By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A HIGH-END Exuma project was warned both developer and homeowner properties would be sold-off unless “very serious concerns” over multi-million real property tax liabilities were resolved.
Homeowners in February Point, which has been described as “the crown jewel of Great Exuma”, were alerted late last month to Ministry of Finance and Department of Inland Revenue (DIR) demands for all homeowners to
provide proof of their real property tax status and whether they were current with their payments by end-September 2024.
Patrick Dwyer, company accountant for February Point Resort Estates, in a September 27, 2024, e-mail to homeowner residents revealed that the demands came after he was summoned to a meeting in Nassau headed by Simon Wilson, the Ministry of Finance’s financial secretary.
“On Monday and Tuesday, September 23-24, 2024, a meeting was held at the Ministry of Finance with the financial secretary of the Government of the Bahamas,
Simon Wilson, and me representing February Point,” Mr Dwyer wrote in the e-mail obtained by Tribune Business. “The meeting was to address some very serious concerns relating to real property tax.
“The Government is requesting immediately that we (February Point Associates) provide to them the names, addresses and telephone contact of every single homeowner within the February Point community. In addition to the requested information, we are also required to provide them
By NEIL HARTNELL
REAL estate transactions are being “held hostage” by frequent Department of Inland Revenue (DIR) challenges to sales prices as it bids to maximise taxes, an Opposition MP is charging.
Adrian White, the St Anne’s MP and a commercial attorney by profession, told Tribune Business that the tax authorities appear to be “creating and setting the market price themselves” by questioning transaction prices that are lower than the valuations they have assigned to specific properties for real property tax purposes. Speaking out after realtors last week warned that an increasing number of property deals are
being put “in jeopardy” by Department of Inland Revenue (DIR) challenges to the sales price, upon which VAT payments are based, he warned that The Bahamas’ “reputation is the loser” when this causes completion delays or even the collapse of sales. Confirming that he has personal experience of such delays with deals he has handled, Mr White told this newspaper that “transactions are at risk of being lost” whenever the
authorities demand higher VAT payments on a conveyance than both vendor and purchaser have bargained for.
While this has been “more of a frustration to the market” than dealbreaker at present, the St Anne’s MP said the Government was imposing an ever-greater tax burden on Bahamians to help pay for the “bad financial position” in which the Public Treasury finds itself postDorian and COVID-19.
And, while agreeing that persons who sought to cheat the Government of due taxes by submititng false, lower values than the actual purchase price should be punished, Mr White argued that the entire real estate market “should not suffer for one or two” rogue operators as he himself had never encountered such “under the table” practices in 20 years as an attorney.
“We have experienced it,” he said of VAT-related real estate deal hold-ups. “It’s especially more of an
Vehicle importer loses negligence claim on Road Traffic Act breach
By NEIL HARTNELL
A BAHAMIAN vehicle importer’s negligence claim against an insurance broker has been dismissed after the Supreme Court found he committed at least one Road Traffic Act violation. Geslin Pierre, owner of GP Car Imports, had alleged that the failure of Shield Insurance Agents and Brokers to follow his instructions and cancel
a third-party insurance policy on a 2009 Mitsubishi Colt exposed him to “humiliation and embarrassment” at the hands of the Royal Bahamas Police Force.
He claimed the broker had not only failed to “nullify” the policy but permitted Howard Tucker, to whom he sold the Mitsubishi Colt in March 2019, to renew it in his name for the year between January 2021 and January 2022.
During that period, the vehicle was involved in a
“hit and run” accident on October 8, 2021, where the victim pursued the Mitsubishi Colt and eventually caught up with the driver who falsely identified himself as “Geslin Pierre”. This led to a series of events where Mr Pierre was arrested and detained by the Royal Bahamas Police Force and placed on its ‘Be on the Lookout’ list.
The vehicle importer, blaming Shield Insurance Agents and Brokers’ failure to cancel the insurance policy for triggering
his misfortune and what he alleged was police harassment, initiated legal action against the company on April 5, 2022, for purported negligence and breaching its duty of care towards him.
However, Lloyd Howard Knowles, Shield Insurance’s principal, countered that Mr Pierre had failed to comply with the conditions required to cancel the Mitsubishi Colt’s coverage because he did not return
Consumer protection ‘double edged sword’ for contractors
By FAY SIMMONS
Tribune Business Reporter jsimmons@teibunemedia.net
THE Bahamian Contractors Association’s (BCA) president says resolving the “huge amount of ambiguity” surrounding construction contracts will help slash consumer complaints about the sector. Leonard Sands, responding to the Consumer Protection Commission’s
disclosure that the construction industry is subject to the second-highest level of client complaints it receives, said that while some grievances over shoddy workmanship and over-priced work are valid most of the disputes stem from contractual issues. He added that, in his experience, most disputes stem from a misunderstanding about the contract governing the relationship between the two parties. “I
think it’s kind of interesting,” said Mr Sands. “One side of the complaint could be as easy as an owner or persons believing that they got shoddy work and, in fact, they may have gotten shoddy work. “The other side of the complaint can be from the contractors, when in a lot of instances they don’t get paid for work that they do perform. I think this
No UK ‘droves’: Bahamas told to ramp up promotion
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas must be “a bit more aggressive” in promoting its advantages, realtors are urging, with “the droves” of wealthy families expected to move from the UK yet to materialise.
Ryan Knowles, founder and chief executive of Maison Bahamas Real Estate, told Tribune Business that he and others “haven’t seen quite the number expected” yet as a result of changes in UK tax laws that are anticipated to impact around 74,000 ultra high net worth individuals claiming so-called ‘nondom’ status from April 2025 onwards.
