Anyone who believes in freedom and democracy ...should protest and oppose the horrible provision of Section 64 ...in the revised Value-Added Tax (VAT) Bill

Qc Pledges Constitutional Challenge To The Vat Bill

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A well-known QC yesterday said he is mulling whether to challenge the Government’s plans to prevent delinquent Value-Added Tax (VAT) payers from leaving the Bahamas before the legislation even becomes law.

Fred Smith QC, the Callenders & Co attorney and partner, warned that if the Government succeeded in getting Section 64 in the revised VAT Bill on to the statute books and enforced it, it would soon seek to apply similar ‘travel bans’ to defaulters on other taxes.

Arguing that Section 64 was akin to something “totalitarian dictatorships” would seek to implement, Mr Smith backed private sector executives who had warned it violated freedom of movement provisions in the Bahamian Constitution.

“I will immediately bring an action for a declaration that it is an unconstitutional provision in the law,” Mr Smith told Tribune Business, when asked what he would do if Section 64 was ultimately included as is in any VAT Act.

“I might even sue beforehand,” he added. “I am considering suing before it comes into effect. I call on anyone who believes in freedom and democracy to protest and oppose this horrible provision.”

As revealed on Monday by Tribune Business, the new Section 64 in the revised VAT Bill would allow the VAT Comptroller to prevent delinquent taxpayers from travelling until they pay off their liabilities in full or agree a settlement/payment plan that is acceptable.

The legislation states that persons owing the Government VAT monies “may not leave, or attempt to leave, the Bahamas for an indefinite or prolonged period of time” - although it does not attempt to specify the duration that would meet this criteria.

“Where the Comptroller has reasonable grounds to believe that a person liable to pay tax outstanding under this Act may leave the Bahamas for an indefinite or prolonged period without paying such tax, [the Comptroller] may] issue a certificate in the prescribed form to the Commissioner of Police and the Immigration director, requesting the Commissioner and director respectively to take such steps as may be necessary to prevent the person from leaving the Bahamas” until due payment is made, the revised Bill states.

Those who attempt to flee the Bahamas without making due payment will face either a $100,000 fine or imprisonment for up to a year.

Section 64 appears designed to prevent foreign owners of Bahamas-based businesses, as well as Bahamians, from running away from their VAT liabilities, but it could well spark legal action of the kind promised by Mr Smith.

Analysing Section 64’s impact as is, Mr Smith said; “Every Bahamian, permanent resident, work permit holder, and their children and families, can be stopped at the border and prevented from travelling - to go on vacation or conduct business - simply because it is alleged that they owe VAT.”

This, he added, was exacerbated by the “vagueness” of the ‘indefinite or prolonged period of time’ wording, and the QC added: “There are no rules or boundaries, and excess and abuse will reign supreme.”

And Mr Smith quickly warned that, if it was successful under VAT, the Government would likely extend the ‘travel ban’ to cover defaulters on other taxes.

‘The idea of being able to stop people from travelling because of alleged arrears of taxation under VAT means the Government can extend this to arrears of real property tax, National Insurance Board contributions, Customs Duties and real property taxes,” Mr Smith told Tribune Business.

“If this legislation applies to one tax, it can apply to any tax, and this kind of dictatorial approach to government will make Bahamians prisoners in their own country. If this clause is permitted to stand, each successive government will extend it to every form of taxation.”

Mr Smith added that Section 64 would effectively make Bahamians and residents “slaves of the taxman, who will be judge, jury and executioner all in one.

“Once they stop us from travelling, does that mean they’ll take us into custody until we pay the taxes? Where will it end?”

Mr Smith added that the Bahamas appeared to be “going backwards as a democracy, instead of forwards”, and warned that freedoms were often eroded by stealth, one stage at a time, if governments were allowed to get away with the first move.

Gowon Bowe, the Tax Coalition’s co-chair, told Tribune Business earlier this week that the restriction contemplated by Section 64 would likely violate constitutional rights relating to a person’s ability to move and travel freely.

