Sarkis security: CCA ‘willing to pledge’ $355m Nassau resorts
By NEIL HARTNELL
Tribune Business Editor nhartnell@tribunemedia.net
Baha Mar’s contractor yesterday asserted it is “willing to pledge” its two Nassau resorts, which have a combined value of up to $355m, as security for its appeal against Sarkis Izmirlian’s $1.642bn damages award.
China Construction America (CCA) and its two Bahamian affiliates, in filings with the New York State Supreme Court’s appeal division, effectively accepted the challenge from Baha Mar’s original developer and agreed to use both the British Colonial Hilton and its office complex, plus the Margaritaville Beach Resort and The Pointe, as collateral to enable them to pursue overturning the original verdict.
Mr Izmirlian last week urged the Chinese stateowned construction company and its affiliates,
* ‘No impact’ on British Colonial, Margaritaville operations
* Set to use downtown Nassau hotels as appeal collateral * New York judge ‘piled error on error’ in $1.642bn verdict
CCA (Bahamas) and China State Construction and Engineering Corporation (CSCEC) Bahamas, to pledge both downtown Nassau resorts as security even though the combined value of their real estate appears to be less than one-fifth of the $1.9bn surety bond that it initially sought to obtain.
CCA, describing the British Colonial and Margaritaville Beach Resort as the “only two significant assets” owned by itself and its affiliates, said that to “secure a stay of enforcement” of Mr Izmirlian’s damages award it is now prepared to pledge all the shares that provide it with ownership of the two hotels as security so the
Immigration $200 fee memo not universally applied by all
By NEIL HARTNELL
BAHAMIAN marinas yesterday voiced optimism that the Deputy Prime Minister and Immigration have cleared up the “confusion” over the $200 ‘stay extension’ fee ahead of the peak winter boating season.
Peter Maury, the Association of Bahamas Marinas (ABM) president, told Tribune Business he had
been using all available social media channels to post a Ministry of Immigration and National Insurance announcement that “passengers and crew aboard pleasure vessels”, as well as “regular winter residents” and second homeowners, will receive “special consideration” regarding the fees.
The notice was issued after Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, sought
to clarify that the $200 nonrefundable fee that must be paid so that non-Bahamians can extend their stay in this nation applied only to long-term work permit holders - not tourists.
Seemingly speaking out in a bid to alleviate visitor confusion over whether they needed to apply for an extension, Mr Cooper told ZNS: “Firstly, there is misinformation on this issue. I have spoken with the minister responsible for Immigration, and the
director for Immigration, and they have released a clarifying memorandum for all Immigration officers across the country that this doesn’t apply to tourists.
“This does not apply to home owners, this does not apply to cruising permits. This was designed really for the renewal of work permits, long-term work permits in particular. So we must be sure that we get the understanding out that this is not an impediment for short-term stays, this
AG: SHIPPING FIRMS MAY BE EXCLUDED FROM CORPORATE TAX
By FAY SIMMONS
jsimmons@tribunemedia.net
THE Attorney General yesterday said shipping companies may be excluded from the 15 percent corporate income tax in a bid to attract the likes of cruise lines to base their headquarters in The Bahamas.
is not an impediment for tourists in any way; cruising and stopovers; that this applies only to long-term work permit applications.”
However, based on social media postings by frustrated visiting boaters, it appears that the memo has yet to be viewed by all Immigration officers.
“There is a lot of conversation right now around the allowed length of stay and the new fees being charged
‘CAN’T
GO HIGHER’: INSURER SAYS NO MAJOR HIKE IN ‘25 STORM COVER
INSURERS yesterday voiced optimism that Bahamian consumers will see “no significant increases” in hurricane coverage costs in 2025 after telling global reinsurers: “We cannot go any higher.”
Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that international reinsurers seemed to be receptive to the message delivered by himself and other Bahamian underwriters that local homeowners and businesses have “reached the point” where all-perils catastrophe coverage becomes increasingly unaffordable if there are any further rate hikes.
Expressing confidence that this warning has been heeded, he added that despite an unusually active 2024 “hurricane season from hell” - with more than 80 percent of storms that formed striking landthe resulting damage and global insurance industry payouts/losses have not been as severe as feared.
As a result, Mr Saunders told this newspaper that pressure for further substantial property premium increases in The Bahamas market has lessened in the immediate term at least. And, given The Bahamas’ stable status, he said this nation stands to obtain “some small increases in capacity” from reinsurers for 2025.