Acknowledging that it could take as little as ten of these persons to “move the needle” for The Bahamas, he added that providing increased real estate options at the market’s top end
will also boost this jurisdiction’s attractiveness as post-COVID demand has slashed available inventory by between 25 percent and 40 percent. So-called ‘non-domiciled’ persons are individuals who, for UK tax, are treated as resident but have their permanent home in another country. However, they now face having to pay millions of pounds in tax as a result of the UK government plans to scrap a tax break that enabled them avoid paying tax on their overseas income for 225 years.
The change is due to take effect from April 6, 2025, although there has been growing speculation that the newly-elected Labour government may be rethinking these plans amid concern it would force wealthy investors and entrepreneurs to flee the UK and harm that nation’s economy.
ADRIAN WHITE
LEONARD SANDS
MINISTER HITS BACK ON $60M GLASS WINDOW BRIDGE COST
By FAY SIMMONS
A CABINET minister yesterday dismissed a predecessor’s assertion that the now-$60m price tag for reconstructing Eleuthera’s Glass Window Bridge is “frightening”.
Clay Sweeting, minister of works and Family Island affairs, blamed post-COVID 19 inflation for increasing construction costs while arguing that concerns voiced over the price tag by Desmond Bannister, ex-deputy prime minister, were misplaced.
He added that Mr Bannister, who preceded him as minister of works, had given a $26.1m-$35.6m cost range based on preliminary studies that did not include
CLAY SWEETING DESMOND BANNISTER
all factors influencing the final price.
Responding to Mr Bannister’s call for the price of the bridge’s reconstruction to be investigated, Mr Sweeting said: “When I took on the role as minister of works and Family Island affairs in September 2023, the reconstruction of the
Glass Window Bridge was one of the first projects I was briefed on. “I noted that the feasibility study undertaken in November 2020 had the bridge cost in the region of $26.1m to $35.6m.The study considered five different options,” said Mr Sweeting. “The cost of the
bridge in 2020 that Mr Bannister is referring to during the interview was based on the preliminary design assumptions.
“However, the preliminary design stage does not have a detailed geotechnical study included. The costs at that stage are only for comparison between the different options.”
Speaking to reporters, Mr Bannister said it was “frightening” that the cost of reconstruction, estimated to be between $30m to $35m in 2021, has almost doubled.
He added that when the Free National Movement (FNM) was voted out of office plans were already in place at the Ministry of Works to rebuild the bridge and make it a tourist attraction. “For the cost to almost double within a few years
is frightening,” said Mr Bannister. “It shouldn’t happen. We knew what the costs were, and I could see the cost increasing a little bit. But to see the cost increase that much requires a tremendous amount of accounting. It requires some accountability, and I hope that the Opposition will hold the Government’s feet to the fire in the interest of the Bahamian people and in the interest of the people of Eleuthera.
“The Free National Movement accepted some studies that provided the best positioning for the bridge, the safest positioning, the positioning that would make it available all of the time, and would also make it a suitable tourist attraction, a wonderful tourist attraction. The plans
No UK ‘droves’: Bahamas told to ramp up promotion
“I don’t think we’ve quite seen it in the droves we were expecting,” Mr Knowles told this newspaper of UK ‘non-dom’ interest and moves to The Bahamas, “but there have been a number of high net worth clients really at the top end of the market potentially looking at making a switch.
“There have been a couple of high-priced transactions that have occurred with a number of those UK non-dom folks looking. True, we haven’t seen quite the number we expected, but we did get some business from it and there are a number of months to go.
“It’s quite possible that as we get closer to the deadline those individuals will make a final decision and many more of them may end up making the move. We are one of several jurisdictions that would be of interest and would be attractive.”
Mr Knowles said Italy, which is closer to the UK and has adjusted its tax laws to attract wealthy overseas investors, as well as Dubai, another popular location for British visitors and investors, are among the nations that The Bahamas is competing with for the ‘non-dom’ market if the changes to UK tax law actually proceed.
However, given The Bahamas’ size he asserted that attracting just a tiny fraction of this customer base could have a material impact for the country’s economy. “If we get ten individuals who decide to move and take up residence here, that’s a material effect on our market at the high end of it,” Mr Knowles told Tribune Business.
“It doesn’t take a lot to move the needle. We’re in a relatively low inventory climate so if suddenly we have 10-15 individuals purchase at the upper end that’s going to cause
quite a stir and have a definite effect on the market and push prices up further, plus maybe motivate sellers to put properties on the market if they see there are buyers out there.
“We do need more inventory. Our inventory, relatively speaking, is fairly low compared to what it usually is. It’s probably anywhere from 25 percent to 40 percent lower. We went through so much of it and it does take a while for it to rebuild. It is coming around but does take time with new buildings. On the resale side it’s still fairly light; getting better but not where it was before.”
Noting that Dubai has investor-friendly tools specifically targeted at the UK market, Mr Knowles added: “I think they’ve probably been more aggressive as a jurisdiction than we have in attracting them. Italy has been very aggressive in attracting those looking for a certain tax environment.
It could be a number of things. It’s competitive stuff.”
Pointing out that rival nations may have more inventory available at the multi-million dollar price points sought by UK ‘nondoms’, he said: “I think a lot of it is spreading the word and reminding people of all the benefits of living in The Bahamas; residency, investment, the beauty and lifestyle unmatched, selling the jurisdiction and its tax benefits.
“It’s just making sure that when people are looking at different options and the best place to reside that The Bahamas is at the top of the list. We have great schools, really great medical care, are very close to the US and the US dollar and Bahamian dollar are pegged.
“All the fundamentals are there. It’s a matter of putting our hand up and telling people that we exist and are a good place to consider. Those other jurisdictions are very aggressive in going after those individuals, and we probably need to be a little more aggressive in doing so.” Gavin Christie, broker and appraiser with Corcoran C. A. Christie Bahamas, told Tribune Business that this nation is among the destinations in play for non-doms seeking to flee the UK. “We have seen an uptick in interest and queries for The Bahamas specifically for families under this ‘nondom’ status,” he said.
