WEDNESDAY, AUGUST 10, 2016
business@tribunemedia.net
Tax certificate demand forcing “cash only” deals with Govt By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemdia.net A BAHAMIAN auto dealer said yesterday that the Government’s “unreasonable” monthly Tax Compliance Certificate (TCC) demand was putting a serious strain on local businesses and creating a “big paperwork backlog”, arguing that the Government’s failure to keep its own fiscal house in order was pushing some businesses into “cash only” arrangements. Ben Albury, the Bahamas Bus & Truck general manager, said yesterday that it was contradictory for the Government to severely scrutinise businesses when it has been challenged to meet its own fiscal obligations. According to Mr Albury, at least one of his competitors has placed the government on a “cash only” arrangement and
TCC rules “unreasonable” says auto dealer Believes government trying to avoid payments Albury fears that local businesses will fold under present circumstances, he believes more businesses inevitably will do the same. “The government financial household is in such a mess but then they are scrutinising businesses which have been loyal and faithful in paying their bills and carrying a great load towards keeping the govern-
Ben Albury ment operating,” Mr Albury said. “When I need to collect my money it’s a mess. As a businessman, I have to keep my business functioning. I can go months and months behind in collecting money from government but they tell you you need to have all of your business in order, that’s the frus-
trating part. “Even if they have tax refunds for me, I can’t get them because I can’t get my tax refund certificate in a reasonable time to process it. I think they are going to put a lot of people out of business or some people - including one of my competitors - has put them on completely cash. They can’t go in and get a part unless they have cash. You can’t trust them to take a product with just a purchase order.” Mr Albury said that while he has faced challenges like other businesses in terms of getting Value Added Tax refunds in a reasonable time, the need for a TCC each month has also proved problematic. “Now we have the problem with the Tax Compliance Certificate that has to be issued on a monthly basis,” he said. “There’s a challenge in getting See pg b4
BPL’s request for turnoverbased licence fee agreed By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
Minister of Education, Science and Technology, Jerome Fitzgerald pictured as he announces analysis for the 2016 National Exams. Photo/Shawn Hanna
Taking students to court over loans is “last resort” says minister By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net EDUCATION Minister Jerome Fitzgerald said yesterday that he was “pleased” with the level of participation in the student loan repayment arrangements, noting that legal action “is a last resort and not the first”. Earlier this year Mr Fitzgerald said that the Education Loan Authority (ELA) is owed $155m in loan payments - principal and interest included. That represents approximately 4,300 outstanding loans, accounting for a delinquency rate of approximately 75 per cent amongst borrowers. He noted at the time that approximately 4,733 loans had been issued. Mr Fitzgerald told The Tribune yesterday: “With regard to the Education Loan Authority, we are very pleased with the level of participation we are seeing. We are seeing students, past students and parents who have committed to pay and are coming in. We are negotiating those loans and making it more affordable to many of those past students. We continue to work with them. “We want to be in a situation to hopefully be able to restart the programme because it has shown that it is beneficial. The government has increased the level of scholarships. It has more than doubled but still there is a shortfall for some students so we need to have another avenue available for them.” Mr Fitzgerald said that the ELA, which has full
75 per cent of education loans are delinquent Fitzgerald says ELA making inroads into $155m debts
THE Utilities Regulation and Competition Authority (URCA) acceded to Bahamas Power and Light’s (BPL) request that its annual fees to the regulator be based on turnover - with the exclusion of fuel charge - while dismissing the electricity provider’s request for the licence fee to take the place of the annual business licence fee. URCA noted in its Statement of Results and Final Determination on Public Electricity Supplier Licence that a fee change was beyond its “regulatory power or statutory remit”. “URCA does not have the regulatory power or statutory remit to accede to the replacement of the Business Licence fee with the URCA licence fee,” the regulator said. “URCA considers that the two are dissimilar in nature and purpose to the extent that the URCA licence fee is specific for the functioning of URCA in accordance with the Electricity Act, 2015, and set out (and explained) in URCA’s Fee Schedule, as published annually.
URCA rejected business licence switch Regulator bound by power and remit “The Business Licence fee is a tax imposed by the Government of the Bahamas on all businesses carrying on business in the Bahamas for public good and interest. URCA accepts BPL’s proposal that annual fees should be based on turnover, with the exclusion of fuel charge, and will amend the Licence accordingly,” said the regulator. URCA announced on Monday that it had awarded the first Public Electricity Supplier Licence to BPL, authorising the company to engage in the generation, transmission, distribution and supply of electricity in the Bahamas. On January 28, 2016, the Electricity Act along with a compendium of related legislation came into effect, thereby establishing the Authority as the regulator for the electricity See pg b4
K Peter Turnquest
Govt involvement a “disincentive” to Freeport investors Turnquest cites BEC and NIB as bad examples of involvement By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net OPPOSITION Finance spokesman K Peter Turnquest yesterday asserted that Government’s involvement with the Grand Bahama Port Authority (GBPA) would result in neither quick decisions nor efficient business, suggesting that one need “only look as far as BEC and NIB” to see the results of political considerations. While Prime Minister Perry Christie has defended the government’s “minority equity stake” in the principal landholding companies in the city of Freeport based on a Memorandum of Understanding (MOU) with the GBPA, Mr Turnquest yesterday asserted that government involvement would likely not improve business. “We’re talking about government getting involved in a private entity,” Mr Turnquest said. “That is never a good thing from the private entity’s point of view because it injects a whole different dynamic into the operation of what is otherwise a business. You only need to look as far as NIB or BEC to see what happens when you have government involved in the decision making process. BEC wants a rate increase but the government says no because there are other considerations - political considerations. When you start to inject government into the running of a private entity you are going to have complications. That is not going to result in quick decisions or an efficient business. “On the other hand, if the government is a participant in the decisions of the Port Authority then what is the recourse for citizens after that if they are aggrieved? As it is now if the Port Authority acts outside of its mandate See pg b4
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responsibility for the loan scheme, has not yet had to take any borrowers to court. “That is a last resort and not a first resort,” he said. Mr Fitzgerald noted earlier this year that of the 4,733 loans that had been issued, 16 per cent are up to date on their payments, eight per cent are up to 270 days outstanding and 76 per cent are 271 days or more behind on their payments.
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