This, the RoyalStar chief added, will enable the underwriter to accommodate existing clients who are seeking to increase their “sums insured” and thus maintain 100 percent
SARKIS ALLY: ‘CONSEQUENCES FOR PLAYING WITH THE BIG BOYS’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A key Sarkis Izmirlian ally last night asserted that Baha Mar’s contractor must “take the consequences if you’re going to play with the big boys” after it pledged to use its two Nassau resorts as security for its appeal.
“cannot cry wolf at the 11th hour” and suddenly say it cannot put up the $1.9bn bond mandated by the court before its appeal against Mr Izmirlian’s $1.642bn damages verdict can proceed, reiterating that he found it “inconceivable” that CCA and its affiliates would carry out their threat to go into bankruptcy and liquidation.
Explaining that this is one of several potential tax incentives that will be unveiled during February’s mid-year Budget debate, he said these will help to attract new investment and keep The Bahamas
Ryan Pinder KC, speaking in the Senate on the Domestic Minimum Top Up Tax (DMTT) legislation designed to give effect to the 15 percent levy on large multinationals, said shipping companies may instead be subjected to a “tonnage tax” although the precise terms were still being worked out between the Ministry of Finance and Bahamas Maritime Authority (BMA).
Dionisio D’Aguilar, speaking as China Construction America (CCA) and its Bahamian affiliates said they were “willing” to use the British Colonial and Margaritaville Beach Resort to meet the collateral required by the New York State Supreme Court’s appeal division, told Tribune Business that it had long known it had to “pay to play” to use the US legal system. He argued that the Chinese state-owned company
“In the state of New York, when you lose the case you can appeal, but you have to pay to play and put up a bond of approximately $2bn, secure the bond, and if you can’t put up the bond you cannot appeal. Those are your two options,” Mr D’Aguilar told this newspaper.
“This ‘bankruptcy’ word is being floated around, and it’s incredible, it’s inconceivable, that a Chinese state-owned company
A VIEW of the British Colonial hotel on Bay Street.
Photo: Chappell Whyms Jr
RYAN PINDER
Senator challenges payment of Business Licence on projections
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
AN Opposition senator yesterday challenged why he and other entrepreneurs must now pay their Business Licence on projected rather than actual turnover.
Reuben Rahming, during the debate on legislation to implement a 15 percent corporate income tax, questioned Michael Halkitis, minister of economic affairs, on why companies must now calculate their annual fees based on forecast rather than actual turnover revenue.
“I do run small businesses, and it was reported to me, and maybe Senator Halkitis could help clarify this, that Inland Revenue has been requesting, demanding that taxes be paid on the estimated turnover for the business ahead of time,” he said.
“Which is you pay taxes on what you project you’re going to make, and then you know, nobody expect
no credit coming back from no government, and if you don’t meet those projections, then what? I need to know the reason and the rhyme behind that, because that definitely doesn’t sit well with us small business owners. Maybe he could clarify that.”
Mr Halkitis said companies will receive a credit if they over-estimate their turnover and Business Licence fees, while adjustments will be made if they under-estimate.
“My understanding is, as you’re applying for Business Licence, let’s say you’re renewing it this coming January... when you renew, you will do an estimate of your turnover. And if you underestimate, they’ll make an adjustment when you do your return. If you overestimate and pay too much, they will give you a credit,” said Mr Halkitis Mr Rahming argued that the practice was “unfair” as many small businesses cannot afford to part with funds up-front on revenue they are not sure they will
make over the course of the year. He added that it is “gouging on behalf of the administration to force businesses to pay on an imaginary projection”.
“We don’t want to be counting monies that we ain’t get, but yet Inland Revenue doing that to us, taxing us on the projections, even to the extent that they are predicting what our projections will be, and then we have to pay that. And if you don’t pay that, we don’t get our Business Licence,” said Mr Rahming.
“Especially with taxes, you know, let me pay what is due to me. And you have the options. You have the options to audit if you so choose. But I believe it is totally unfair, and it’s gouging on behalf of the administration to force business to pay on an imaginary projection.
“How could you do that in transportation, when people cancelling in bad weather; any kind of different type things? How we could do it on contracts that may be contingent upon so
STRONG BAHAMAS PRESENCE FOR ASIAN FINANCIAL SUMMIT
THE Bahamas sought to make further inroads into the Asian financial services market through a strong industry and government presence at a recent major estate planning conference. This nation’s trade laws and compliance with international best practices were discussed at the 2024 Society of Trust and Estate Practitioners (STEP) Asia conference, which was held at the Marina Bay Sands Resort in Singapore. The event brought together financial services professionals from around the world to discuss issues that shape family planning strategies.
