings - will distract it from running Freeport and seeking to attract fresh investment to the city.
“We would like to reassure our licensees, the residents of Grand Bahama and current and prospective investors that the GBPA has not been distracted by this. We remain keenly focused on delivering the $2bn-plus of investments currently being executed for the benefit of the Grand Bahama economy,” the GBPA said. “Through its affiliates, the GBPA group of companies has initiated, is invested in or is contractually involved in creating these new investments, and was instrumental in bringing the investors to the table.” That will likely to disputed by the Government, which
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DOCTORS HOSPITAL HEADQUARTERS
Doctors Hospital targets $10m acquisition boost t 5IF ,JEOFZ $FOUSF UP BDDPVOU GPS PG SFWFOVF t %FBM QVTIFT JU AOPSUI PG TUBGG N QBZSPMM t TUBGG NBOBHFNFOU BU FY NJOJTUFS T mSN UP TUBZ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net DOCTORS Hospital yesterday predicted annual revenues will increase by $10m through its acquisition of The Kidney Centre in a deal that will make its workforce more than 1,000-strong. Dennis Deveaux, the BISX-listed healthcare provider’s chief financial officer, told Tribune Business there will be no cuts to the dialysis and renal disease treatment provider’s 74 staff with the business set to operate as a fully-owned Doctors Hospital subsidiary. While declining to divulge both the purchase price and projected impact on Doctor’s Hospital’s annual profitability, he added that The Kidney Centre “falls comfortably” within the three-five times’ earnings before interest, taxation, depreciation and amortisation (EBITDA) “range” that it typically targets when making acquisitions. Affirming that the deal’s financing was debtfree, as is The Kidney Centre, Mr Deveaux told this newspaper that the addition of its employees to Doctors Hospital’s workforce will now take the latter’s annual payroll beyond $40m.
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