THURSDAY, OCTOBER 27, 2016
business@tribunemedia.net
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Bahamian accusers drop Dingman claim By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘Voluntary’ withdrawal likely strategic move
Seven Bahamian companies and contractors have “voluntarily” withdrawn their claims for thousands of dollars in damages against Jamie Dingman over the collapse of his Nassau-based restaurant empire. Court documents obtained by Tribune Business provide no explanation for why they have pulled out of the New York lawsuit against the son of world-famous entrepreneur and Lyford Cay resident, Michael, although the move appears to be strategic. The Bahamian companies previously included as plaintiffs against Mr Dingman are the well-known Wulff Roadbased building materials suppliers, FYP and Tile King, the People First (Bahamas) employment agency, IDNet, and Young Digerati (YNG). The individual Bahamians
Nassau eatery empire had ‘no accounting processes’ Iconic Traveller’s Rest subsidised other outlets also suing Mr Dingman included Jason Rolle, his former general manager, who claimed to be owed $46,113 in unpaid salary and benefits, plus Tyrone Adderley, a contractor seeking more than $2,000 for work on the Beach Club Cafe at Sandyport. The decision by all the Bahamians claimants to withdraw from the action against Mr Dingman and his Out West Hospitality business, which See pg b4
Attorney admits ‘concern’ over court disputes length By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Damages claims over Jamie Dingman’s failed Nassau restaurant empire may take two-and-a-half years to be resolved if the case has to be heard in the Bahamas, a local attorney has warned. Vann Gaitor, the Higgs & Johnson partner, acknowledged the “concern” over the length of time required to resolve court disputes in the Bahamas in an affidavit filed with the southern New York federal court on October 14, 2016. Mr Gaitor also conceded that many of the frequent delays suffered by court cases were caused by “the parties themselves, or their attorneys
But delays mostly due to parties and their lawyers Dingman case could take 30 months in Bahamas here and abroad”. His affidavit, intended to rebut arguments by Mr Dingman that the Bahamas is the more appropriate jurisdiction than New York to hear the claims against him, sends a further potentially chilling warning to current and prospective international investors. The swift, impartial See pg b4
Bahamas facing ‘harsh Bran slams ‘career politicians’ reality’ on business ease for ease of business slump By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas faces “the harsh reality” that it has done nothing to improve ‘the ease of doing business’, the Chamber’s chairman warning yesterday that farreaching reform was necessary to improve economic competitiveness. Gowon Bowe told Tribune Business there should be little surprise that the Bahamas is now ranked 121st out of 190 nations for ‘business ease’, given that reforms to-date had largely consisted of “tweaks at the edges”. “We really need to ask the critical question: What have we done as a nation to improve our standing?” Mr Bowe said. “It’s a very blunt question. If we have not initiated private-public sector working groups and discussions of these issues, do we really expect to be improving?” The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman added that the blame for this nation’s consistent declines in the World Bank rankings, year after year, needed to be shared equally between the public and private sectors.
Chamber chief: ‘We’ve done nothing to improve’ Govt, businesses equally to blame for 121st ranking Reforms must go beyond ‘tweaks at the edges’
Gowon Bowe He emphasised that devising, and implementing, the necessary reforms required a public-private partnership (PPP) approach, as neither side would be able to successfully transform how business is See pg b6
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas’ slump to 121st spot in the World Bank’s ‘ease of doing business’ rankings stems from the country being run by “career politicians who know nothing about business”, the Democratic National Alliance’s (DNA) leader charged yesterday. Branville McCartney accused successive administrations of running the Bahamas as “a Mickey Mouse retail shop”, rather than treating it as a business that needed to deliver efficient public services and balance the Budget. He added that most politicians, as attorneys, did not understand “the everyday struggle” many Ba-
Says Bahamas’ leaders ‘know nothing’ of commerce And running nation like ‘Mickey Mouse retail shop’ Govt ‘failed miserably’ to tackle red tape woe hamian businesses were enduring to “keep our doors open” in the face of ever-increasing taxation and bureaucratic hurdles. Mr McCartney said that as a See pg b5
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Bahamas taxes equal 34% of company profit World Bank report challenges ‘no or low tax’ notion VAT ‘an albatross’ for private sector By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bahamian companies face an effective corporate tax rate that is equivalent to almost 34 per cent of their profits, the World Bank’s ‘ease of doing business report’ has calculated. In an assessment that undermines the notion that the Bahamas is a ‘no tax’ or ‘low tax’ jurisdiction, the report said Business Licence fees accounted for nearly two-thirds of the corporate tax burden. The World Bank document calculated that Business Licence fees, on average, accounted for a sum equivalent to 22.02 per cent - more than one-fifth - of a private company’s annual profits. The private sector has complained, and demanded reform, of the Business Licence fee structure for years, arguing that it is an unfair burden for many firms to bear given that it is based on top-line turnover K Peter - not profits. Turnquest As a consequence, companies such as food stores and gas stations, which have high turnover and low margins, face a much higher Business Licence fee burden than high margin/low turnover service providers such as small accounting and law firms. Many companies are also railing against having to pay Business Licence fees that are greater than their annual profits. The World Bank report also showed that companies pay a sum equivalent to 6.32 per cent of their profits in National Insurance Board (NIB) and social security contributions, with Stamp Duty and real property taxes coming to 6.32 per cent and 1.58 per cent, respectively. The findings given an insight into the total tax burden faced by Bahamas-based busiSee pg b6