Theo Burrows, STEP Bahamas branch chair, said: “The conference provided a unique platform to delve into cutting-edge global family wealth strategies, with engaging sessions on compliance, asset protection
and essential insights for managing the intricate challenges of international wealth planning.”
The Bahamas’ delegation at the conference included Michael Halkitis, minister of economic affairs, and John Lawrence, chief executive of the Windermere Group (Bahamas) and immediate past president of the STEP Latin America conference.
Mr Lawrence said: “STEP Asia was a highlight to end the last quarter of 2024 … A number of discussions emphasised The Bahamas’ robust trust laws, favourable financial environment and dedication to international standards. Whether you are looking to protect assets or lay a foundation for generational wealth, The Bahamas has a legacy of excellence to offer.”
The Bahamas’ ministry of economic affairs
sponsored the panel discussion, ‘Matchmaking of compliance and business’, which talked about tightening anti-money laundering (AML) regulations, as well as a dinner during the conference.
The Bahamas’ presence was also designed to support the country’s efforts to establish itself as a global arbitration hub, with the goal of having Bahamians appointed to the Permanent Court of Arbitration and forming partnerships with the Hong Kong International Arbitration Centre.
The event began with regional insights into emerging trends and opportunities across south-east Asia, China and the Middle East, focusing on issues such as tax transparency, economic substance, the role of offshore jurisdictions, compliance regulation and other issues.
many other businesses and their stability, or even their marketing pitch? They may decide I didn’t want to do things with you, and so I don’t see how reasonable that is.”
Mr Halkitis said businesses can use their earnings from the previous year to project those for the upcoming year, making adjustments for the trade they expect. “You apply for Business Licence for, let’s say, to operate for 2025, so you’re paying for your licence to operate in 2025. Now you would base it on your projection for 2025. But previously, you would base it on what you projected for 2024, so you make an adjustment. You know, you think some more business or a little less business,” said Mr Halkitis
Mr Halkitis maintained that as the tax season approaches business owners will appreciate how much easier the process will be compared to last year. “I think people will see us as we go through this season coming up, which we’re
approaching, I think it will be much, much easier. I think as you go through this exercise, you would see that would be much more, much easier than it was last year,” he added.
Meanwhile, Ryan Pinder KC projected that the implementation of the new 15 percent corporate income tax for large multinational enterprises operating in The Bahamas could generate up $200m in new annual revenues to place the Government in a Budget surplus.
During his contribution to the Domestic Minimum Top Up Tax (DMTT) Bill debate, Mr Pinder argued that although the tax was expected to bring in at least $150m, there is at least one multinational company operating in The Bahamas that brings in over a $1bn in profit. Due to this, he expects more than $200m to be collected from the new tax. “It is anticipated that this new tax regime will generate at least a minimum of $150m in new revenue for the country.
But it may be much more than that. And my anticipation is that would be over $200m. Absolutely, absolutely, absolutely…,” said Mr Pinder.
“There’s one multinational enterprise in this country that is making over a $1bn in profit, over $1bn in profit that’s been in the papers, that’s in the public domain, right? So my anticipation is it’d be an excess of $200m in new revenue for the country. I think that puts us immediately in a Budget surplus. Immediately, for the first time ever, since independence.” Mr Halkitis said the income from the tax is expected to be “in the region of $140m” but it “might be more, it might be less”.
“The estimates are in the region of $140m. It might be more, it might be less. Hopefully it’s more to be able to use that to improve the lives of Bahamians and ease the burden. And you will be hearing some initiatives coming forth very soon,” he added.
‘Can’t go higher’: Insurer says no major hike in ‘25 storm cover
FROM PAGE B1
coverage for properties that have increased in value. And it may also be able to take on, and provide insurance for, new real estate developments that cannot proceed or obtain approvals without catastrophe coverage.
Mr Saunders was backed by Tim Ingraham, Summit Insurance Company’s chief executive, who told Tribune Business that hurricanes Helene and Milton, in particular, “do not appear” to have pushed property insurance premiums higher for 2025. However, he warned that prices will still remain “elevated” compared to prior years, while multibillion dollar storm payouts in 2024 will “likely prevent” any rate reductions.
The RoyalStar managing director, who has just returned to The Bahamas following a series of meetings and negotiations over the carrier’s reinsurance treaty arrangements for 2025, said: “I can just tell you based on the talks that I have had that reinsurers, after [tropical storm] Sara, are hoping this hurricane season from hell is over and comes to a conclusion quickly.
“The sad thing about this hurricane season is that 80 percent of the storms that formed have hit something. That’s not normally the case. But, even with that percentage of hits, the good news is that Milton did not go through Tampa, so the expected losses that everyone was bracing for were not realised.”
