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WEDNESDAY, DECEMBER 8, 2021
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IMF to Bahamas: ‘Pre-empt’ on corporate income taxes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas has been urged by the International Monetary Fund (IMF) to “preempt” global tax pressures by imposing a corporate income tax designed to suit its own purposes. The Fund, in a report that has generated much political controversy, asserted that “the balance firmly tilts” in favour of The Bahamas getting out ahead of the G-20 and Organisation for Economic Co-Operation and Development (OECD) push for a 15 percent minimum global corporate tax rate. Suggesting that The Bahamas “impose that same level of taxation” for itself, the IMF said that while this would impact the domestic economy it would also ensure all corporate income tax revenues went to the Government here rather than their counterparts abroad.
• ‘Balance firmly tilts’ on introducing this levy • Personal ‘high earner’ income tax also urged • Otherwise companies switch profits to wages And it warned that delaying, or “abstaining”, from a corporate income tax could “pose reputational risks that can jeopardise the economy”. While Tribune Business has seen documents that back this finding, well-placed sources aware of the IMF report yesterday revealed that it also recommended imposing a personal income tax on so-called “high earners”. This was urged on the basis that Bahamian companies could seek to avoid/ evade a corporate income tax by switching their profits to salaries paid to shareholders,
senior executives and upper management, thus requiring that both company and personal income be taxed. “To the extent that others impose a minimum tax on payments to, or profits in, The Bahamas, it would be in The Bahamas’ best interest to preempt by imposing that same level of taxation itself,” the IMF urged. “In principle, this would have the same effect on the activity in The Bahamas, but the revenue would accrue to The Bahamas rather than governments abroad. However, the global minimum tax per
SIMON WILSON se can affect the behaviour of multinationals. “The trade-offs manifest themselves as follows. Imposing a corporate income tax may drive away some activities, while abstaining from imposing a corporate income tax deprives The Bahamas of revenues and poses reputational risks that can jeopardise the economy.”
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Cruise port’s $25m IPO ‘not for the quick buck’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS were yesterday told the $25m initial public offering (IPO) of a 49 percent stake in Nassau Cruise Port’s operator is “not for someone looking to make a quick buck”. Michael Maura, the cruise port’s chief executive,
• No investor dividend before 2025 as long-term play speaking to Tribune Business before today’s IPO launch, said it should be viewed as a stable “longterm investment” given that the offering memorandum discloses that no investor
dividends will likely be paid before 2025. Urging Bahamian retail, or individual, investors to “have their eyes open” and ensure the IPO matches their risk appetite by fully reading the offering documents,
he reiterated: “This is not a short-term win. If someone is looking to make a quick buck, this is not the place to do it. In my opinion, this is a sustainable long-term investment.” Bahamian investors are being offered the chance to acquire shares in the Bahamas Investment Fund (BIF), a mutual fund or pooled investment vehicle that will
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Cable loses challenge to Brave ‘ad’ blocking By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas’ legal challenge to a regulatory decision forbidding it to broadcast an advertisement that allegedly defamed the Prime Minister was this week dismissed by the Supreme Court. Justice Indra Charles, in a December 6, 2021, ruling found that the Utilities Regulation and Competition Authority’s (URCA) decision to block the advertisement’s screening was “reasonable in all the circumstances” given that damage that may have been caused to Philip Davis QC and the Progressive Liberal Party (PLP).
Dismissing the BISXlisted communications provider’s Judicial Review bid, she concluded: “It cannot be said that undue potential defamation of the character of the complainants on the primary television provider in the jurisdiction does not rise to the standard of serious and irreparable damage.” She found the defamatory risk was “a sufficient reason” for URCA to issue the interim Order blocking the advertisement’s screening, and rejected arguments by Cable Bahamas’ attorney, Khalil Parker, that the order was illegal because it did not state when it would end.
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‘No luxury brands’ for cruise port’s offering By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port’s operator yesterday said it continues to target a $400m increase in annual passenger spend while making its retail and food offerings stand out from the crowd. Michael Maura, the Prince George Wharf operator’s chief executive, told Tribune Business that it hoped the new infrastructure, combined with additional entertainment and attractions, will help raise per capita cruise passenger spending by another $100
compared to the $55-$60 yields achieved pre-COVID. Optimistic that the revived waterfront will entice more passengers off their vessels in port, he added: “If we can get $100 more from these visitors, which is not more than is spent in St Maarten and St Thomas, based on 4m passengers a year that’s $400m in additional income. It’s going into the pockets of taxi drivers, straw vendors, food and beverage; everyone else.” The Nassau Cruise Port chief said the facility is also seeking to differentiate its retail and restaurant offering from what exists at Atlantis,
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Nassau ‘leads Americas’ on cruise ship port visits • ‘We’re well on way to climbing out’ as IPO launches today • Passenger volumes to reach 86% of pre-COVID in 2022 • All $244m debt financing raised for port’s transformation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port is handling “more cruise ships than any port in the Americas”, its chief executive said yesterday, adding that “we’re well on our way to climbing out” of COVID’s devastation. Michael Maura, speaking to Tribune Business ahead of today’s $25m initial public offering (IPO) launch to Bahamian investors (see other article on Page 1B), said the country’s main cruise gateway was dealing with “well over” 20 vessel calls per week in comparison to the Port of Miami’s 15-16 visits. But, disclosing that Nassau Cruise Port has taken “a very conservative approach” to its near-term performance forecasts, he added that it anticipates recovering 86 MICHAEL percent of pre-COVID MAURA passenger volumes in 2022 with some 3.3m persons passing across its docks. This is projected to rise to 3.7m passengers in 2023, with both figures based on 80 percent cruise ship “occupancy” levels, bringing Nassau’s volumes back close to the 3.85m visitors seen in 2019 prior to the COVID-19 pandemic. Asserting that Nassau Cruise Port’s business levels are on “an upward trajectory”, the
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