“We’ve found a lot of that interest is going to the Out Islands believe it or not. We find the European clientele tends to be drawn to more
are all in the Ministry of Works.”
Mr Sweeting, however, pointed out that once the geotechnical study was conducted, and the cost of building materials increased after the pandemic, the total price of the project increased to $60m.
“The estimated cost of the reconstruction increased during the ‘detailed design stage’ where the length of the bridge was increased as voids were found at the southern end of the scheme,” said Mr Sweeting.
“Also, during the geotechnical stage the foundations were designed, which further increased the cost. The costs undertaken in 2020 were based upon preliminary design and pre-COVID construction costs. The final cost of the
of the Family Islands than Nassau. We’ve counselled one very large client who has made a very extensive purchase already that has led to conversations with two or three more who we anticipate might not be too far behind....
“I think it’s a great opportunity for The Bahamas to position ourselves as a destination for them. We have to continue to improve our tourism product and infrastructure product so that when they come here they have access to the island lifestyle and every day amenities as well as infrastructure,” Mr Christie added.
“It’s not just ultra high net worths. We’re also starting to see a handful of professional athletes, who are at the top of their careers and made a tremendous amount of wealth based out of the UK, looking for new destinations to reside and become permanent residents.”
VEHICLE IMPORTER LOSES NEGLIGENCE CLAIM ON ROAD TRAFFIC ACT BREACH
the insurance certificate to the company. Instead, the insurance certificate was in the possession of Mr Tucker, the vehicle’s purchaser, when he renewed the third-party coverage for the Mitsubishi Colt with Shield in Mr Pierre’s name. Mr Knowles said it was”not unusual” for clients to have a third party, such as Mr Tucker, renew coverage on their behalf provided there were no changes to the policy.
And, asserting that Mr Pierre had violated the Road Traffic Act’s section 28 by failing to remove his plates from the Mitsubishi Colt when he sold it, Mr Knowles also alleged that the GP Car Imports principal “may have engaged in the common but unlawful practice of selling vehicles as licensed and insured”.
That, though, was denied by Mr Pierre and the Supreme Court made no findings over the failure to remove the plates before the vehicle was sold. But Justice Neil Brathwaite, in an August 21, 2024, ruling found that the vehicle importer had breached the Road Traffic Act by not giving the insurance certificate back to Shield despite saying he was “well aware” of the required process. Mr Pierre, in his claim, alleged that besides renewing the insurance policy in his name, even though he no longer owned the vehicle, and listing him as the “authorised driver”, Shield had also failed to verify whether he was still the Mitsubishi Colt’s owner and ensure he held “an insurable interest”.
“As a result of the defendant [Shield’s] negligence, the plaintiff has been arrested and detained for extended
periods of time resulting in the deprivation of his right to liberty as a citizen of the Commonwealth of The Bahamas,” Mr Pierre’s claim alleged.
“After the defendant permitted the third party to renew the insurance policy, the third party was permitted to operate the insured vehicle and commit criminal offences in the 2009 Mitsubishi Colt. As a result of the commission of these criminal offences, the plaintiff has been arrested and detained by the officers of the Royal Bahamas Police Force.
“The defendant caused the plaintiff to be subjected to humiliation and embarrassment as he was pulled over on numerous occasions by the officers of the Royal Bahamas Police Force for offences committed by the third party in the 2009 Mitsubishi Colt, namely a motor vehicle accident and the car not being adorned with licence plates.
Mr Pierre alleged that this resulted in him being placed in the Royal Bahamas Police Force’s ‘Be on the Lookout’ circular as a result of offences being committed by someone else using the vehicle, as well as causing harassment by both the police and traffic accident victims seeking compensation for losses suffered in collisions with the 2009 Mitsubishi Colt.
But Shield, in denying it was negligent, said Mr Pierre had failed to follow the process for cancelling insurance coverage. It added that the insurance certificate for the
vehicle, which should have been returned to it, was instead in the possession of Mr Tucker who was able to renew it in Mr Pierre’s name.
Mr Knowles, in his evidence, said Mr Pierre and GP Car Imports had been a Shield client for four-anda-half years from April 28, 2017, to November 1, 2021. The latter date was when the broker first became aware he had sold the Mitsubishi Colt as Monette Cartwright, the October 8, 2021, hit-and-run victim, sought to claim on the policy for damages she suffered in that accident.
Shield immediately cancelled the policy, which was effective for a year between January 18, 2021, and January 18, 2022, upon learning that the vehicle was not in Mr Pierre’s possession. Mr Knowles said the vehicle importer was fully aware of what was required to cancel an insurance policy as he had done this many times before for his business when an automobile was sold.
“Based on the fact that the alleged purchaser, Patrick Tucker, was in possession of the original insurance certificate in addition to the vehicle licence plates belonging solely to the plaintiff, it is my firm belief that the plaintiff may have engaged in the common local but unlawful practice of selling vehicles as licensed and insured,” Mr Knowles alleged.
“Had Mr Tucker not been provided with the insurance certificate by the plaintiff at the time of sale, Mr Tucker would not have known where the vehicle was insured.”
N O T I C E
BANNISDALE LTD.
(In Voluntary Liquidation)
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act 2000, the above-named Company is in dissolution, which commenced on the 10th day of October, 2024. The Liquidator is Windermere Corporate Management Limited, 200 Sterling Commons, East Building, Harbour Drive, Paradise Island, Bahamas, P.O. Box N-7797, Suite A-084, Nassau, Bahamas.
Mr Knowles added that Mr Pierre’s failure to remove his licence plates from the Mitsubishi Colt, and allow Mr Tucker to retain them, would have resulted in him being detained by the police “in any event”.