He added that it had been “a sticking point” in the initial November 2013 draft legislation, and had now been ‘broken out’ and stated more explicitly in the revised legislation tabled in the House of Assembly last week.

And Mr Bowe, a PricewaterhouseCoopers (PwC) accountant and partner, said imposing restrictions on a person’s ability to travel should be the sole preserve of the judiciary and Bahamian court system, not a tax authority such as the proposed VAT Department.

“I am not sure that will stand constitutionally. It would run against movement and free movement,” Mr Bowe told Tribune Business.

“The focus should be on prosecuting those individuals, with their ability to travel restricted only by the courts. That should be purely a court function; that shouldn’t be the ability of the tax authority to restrict a person’s movement.”

Suggesting that the focus should be on prosecuting VAT delinquents, not taking away their travel and movement freedoms, Mr Bowe said the world was “too much of global society to impose something as outdated as that”.

August 01, 2014

Tribune 242

Haitian President Michel Martelly seems to be trying to shed his responsibility to curb the illegal migration of Haitians from Haiti to The Bahamas ...on the backs of the Bahamian people

Dr. Munroe suggests Martelly’s comments irresponsible

By KRYSTEL ROLLE-BROWN
Guardian Staff Reporter
krystel@nasguard.com

Bahamas Faith Ministries International President Dr. Myles Munroe yesterday suggested that Haitian President Michel Martelly’s call for Bahamians to invest in Haiti was inappropriate and pointed to a lack of leadership.

Munroe, who was a guest on the Guardian Radio show

“State of Affairs” with host Kevin Harris, said Martelly seemed to be trying to shed his responsibility on the backs of the Bahamian people.

On Tuesday, Martelly suggested that a portion of the substantial sums of money the Bahamas government spends on fighting illegal immigration should be invested in Haiti to address the problem from that end.

“The other day, I was talking to the prime minister [Perry Christie] and I heard him say he was investing about $200 million to protect the Bahamian coast to stop the boat people,” said Martelly during a meeting with Opposition Leader Dr. Hubert Minnis and Shadow Minister of Foreign Affairs Hubert Chipman in the Minority Room in the House of Assembly.

“...But that idea came to me, and I told him, ‘why don't

we invest some of that money, or at least bring in some Bahamian investors, down to the north of Haiti where these people live who come here?’”

Munroe said Martelly’s comments indicate a level of irresponsibility.

“Maybe it’s a pipe dream,” Munroe said. “Maybe it’s someone saying, ‘look, I’m going to give you my problems. I’m going to transfer the problems from my government to you. I’m [going to] be irresponsible by making you responsible for my responsibility’.

“I think that this is definitely a sign of absence of effective leadership or maybe lack of leadership completely.”

Munroe said Martelly should have communicated that idea to the government in private.

“My leadership in The Bahamas should have said that there are certain things you can’t say publicly,” he said.

“I’m not sure what the context of that was, but I am concerned. But I do think that we have to protect our independence and our sovereignty.

“I do think any relationship should be in our best interest, not in the interest of other people.”

During Tuesday’s meeting, Chipman agreed that there should be increased Bahamian investment in Haiti.

Martelly, who was in town to sign several investment and agriculture agreements with the government, said it is in the interest of Haiti and The Bahamas that things go well in Haiti.

“Sometimes investing to protect just your country is not sufficient, because that doesn’t stop Haitians from fleeing,” Martelly told reporters and government officials later that day.

“That doesn’t stop Haitians from dying, and as leaders we have a common interest in strengthening the region.”

Munroe said Haitians should invest in their own country.

“Haiti is not a poor country 100 percent,” he noted.

“They have wealthy, wealthy Haitians there. And then of course you have areas where you have low-income areas. So I don’t want the Bahamians to think that the Haitians that they may have met here is Haiti.

“I guess my point is this — why don’t those wealthy Haitians invest in Haiti, or why don’t those wealthy Haitians invest in The Bahamas?

“Bahamians themselves are not necessarily interested in investing in their own country. So how can we expect Bahamians to invest in other countries?

Munroe said while The Bahamas should be a good neighbor, it is the Haitian government’s responsibility to build its nation.

August 01, 2014

thenassauguardian

The International Organisation for Migration (IOM) to study Haitian migration from the North Coast of Haiti ...to The Bahamas and Turks and Caicos islands (TCI)

IOM Conducts Study On Illegal Migration

By Jones Bahamas:

Despite countless repatriation exercises conducted annually, migrants continue to risk the treacherous sea voyage to The Bahamas and for this reason the government is adopting a different approach toward addressing this vexing issue by supporting a study by an international organisation on the illegal migration woes affecting The Bahamas and the neighbouring Turks and Caicos islands (TCI).

“Considering the proximity of our countries to the United States of America, The Bahamas and the Turks and Caicos Islands have been prime targets of illegal migration from the south,” said Deputy Prime Minister Philip Davis during a meeting with delegates from TCI at the Ministry of Foreign Affairs on Monday.

“Migration statistics show that there are between 20,000 – 50,000 undocumented Haitians living in The Bahamas. As neighbours of the TCI, The Bahamas recognises the importance of cooperation in formulating an integrated response to combating irregular migration. For this reason The Bahamas looks forward to collaborating with TCI and Haiti in conjunction with the International Organisation for Migration (IOM) to prevent irregular migration. As part of this collaboration, The Bahamas intends to help facilitate a preliminary study to be conducted by the IOM on Haitian migration from the North Coast of Haiti to The Bahamas and TCI.”

He added that this preliminary study will help to support the formulation of migration polices and allow for enhanced regional communication.

During the bi-lateral meeting, TCI’s Governor Peter Beckingham said that his government has implemented a number of measures to tighten its grip on illegal migration.

“It’s costing human lives and its costing our government money and for those reasons and others we want to do more about it, we believe that by meeting jointly with the government of Haiti, there may be areas where we can insert some persuasion to encourage them to do more about the problem that they face and we face jointly,” he said.

“I think by showing that we are united in this enterprise and in this discussion, we will underline the seriousness of the problem and the hope that we can do something about it.”

A tri-lateral meeting between Haiti, The Bahamas and TCI is scheduled to take place on Tuesday.

July 29, 2014

Jones Bahamas

The value-added tax (VAT) implementation date nears ...despite the widespread lack of understanding about it in the Bahamian society

To Be Or Not To Be - Bahamians Want Answers On Vat

Tribune 242 Editorial:


BAHAMIAN businessmen are becoming more agitated as the date for the implementation of VAT nears with only reassurances from legislators that draft legislation as to what it will mean to them is on its way.

Gowon Bowe, a Tax Coalition co-chair, has urged that the proposed legislation be brought to parliament before it takes its summer recess.

“If we don’t do a lot in the next six to eight weeks,” he said, “we would be right back in the same situation we were facing when we were looking at July 1 as the implementation date, with the business community again saying that they don’t have enough time.”

Mr Bowe said that the business community has still not had “the critical elements. There is no legislation, no regulations on what will be exempt, or what is ultimately going to happen. We need to urge the Government to be proactive.

“There is a concern,” said Mr Bowe, “that time isn’t on our side in that regard. We understand that there was a lot going on in the Budget, but now that is out of the way, this is the most critical time in terms of our fiscal course of action. We have had some casual conversations with the Financial Secretary and he had indicated that they were just waiting on Cabinet now.”

John Rolle, the Ministry of Finance’s financial secretary, recently confirmed to Tribune Business that VAT preparation/readiness efforts were being delayed because they were waiting for “final directions” from the Government.

Government brought two tax experts from New Zealand — one of the few countries that has a good word to say for VAT – to advise legislators on its merits and how to implement it.