“This is clearly negligence on the part of the plaintiff,” the Shield chief added. “This negligent act, as indicated before, is in direct contravention of section 28 of the Road Traffic Act chapter 220.” And, when the broker contacted Mr Pierre about renewing the Mitsubishi Colt’s insurance for 2020, he made no mention the vehicle had been sold.
Mr Knowles added that “it is not unusual for customers to have a third party renew a policy” on their behalf, adding that no “red flags” were raised when Mr Tucker appeared to renew it in January 2021 because no changes were requested.
Mr Pierre, in crossexamination, admitted that the nature of his business required him to licence and insure multiple vehicles. “He further accepted that he was well aware of the procedure to cancel a policy,” Justice Brathwaite said, noting that the Mitsubishi Colt was sold two months after he insured it.
“He denied selling the Colt as licensed and insured, and acknowledged signing the insurance contact and that the contractual procedure for cancellation of the policy was not followed,” the judge added. “He also admitted that he did not surrender the insurance
certificate to the insurance company, as required by law, and stated he was not aware he could have taken the licence plates.”
And Shield argued that Mr Pierre “is entirely responsible for any misfortune he may have endured” by failing to surrender the insurance certificate and remove the licence plates before the vehicle was sold. It added that no evidence was supplied to support the negligence claim.
Justice Brathwaite, describing Mr Pierre as not “a credible witness”, found that Shield did not call him in March 2019 to inquire whether he wanted to renew the Mitsubishi Colt’s premium as this was not due to expire until January 2020. As a result, he rejected the vehicle importer’s contention that he informed the broker then that he had sold the vehicle.
“I further do not accept that the plaintiff ever cancelled the insurance policy in accordance with clause nine or at all,” Justice Brathwaite ruled. “That clause requires the insurance certificate to be returned, which the plaintiff accepts he never did, in breach of section 16 (1) (b) of the Road Traffic Act chapter 220.”
This requires the insured party to surrender the certificate to the insurer within 14 days of the policy’s cancellation. And Justice Brathwaite ruled that any contact between Mr Pierre and the police resulted from the former’s failure to remove the licence disc and plates, also finding that the vehicle importer was “solely responsible” for failing to surrender the insurance certificate.
THE OLD GUARD IS WORRIED
By CHRIS ILLING CCO @ ActivTrades Corp
THE reporting season started again last Friday, which should show how the international economy is doing in the coming weeks.
The best-known Wall Street index, the Dow Jones Industrial, climbed to a record high last Friday. Shortly afterwards, the market-wide S&P 500 also reached a record high. Positive news came from the financial sector, and the better-than-expected
unveiling of its Cybercab robotaxi, which was perceived as lacking crucial details on production timelines and operational capabilities.
money machine. Now the car market is turning much faster than expected, even in the expensive segment.
FREEPORT-BASED
Paint Fair has moved into its newly-refurbished 8,000 square foot location some five years after its previous home suffered 10 feet of flooding in Hurricane Dorian.
The new Bellevue Lane site, just off Queen’s Highway, features ample customer parking and a store showcasing multiple paint brands and equipment, the latest colour and design trends, and newlyadded categories such as wallpaper and speciality flooring.
Keystone Construction team was responsible for the design and buildout. Lesley Davies-Baptista, Paint Fair’s president, said: “The journey to the new facility was a challenging one. Enduring and recovering from Dorian, having to rent a place to get back up and running after the storm and then COVID … it has been crazy to say the least.”
The 2019 storm caused severe flooding up to 10-feet high in Paint Fair’s location on West Settler’s Way - a location built by Ms Davies-Baptista’s late mother, Joan Davies, who co-founded the retailer with Colin Davies in 1980.
quarterly figures gave the largest US bank, JP Morgan, a price gain of 4.5 percent in the Dow. Goldman Sachs also benefited from this with a 1.8 percent jump, along with Bank of America which rose by 5 percent. Morgan Stanley rose by 2.5 percent and Citigroup by 3.3 percent.
Only the technologyheavy Nasdaq had a difficult end of the week, and this was due to an underwhelming presentation by Elon Musk and Tesla. Tesla shares dropped significantly lower following the recent
Analysts have raised concerns that the anticipated Cybercab may not enter production until at least 2026 or 2027, a timeline viewed as too distant. In general, the car industry is changing rapidly and the old premium brands are struggling to keep up.
The German premium manufacturers thought China was their eternal
The top four German car manufacturers - Mercedez, Porsche, BMW and VW - have lost between 25 percent to 30 percent of their stock market value in the last six months. In mid-September, Mercedez and BMW issued profit warnings because of the problems in China. In July 2024 , more electric vehicles and plug-in hybrids were sold in China than combustion engines for
the first time. By 2030, that market share will already be 75 percent, consultants predict. And it would probably be 70 percent in the luxury class, too. Only two German models are among the top ten electric premium models today.
The Chinese pace of innovation, the “China speed”, leaves the Germans and other international suppliers in the dust. The savvy investor will keep an eye on the new Chinese car manufacturers.
Paint retailer opens its new site five years after Dorian
After securing a rental spot on West Settler’s Way, Paint Fair re-opened just weeks after Hurricane Dorian. During the COVID-19 pandemic, it initiated and ran an online order and curbside pick-up service enabling customers to carry out much-needed repairs to homes damaged by the storm.
“But here we are today, grateful to be home. Even though it is a new home, it already feels right,” Ms Davies-Baptista added.
“We’ve got new products, new lines, new technology and it’s just a great space. So we are excited for our customers to come visit this store.”
The new Paint Fair location features more varieties of interior and exterior paints, floor coatings and tools from its international suppliers, including PPG Paint, International Paint, ALLPRO, Graco, Florida Paint, Acrylabs Roof Systems, Sherwin Williams, Master Wall, Infinity Paint
Company, Lancaster Company and Saman Stain Company.
“We are proud to have some of our products here at Paint Fair,” said Florida Paint’s Tom Griffey. “We have floor coatings, interior and exterior products.”
Businesswoman Angela Toothe added: “I fancy myself an amateur interior designer, so what I see here is great. I’ve already started a mental list of products I want to purchase to
decorate for Thanksgiving and Christmas.”
“We are so excited to announce that we can finally resume our colour shows, which have always been a great way to bring in the holiday season with colour and design inspiration,” said Ms Davies-Baptista.
PPG Paint’s colour and design team will host an architect, designer and
contractor show on Tuesday, October 29, and the DIY and residential show on Wednesday, October 30.
“Space is limited,” said Tim Neuner, of PPG Paint. “We have a wonderful show planned to welcome everyone to this new space, so be sure to follow Paint Fair’s Facebook and Instagram to secure your space.”
PPG Paint’s colour and design team will host an architect, designer and contractor show on Tuesday, October 29, and the DIY and residential show on Wednesday, October 30.
CONSUMER PROTECTION ‘DOUBLE EDGED SWORD’ FOR CONTRACTORS
presents an opportunity, if we work together, for both sides to come and kind of do some education.”
Mr Sands said many times clients will become upset with contractors when they realise the scope of work they expected was not included in the contract.
This leads to them “butting heads” about the business arrangement.
“Most of the time we hear from our contractors, the person engaged them to do ‘X’, and then they ask them to do ‘x, y and z’, and get very upset if they don’t do ‘x, y and z’ when the contractors were contracted to do ‘x’,” said Mr Sands.
“If you ask me to build your wall, and I give you a price to build your wall, and then you tell me I wanted the wall ten feet tall
rather than five foot tall, you should have told me the height of the wall you wanted.
“Persons like to say the contractor should contract better. This is an instance where the person desiring work should have contracted better and clearly stated the work they want performed.”
Mr Sands said the BCA is willing to work with the Consumer Protection Commission to reduce consumer complaints and educate the public on the importance of ensuring the work set out in the construction contract is exactly what they would like to see undertaken.
“I think public education is necessary to reduce this number of complaints,” said Mr Sands. “I do know throughout my years in the industry there’s just an abundant amount of ambiguity relating to contracts, and
both parties should really sit and determine what they want the relationship to be before anything happens.
“The BCA gets complaints and concerns from both sides all the time, every week, from contractors and clients. We are willing to work together with the Consumer Protection Commission to see if we could reduce this number of complaints and also find a medium so the persons who do feel aggrieved get some kind of remedy.”
The BCA president said the Association frequently receives and intervenes in consumer disputes and, in his experience, most complaints stem from a disagreement about contractual terms. “I have mediated, brought parties together to discuss matters ten times more than Consumer Protection,” said Mr Sands.
“I can tell you, in every instance, the client thought one thing and the contractor thought another thing. If you all sat down and agreed on what it is that both parties were going to do beforehand, none of this would have happened. In certain instances, one party or another did not live up to the obligation, but even that could have been contracted better.”
Mr Sands said the BCA is working to educate its members on the importance of drafting contracts properly and walking away from jobs they find problematic in the negotiation stage.
“Contracting has to be correct first before the engagement of the contractor and the client. That’s where this whole mess happens,” added Mr Sands.
“I think that there’s gross ignorance of what
the contract, or what the arrangement, is between the contractor and the client from both the contractor and the client side. The BCA is taking it upon itself to try to educate the contractors on how to contract property, how to do work that they are qualified to do, and how not to do work that they feel they would get in trouble with.”
Mr Sands said the Consumer Protection Commission often acts as a “sword not a shield” for contractors and, while resolving complaints is important, there is no agency that contractors can lodge concerns about clients who do not fulfill their contractual agreement and pay for services rendered.
“Consumer protection mostly acts as a sword and not a shield for the contractor. When we don’t get paid,
no one’s out there helping us get paid,” said Mr Sands. “Everyone likes to hear the complaint from a homeowner. They can say he didn’t perform, but from my contractor’s side, I didn’t get paid to do that and who’s batting for me?
“The BCA will fight aggressively to defend the reputation of some of our contractors. We do acknowledge that some of them are at fault. With the ones who are not at fault owed monies, who’s going to help us recover those funds? There’s no agency out there helping us. Maybe there should be Consumer Protection for contractors.
“We don’t disagree that there are some contractors who don’t live up to the obligations, but I also have a dossier of information on contractors who have adopted obligations and then monies were never paid, and there’s no one in addressing those concerns either.”
Real estate purchases ‘held hostage’ over VAT demands
issue when there’s a real property tax assessment on the property that is higher than the purchase price.
“I would say say that, about 90 percent of the time, properties are being sold through realtors who have marketed them themselves and through the industry’s MLS (Multiple Listing System), and they are the best example of market price, market value, which is the value the real property tax assessment should be equivalent to.”
Dexter Fernander, the Department of Inland Revenue’s operations manager, last week said it typically queries a sales price if it is more than 15 percent lower, or higher, than the assigned real property tax valuation.
However, Mr White said the tax authority’s practices often inflated the latter valuation to a level above what the market will pay.
“You’ll find the Department of Inland Revenue will send persons around to reassess property in a neighbourhood or community, and if they find one example of a sale which may be higher than the market average, they’ll increase everybody’s property to that value,” he asserted.
“Sometimes they will ball park it. Say there’s a property on Paradise Island; because of the location they will say someone will pay more for it [than market value or sales price].
They’re almost setting the market price rather than have the tax assessment based on the market price.