Dr Don Brash and Mr John Shewan, both closely involved in the implementation of New Zealand’s Value Added tax in 1985-86, could not emphasise enough the importance of an extensive education programme, both for business and the general public. It was this programme that was the secret of New Zealand’s success. Such a programme would be even more important for the Bahamas, a country, unlike New Zealand, that has no income tax, but relies solely on indirect taxation and trade tariffs. In other words, Bahamians in general are not tax savvy.

“The reason our education campaign was so successful,” said Professor Shewan, “was because there was a commitment to an 18-month educational programme, six months of which was prior to the implementation date, but the most important things happened 12 months after the implementation because there were a series of detailed explanation programmes targeted at all kinds of groups.”

Government, which had planned to implement the tax on July 1 —13 days ago — was forced to delay it to January 1 next year — six months away – because, not only was legislation not ready, but there was not enough time to discuss it with the business community or to educate the public. Soon, if government continues its thumb-twiddling, another delay for implementation will have to be announced.

In their report, the New Zealanders expressed concern “at the widespread lack of understanding of how a VAT would operate in the Bahamas”. They were also “concerned at the complexity of the VAT proposal as currently envisaged (obviously government’s first draft on their arrival). This complexity would lead to high compliance costs and potentially extensive abuse of the system,” they predicted. Hopefully, this complexity has since been simplified. The state of business in the country today can certainly not absorb high compliance costs.

It was explained that VAT was urgently needed, not only to expand government’s tax base, but also for the country to be eligible to join the World Trade Organisation (WTO). Having had to reduce its original 15 per cent tax proposal to 7.5 per cent, the government maintains that it cannot afford to also reduce Customs duties. If joining the WTO is its objective, then Bahamians can count on the VAT rate being increased so that the Bahamas – a non producing country — can qualify for WTO membership. Qualification means that all Customs duties have to be abolished. Government, while explaining VAT, should also explain in detail the advantages of the Bahamas having WTO membership.

Several months ago, Social Services Minister Melanie Griffin outlined how our sluggish economy has hurt those in the lower income brackets – the group with the potential of being the most affected by VAT. With the September opening of schools, Mrs Griffin said, there was a substantial increase in demand on Social Services to feed and equip children for school. At the time, she was being interviewed she said that 1,606 out of just over 3,500 children had requested uniform assistance.

There was also more demand for food stamps, a relief system that is growing, she said.

Mrs Griffin appealed to corporate Bahamas and private citizens to partner with government to assist children in need. Recently the 58-year-old Ranfurly Home for Children appealed for financial aid. Mrs Griffin said government would assist to make certain that the Home, which has cared for so many children sent by Social Services, would not have to close. She also said that her Ministry will have to step into the breach to assist those who might be severely affected by the implementation of VAT.

A few days ago, we were discussing VAT with a businessman who said that what his company had traditionally set aside as donations for the various charitable organisations and student scholarships would now go to VAT. This shift in donations will put an even heavier strain on Mrs Griffin’s Ministry. In other words VAT will force the public sector to curb its generosity.

No matter how we look at it, VAT is going to create a vicious circle, and regardless of how it is introduced, Bahamians will not be satisfied until the government demonstrates that it too is making substantial cuts in its unnecessary spending. Bahamians are not going to pay taxes to give government a licence to spend foolishly. 

July 14, 2014

Tribune242

Youth unemployment in The Bahamas

Halkitis concerned about youth unemployment

By KRYSTEL ROLLE-BROWN
Guardian Staff Reporter
krystel@nasguard.com

Although the unemployment rate has generally improved, Minister of State for Finance Michael Halkitis yesterday said the rate of joblessness among young people remains a concern and will require “focused attention”.

Unemployment among young people aged 15 to 24 decreased from 32.3 percent to 28 percent, but remains higher than all other groups.

Halkitis said the rate of unemployment historically has been considerably higher than any other age group. However, he said the government is working to “open new doors of opportunity” for the youth and improve the economic conditions for all.

“The emphasis is on growing the economy so everyone in all age groups benefits while at the same time making the investments in education and training to equip everyone but especially young people to take advantage of the opportunities that are becoming available,” Halkitis said.

According to the latest survey, 8,390 net jobs have been added to the economy since May 2012.

The number of people employed in May 2012 was 160,650 compared to the 169,040 people employed as of May 2014.

Halkitis said the government is looking to improve upon that figure by focusing on education as well.

“We believe that the creation of the national training agency is helping young people in the area of skills development to help them to take advantage of opportunities,” Halkitis said. “This had been a major concern among employers, the lack of skills particularly the so-called soft skills. For example, customer service.

“Also, the minister of education is introducing an equivalency diploma geared towards individuals who have not finished high school. The diploma will open new doors of opportunity for young people.

“The development of BAMSI (Bahamas Agriculture and Marine Science Institute) will provide training in the area of agriculture and marine science and allow all including young people to exploit opportunities in the area of agriculture and marine science.”

Unemployment in The Bahamas dropped from 15.4 percent in November 2013 to 14.3 percent in May 2014, according to the results of the latest Labour Force Survey released on Friday.

The survey conducted in May references the period April 28 to May 4, 2014.

While the economy isn’t where the government wants it to be, Halkitis said things are looking up.

“[I would be] happy with a faster pace of growth but [I am] pleased that things are moving in the right direction,” he said. “It gives cause for continued optimism.”

The survey shows that discouraged workers declined by 27.8 percent nationally, from 6,765 in November 2013 to 4,880 in May 2014.

The number of discouraged workers fell from 3,335 to 2,920 (12.4 percent) in New Providence and dropped from 1,915 to 760 (60 percent) in Grand Bahama.

Halkitis said the decrease in the number of discouraged workers is a “positive indication of the improving health of the Bahamian labor market.”

July 21, 2014

thenassauguardian

Support what it means to be Bahamian ...Remove the anti-Bahamians show, the Kreyol Connection

Petition by Kishon Turner 

Nassau, The Bahamas:

To: Brent Dean, The Nassau Guardian: Guardian Radio
URCA 

“Those who wish to be Bahamian also have a responsibility. They have a responsibility to try to be like us; to try to share our hopes and aspirations; to help us build  and achieve. They do not have a responsibility to try and remake us in someone else’s image; they have no responsibility to retard our progress or to destroy everything Bahamian.

-Sir Lynden Oscar Pindling-

                                                 The Kreyol Connection

"The Haitians didn’t come to the Bahamas to take over. Haitians go through the Bahamas. They happened not to get to the United States and they got STUCK HERE. They still want to go…Some people have waited 20 years to go to the United States. Forty percent of himself is in the United States, thinking that he’s already there. His family is there. Twenty percent of him is still in Haiti. The rest of him is here riding a bike, refusing to buy a house here."

-Louby Georges-

The main focus of the Kreyol connection is not to promote, “Loyalty to our Bahamas over and above all other; zeal for our Bahamas unmatched by any other; concern for other Bahamians over all others”, but rather disdain for our National Leaders like Mr. Loftus Roker and to trample on the Legacy of Sr. Lynden Pindling and his vision for the Bahamas.

The show which is undermining Bahamians authority through its clandestine approach, assists the “underground network” of illegal Haitian nationally, who undermine Bahamians and authority at every level.  The Illegal Haitian Nationals have proven to have no respect for our laws; they pay no taxes, yet benefit from our healthcare services, social services assistance and free education. 

  

There are 44 different Shanty Towns in New Providence benefiting from information provided by this show and the owners of the Nassau Guardian only sees dollar signs from this underground community.  The show represents a national security risk in that the main audience of the show cares little for this country; hate our way of life, our customs and morals.  The show is pandering to this group who has shown they are willing to undermine what is Bahamian and to show a betrayal to the Bahamas.

What does it take to be a Bahamian?

“Loyalty to our Bahamas over and above all other; zeal for our Bahamas  unmatched by any other; concern for other Bahamians over all others.”