“They are creating and setting the market price themselves based on what
they think the property’s worth, not what the comparatives show it’s valued at.” Mr White likened the motivation for the Government’s stance to someone desperately seeking to sell their property for a price higher than the market will typically bear in a bid to pay off debt.
“What we find is the Department of Inland Revenue is doing the same thing,” he argued. “There are financial collections and targets that they need to make, and they are imposing them on the Bahamian people and Bahamian real estate market in the hopes of mitigating the bad financial position for themselves; having more expenditure than they can manage without taking more out of the pockets of Bahamians.
“That all comes back to the delay that is being seen in having a real estate transaction completed, as the VAT needs to be paid first. It’s not being accepted on the purchase price because the Department of Inland Revenue’s property tax valuation on the property is greater.”
Mr White said the holdup caused by sales price/ VAT challenges is worsened by the further wait for the Department of Inland Revenue to conduct reevaluation assessments. Suggesting that this should be completed in “a week or two”, he added that reassessment requests were either “stonewalled or completely ignored” or failed to reach the relevant officials.
And, if they were received, the St Anne’s MP said they often seemed to “bottleneck at the desk of
NOTICE
C&R Ltd.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 208525 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 11th day of October A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Ms. Angela Castanheira Ribeiro, whose address is Alameda Dos IPES, 00427, BOSQ Da Ribeira, CEP: 34007-404, Nova Lima, MG, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 10th day of November A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof the a be e cluded fro the beneft of an distribution made before such claim is proved.
Dated this 11th day of October A.D. 2024
ANGELA CASTANHEIRA RIBEIRO LIQUIDATOR
Legal Notice NOTICE
PEBBLES INC.
NOTICE IS HEREBY GIVEN as follows:
(a) PEBBLES INC. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the 8th day of October 2024.
(c) The Liquidator of the said Company is Baird One Limited of Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Dated this 15th day of October A.D., 2024
Baird One Limited Liquidator
senior assessors who have more work than they can handle in a timely manner”. He added: “At the end of the day, our reputation is the loser, and we will find transactions that have fallen apart.
“For some people, money coming from a transaction, the sales proceeds, are needed urgently, and if the transaction drags on for too long you cannot complete the purchase because of the delay in closing.
“In my experience, it’s more of a frustration to the market at this stage. I’ve not dealt with too many matters where the Department of Inland Revenue has not finally come around in terms of something reasonable in terms of reassessment. But you cannot predict when it will be resolved and it shouldn’t be that way in the first place.”
Mr White also voiced the frustration of many realtors and attorneys that the Department of Inland Revenue appears to treat all submitted conveyances and transaction prices as automatically suspicious.
“If there are persons trying to evade the Department of Inland Revenue by setting a price on a deal that is lower than what was actually paid for it to reduce the amount of taxes payable, those individuals should be penalised but the industry should not suffer for one or two,” he told Tribune Business
“I’ve not had a transaction in the 20 years that I’ve practiced where there’s been a price on the documents and another price paid under the table. I expect the industry is being
penalised not because of the poor conduct of any players in it but the necessity of this government to increase revenue collection.
“They are basically holding transactions hostage until the vendor and purchaser agree to pay a higher amount of VAT as the transaction is at risk of being lost. We don’t need that in this country. We have so much going for ourselves in terms of all our industries,” Mr White continued.
“We shouldn’t be as desperate for revenue as we find ourselves in right now. We’ll be in a poorer position if we continue to frustrate business, frustrate business and turn revenue away because of forced delays.”
Mr Fernander, though, last week told this newspaper that the Department
of Inland Revenue “needs some clarity if there is a drastic difference in value” as a result of the sales price being 15 percent lower, or higher, than a property’s appraised value for real property tax purposes.
Another warning sign, he added, was if the conveyance value did not align with comparative property prices for the same neighbourhood. “What we see is that some are questionable on the neighbourhood comparatives,” Mr Fernander explained.
“We don’t know if these are fire sales, but the values coming in are not in comparison with the comparatives the Department of Inland Revenue has. There are difficulties on that end with accepting the value. There’s a need for education for what is
fair market value versus the sales price.
“Realtors needs to better educate their clients on the transaction to make that transition easy. Every property has an assessment number and valuation, so they will know the [sales] valuation is off before they advise the client. If it goes beyond our benchmark, we have to question what is causing it.”
The Department of Inland Revenue’s operations chief said the intention was not to halt or interfere with economic activity. However, realtors have warned that delays threaten to have “a domino effect” because, if sales are lost due amid demands for a higher than expected VAT payment, multiple industries lose out while the Government misses valuable revenue.
Minister hits back on $60m Glass Window Bridge cost
FROM PAGE B3
geotechnical stage, coupled with construction inflation cost over the past five years, have brought us to the final cost of $60m.” Mr Sweeting added that the Bahamian Contractors Association (BCA) confirmed the cost of materials had increased by 60 percent since the pandemic, and invited Mr Bannister to review the plans for the Glass Window Bridge before casting aspersions and “attempting to cause alarm”.
Legal Notice NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)
In Voluntary Liquidation
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies TOLIN INTERNATIONAL TRADING LIMITED (the “Company”) is in dissolution. The date of commencement of the 10th October 2024. Jose Maria Kong is the Liquidator and can be contacted at 4a. Avenida 20-44 zona 14, Guatemala, Guatemala. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before Docusign Envelope ID: 83C5B88A-611E-487F-B0C9-CEFE9C202C06
NOTICE
LAFICA LIMITED
NOTICE IS HEREBY GIVEN as follows:
(a) LAFICA Limited is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the10th day of October 2024.
The minister said Cabinet has approved funding for the bridge through a loan from United Kingdom Export Finance (UKEF) and, once the agreement is finalised in 2025, construction will begin with work expected to be completed by early 2027.
“The Cabinet of The Bahamas recently approved the use of United Kingdom Export Finance (UKEF) credit support to finance the construction of the Glass Window Bridge,” said Mr
“This approach benefits the Government by accelerating project delivery and securing financing at competitive rates. The Ministry of Finance has confirmed that the loan will be secured through the Bridge Authority.
“It is anticipated that the loan agreement will be finalised in early 2025, with funds drawn down, allowing construction to begin. This suggests a completion date for the bridge for early
(c) The Liquidator of the said Company is Baird One Limited of Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Dated this 15th day of October A.D., 2024
Baird One Limited Liquidator
Incorporated as an Exempt Limited Partnership under the Laws of the Commonwealth of The Bahamas. Registration Number 167ELP (In Voluntary Liquidation)
Notice is hereby given pursuant to section 138.4 that the above-named Exempt Limited Partnership (“ELP”) is in dissolution, commencing on the 9th day of October A.D. 2024.
Written consent of the General Partner has been duly registered by the Registrar. The Liquidator is Crowe Bahamas, Suite # 0587, Harbour Bay Centre, Shirley Street, Nassau, The Bahamas, P.O. Box AP-59223. Email andrew.davies@ crowe.bs. Persons having a Claim against the above-named ELP are required on or before the 13th day of November A.D. 2024 to mail and email their names, addresses and particulars of their debts or claims to the Liquidator of the ELP, or in default thereof the a be e cluded fro the beneft of an distribution made before such claim is proved.
Dated this 14 day of October A.D. 2024
Crowe Bahamas Liquidator
(c) The Liquidator of the said Company is Baird One Limited of Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Dated this 15th day of October A.D., 2024
Baird One Limited Liquidator
Notice is hereby given pursuant to section
# 0587, Harbour Bay Centre, Shirley Street, Nassau, The Bahamas, P.O. Box AP-59223. Email andrew.davies@ crowe.bs. Persons having a Claim against the above-named ELP are required on or before the 13th day of November
HLB Bahamas names new managing partner
THE HLB Bahamas accounting firm has moved swiftly to name a new managing partner following last week’s sudden passing of Philip Galanis.
The company, in a statement, announced his long-time colleague, John S. Bain, as its new managing partner with immediate effect following the tragic loss of the former PLP MP and Senator.
“Philip was a highly respected accounting figure known for his dedication, leadership and kindness,” HLB Bahamas said in a statement. “A former president of the Bahamas Institute of Chartered Accountants (BICA) and the Institute of Chartered Accountants of the Caribbean, he significantly contributed to the firm and the accounting profession in The Bahamas and the Caribbean during his tenure.
“His loss will be deeply felt by colleagues, clients and many others whose lives he touched.” The appointment of Mr Bain, former partner, advisory, at HILB Bahamas is designed to ensure continuity and stability.
“Philip’s passing deeply saddens us, but we are committed to carrying forward his legacy,” said Mr Bain. “Our firm remains steadfast in delivering the same level of excellence and service that our clients have come to expect. With the support of our dedicated team and fellow partners, we will continue to build on the
strong foundation that Philip established.”
Mr Bain brings more than 37 years of accounting experience to the firm. Its three partners- Mr Bain; Shoneva Abraham, partner, audit; and Rae Turnquest, partner, accounting and tax - remain united in maintaining high service standards for all clients and stakeholders.
HLB Bahamas also reassured clients and stakeholders that all ongoing engagements and relationships will continue as planned without interruption. Meanwhile, Pretino Albury, BICA’s president, in a statement on behalf of the Institute, said both “his dedication to the profession and to the development of The Bahamas was truly unmatched”.
“It is with profound sadness that we acknowledge the passing of Philip Galanis, a distinguished member and past president of the Bahamas Institute of Chartered Accountants (BICA) from 1988 to 1992,” Mr Albury added in a statement.
“Mr Galanis played an instrumental role in advancing the accounting profession, advocating tirelessly for the highest standards of excellence and integrity. His visionary leadership laid the foundation for BICA’s continued growth and success, shaping the Institute into what it is today.
“Throughout his career, Mr Galanis selflessly served in numerous leadership roles,
not only within BICA but also on the wider regional stage, where he was elected president of the Institute of Chartered Accountants of the Caribbean (ICAC).”
Mr Albury said Mr Galanis served as the former managing partner of Ernst & Young (Bahamas), and later founded HLB Bahamas in 1998 where he served as managing partner. “In addition to being a chartered accountant (CA) and certified public accountant (CPA), Mr Galanis also held the designation of certified valuation analyst (CVA), a testament to his depth of expertise,” he added.
“He was always generous with his time, knowledge and leadership, readily sharing his vast experience with the next generation of accountants.... On a personal note, Mr Galanis both challenged and supported me in equal measure during our time together. I believe the former was driven by the latter - his belief in my potential and his unwavering commitment to upholding high standards, something increasingly rare in today’s world.
“Mr Galanis will be deeply missed. On behalf of the Council and members of BICA, we extend our heartfelt condolences to his family. His memory and the invaluable contributions he made to the accounting profession and to our nation will never be forgotten. His legacy is firmly etched in our history.”
‘VERY SERIOUS TAX CONCERNS’ FOR EXUMA’S ‘CROWN JEWEL’
with a copy of each homeowner’s real property tax payment as of June 30, 2024.
“In an effort to expedite and amicably resolve these matters, I am urgently requesting your assistance with obtaining copies of your most recent real property tax payments. If you have made suitable payment agreements with the real property tax department (DIR), I am also requesting confirmation of such agreements,” Mr Dwyer added
“This is an extremely urgent matter and requires your immediate attention and assistance in providing the requested documentation. We are required to provide this information no later than Monday, September 30, 2024.”