-Sir Lynden Oscar Pindling-

Sign the Petition Here

Court grants permission to have a judicial review of the government’s consultation process ...over Mr. Peter Nygard’s applications

Injunction Imposed Against Government Over Nygard Cay

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

IN a move being hailed as a victory for greater transparency in government processes, Supreme Court justices granted injunction requests against the government yesterday that prevents the Christie administration from making decisions on billionaire fashion mogul Peter Nygard’s applications for building permits and Crown land.

The environmental group Save the Bays (STB) and 103 Lyford Cay residents and property owners suing the government were given permission to have a judicial review of the government’s consultation process over Mr Nygard’s applications.

The justices’ decision came despite the government’s move last week to extend its consultation process after admitting confusion and flaws in the process thus far. As the latest controversy to raise questions about the government’s actions when granting certain permits and approvals, some residents are concerned about the effects Mr Nygard’s activities at Simms Point could have on the environment.

They fear that the government may try to not only sanction his requests as a favour for his financial contributions to the Progressive Liberal Party over the years, but also retroactively sanction his reclamation of Crown land.

Speaking to The Tribune yesterday, STB attorney Fred Smith said his group was forced to seek an injunction after government officials failed to respond to a letter he sent requesting that it not act on Mr Nygard’s applications until a judicial review had been concluded.

“When we filed our judicial review on July 7, we wrote to the government and invited them to give an undertaking not to continue with the process and not to make decisions on Mr Nygard’s applications pending the results of judicial review,” he said. “They failed to even reply to our letter and consequently we were forced to file for an injunction to restrain the government.”

Explaining the results of yesterday’s court proceedings, which were closed to the general public, he said: “Supreme Court Justice Rhonda Bain granted permission to issue a judicial review against the prime minister, deputy prime minister, Director of Physical Planning Michael Major, the Town Planning Committee, Minister of Environment Kenred Dorsett, Minister of Transport and Aviation Glenys Hanna-Martin, and Building Control Officer Greg Delancy.

“This application for judicial review relates to the consultation process which the government purported to embark upon and Save the Bays’ application says it is fundamentally flawed and procedurally unfair with a view to retroactively authorising illegal construction, dredging and land reclamation activities that have taken place at Nygard Cay since 1984, where Mr Nygard has reclaimed nearly three acres of Crown land by constructing walls, concrete docks, helicopter pads, buildings, temple and other structures on the sea bed on the north side and south side, mostly without permits and without a Crown lease.

“The PM holds Crown land in trust for the benefit of the Bahamian people and Mr Nygard’s works affect the ecologically sensitive and culturally important Clifton heritage site, critical for diving recreation for Bahamians and tourists.”

Mr Smith said the court’s decision restrains the government from considering Mr Nygard’s current building permit applications, future building applications, his Crown lease application and anticipated applications for works relating to existing and nonexistent sea bed structures. He said the injunction restricts the government from granting any permits, approvals or leases with respect to the aforementioned applications until the judicial review is completed.

The court, he said, ordered that there should be an inter-party hearing of the injunction on August 12. In the meantime, the government’s consultation process has been suspended.

As for the Lyford Cay residents and/or property owners who collectively filed for judicial review, their injunction request was granted and will remain until the attorney general either applies to set it aside or the trial of their judicial review ends.

Mr Smith said: “We are pleased that we have been given permission to issue this judicial review which deals entirely with a process and it continues the work of Save the Bays in promoting regulated development, ie, just follow the rules rather than making it up as you go along. Parliament is responsible for making the laws and has passed Acts.

“These cases are being mounted by Save the Bays to ensure that the executive branch of government respects throughout the Bahamas laws passed by the legislative branch. Unfortunately we have to resort to the judicial branch to keep the executive branch in line. This is not how a country should be run. The government is not only Office of the Prime Minister; it also comprises Parliament, the executive branch and judiciary branch. Each must respect each other’s roles.

July 18, 2014

Tribune 242