Mr Dwyer could not be reached for comment over the weekend, and did not reply to messages left on his cell phone by Tribune Business. This newspaper, though, understands that the nature of the discussions with Mr Wilson and the meeting’s outcome triggered a hasty scramble by February Point Associates, the project’s holding company, to comply with the demands.
It is understood that the information and documents sought by the Government were largely supplied by the deadlines imposed by the Ministry of Finance because the urgency was greater
than the homeowners were led to believe. Well-placed sources, speaking on condition of anonymity, told this newspaper that the the developers were informed the Ministry of Finance/DIR would seek to use their power of sale, and begin the process of auctioning off properties deemed to be tax delinquent, unless the proof of real property tax payment and other details were supplied within 14 days.
The Ministry of Finance and DIR are seeking to better determine the actual tax liabilities that may be owed by February Point, as the developer, and its homeowners to the Government. In particular, the tax authorities believe close to $3m in real property tax may be owing, with this sum split just about evenly between the developer and homeowner.
The allegedly outstanding sum dates back a decade to 2014, which is the same year when Florida-based investor, John McGarvey, teamed with a group of existing homeowners to acquire February Point from the Hart family for $8.2m. Mr McGarvey and his brother, Jeff, did not reply to detailed e-mails seeking comment that were sent to their respective addresses. However, it is understood that the developer will likely dispute at least a portion of the sum that the Department of Inland Revenue alleges it owes.
NOTICE
NOTICE is hereby given that MICHELET DANIEL Barcardi Road, New Providence, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 8th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
February Point Associates’ annual property tax billing for its vacant, unsold land, valued at around $6m is understood to have more than tripled to close to $150,000 for some of the ten years since 2014.
And there are also questions over whether the developer and at least some homeowners were exempt from real property tax during that decade as a result of the project’s Heads of Agreement with the Government. Tribune Business understands the aim was to exempt all homeowner units placed in a rental pool, as well as numerous developer properties, from the tax.
Yet February Point’s Hotels Encouragement Act agreement, which covered most of the tax breaks, investment incentives and concessions provided to the project, expired on March 31, 2024, and has yet to be renewed. And, as this newspaper reported in May 2024, there are questions over whether the developer has sufficiently lived up to its commitments to justify granting this relief.
“The Hotels Encouragement Act agreement has expired. The expiration date was March 31, 2024,” one well-placed source, speaking on condition of anonymity, said. “They have not renewed it. The developer has to live up to its commitments. Every single last piece of property in there was supposed to have real property tax
exemptions once there was development.”
This newspaper reported in May how there were fears that the Government may demand the retroactive payment of Customs/ import tariffs and real property taxes by February Point homeowners on the basis that the developer had failed to live up to its Heads of Agreement commitments.
Mr McGarvey and his partners, in their application for Bahamas Investment Authority (BIA) approval back in 2012-2013, had pledged to make a $40m capital investment and “immediately create approximately 130 permanent construction jobs for Bahamians”.
Condominiums, town homes and fractional development was also promised, along with a “hilltop boutique five-star branded hotel and beach club”, but this newspaper was told that none of this has materialised with the developer/ownership not selling a single new home or lot during their decade in charge.
February Point’s woes were detailed in a missive, which appears to have been a circular to the project’s homeowners dated January 6, 2023, that was leaked to the media.
“It is unclear that February Point actually is in good standing with the Government and can allow others to benefit from the tax relief afforded by the Hotels
NOTICE
NOTICE is hereby given that ADELPHIN ALEXANDRE of Lewis Street, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 8th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Encouragement Act,” it said. “Homeowners are at risk if compliance was not in effect, and they filed and took relief for the years that coverage had possibly lapsed.
“We have been told by home owners that recently sold their home that they had to pay back taxes to clear their title for sale...... We have uncovered that the issue that persists is that February Point has not done enough development through the years since the original approval, and now has fallen into oversight by the Government.
“The [Department of] Inland Revenue has taken exception and will not recognise that February Point complies under the Hotels Encouragement Act. This causes all kinds of issues for new buyers and existing homeowners trying to sell and have been taking relief of taxes under the Hotels Encouragement Act.”
Mr Wilson did not respond to Tribune Business calls and messages seeking comment before press time. However, this newspaper was told that similar demands to those imposed on February Point may also have been sent to other high-end, resort-style real estate developments dotted around The Bahamas.
“The Tax Department has taken a very, very aggressive approach to recovering taxes,” one source, speaking on condition of anonymity, revealed. “What they have done is that they have gone to a number of resort residential developments, spoken to a number of people in the business
of collecting homeowner association fees, and said to them: ‘We want you to tell all the residents to provide evidence of their tax statements and liabilities owing.
“It’s delegating to those people the obligation to recover taxes. It’s an horrendous thing. From what I understand that they’ve done that in a number of places. At the moment I believe this is fishing and a fact-finding mission; who owes, who owns, who doesn’t own and how many Bahamian property owners are there.”
As for February Point in particular, the source said: “As I understand it, McGarvey said to the owners they are exempt from the payment of taxes if their homes are in the rental pool. That’s where the confusion lies. One the one hand you have people paying taxes, and on the other side you have people paying nothing because McGarvey said they fall under the Hotels Encouragement Act exemption.
“The developer has not lived up to his obligations. I don’t know if the Government is going to claw back or terminate the Hotels Encouragement Act agreement. Even if that hasn’t expired, there was an obligation on the part of the developer to do certain things. That hasn’t happened, and I was wondering if the Government was going to claw back and recover taxes.”
The Government is understood to have taken the position that February Point, and other resort-style communities similar to it with homeowners associations, should have records of real property tax payments by homeowners liable to pay the tax.
NOTICE
NOTICE is hereby given that Ashley AmAndA FrAncis of Tasmine Circle, Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that RONALDO PETIT-HOMME Fox Hill Road North, New Providence, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 8th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of October, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