And, with insurance and reinsurance rates having increased worldwide, Mr Saunders expressed hope that this year’s hurricanerelated losses and payouts will impact industry earnings (income statements) rather than create holes in balance sheets. The latter, he explained, would be the worse outcome for The Bahamas.
Turning to the implications for this nation’s homeowners and businesses, he told Tribune Business: “We are optimistic we should get all the capacity we had last year, and some small increase in capacity [for] new developments plus sums insured that people want to increase because of the law of averages. “Some people want to increase their sums insured to replacement value. With the small increase in
• Preparing general ledger postings
• Account reconciliations
• Payables processing and vendor payments
• Customer billings and collections
capacity we are likely to get, we will be able to deal with that and some organic growth with all the developments happening around the Caribbean.”
Following successive years of multi-billion dollar hurricane-related losses in Florida, the US gulf coast and wider Caribbean, some reinsurers have either exited the region and business altogether or reduced their exposure. This has created concern over whether The Bahamas will be able to access sufficient reinsurance supply, with previous capacity and availability reductions having driven much of the premium cost hikes.
Both The Bahamas and local property and casualty insurers are effectively ‘price takers’ in the global reinsurance markets. This is because Bahamian underwriters do not possess large enough balance sheets to enable them to cover all the real estate and other risks, valued at billions of dollars, which are exposed to hurricanes and other perils on an annual basis.
They therefore have to purchase large quantities of reinsurance to enable them to underwrite these risks, and protect homeowners
• Clerical assistance and other administrative tasks
Applicants should have the following attributes:
• 3-5 years’ experience in an accounting department
• Proficiency in QuickBooks and MS Office
• Must be well organized and pay attention to detail
• Good communications and team building skills
• Must be professional and well presented
The position offers an attractive package of compensation and benefits.
and businesses from losing their most valuable assets to storms and climate change-related events. As a result, it is reinsurers and their demands that largely dictate the premium prices paid annually by Bahamians.
While reinsurance capacity/availability appears not to be a concern for 2025, Mr Saunders yesterday said it would be “a double whammy” if persons failed to properly insure assets that are wiped out by hurricanes, as then the Government and taxpayers have to step in to finance their replacement.
“When it comes to prices, let me be very careful,” the RoyalStar chief said. “We don’t expect any significant increase in prices for The Bahamas and eastern Caribbean, where we also do business, but there might be some fluctuations in the Turks & Caicos and the Cayman Islands.
“There might be oneoffs where people are below the book value of insurance, but we don’t expect any significant price increases in The Bahamas.” RoyalStar underwrites risks in multiple Englishspeaking jurisdictions in the Caribbean, including Anguilla, the British Virgin
Islands and US Virgin Islands, in a bid to diversify its geographical risk concentration.
And, acknowledging that The Bahamas has reached a catastrophe insurance affordability tipping point, Mr Saunders told Tribune Business: “We keep stressing in the insurance market that The Bahamas has been stable for a long time, and has reached a point of affordability. We’ve told them we’ve reached that point and cannot go any higher.
“The message has been listened to. They’ve been listening.... I have never had more sleepless nights because of this hurricane season since every territory we participate in got a tropical storm, but we got no damage. Sometimes you’re lucky, and sometimes you’re not.”
Mr Ingraham, whose Summit Insurance is the underwriter through which Insurance Management places much of its property and casualty business, said: “On the issue of premium pricing for 2025, hurricanes Helene and Milton do not appear to have pushed prices higher, but have reminded the industry of the risks and will likely prevent a reduction in rates.
“Reinsurance capacity for catastrophe risks continues to be in short supply with demand for the cover increasing.
“This will also likely mean that rates will remain at an elevated level for 2025, given the laws of supply and demand.
“For the first nine months of 2024, the [global] insurance industry paid out $108bn in insured losses, and this was before factoring in the impact of Hurricane Milton.
The $108bn is 5 percent higher than the recent ninemonth average. This will also prevent any major slippage in rates.”
Mr Saunders, meanwhile, added of RoyalStar’s financial outlook: “For us, if the next six weeks go well and attritional losses don’t pick up, we should hit our budget targets [for 2024]. We prepare for the worst every season and hope for the best. We don’t want another Dorian but it’s not in our hands.
“The whole industry wants to build stronger balance sheets so we retain a bit more risk, and the other thing we want is affordability of our product so people can purchase it and get the sums insured up as best they can.”
Immigration $200 fee memo not universally applied by all
FROM PAGE B1
by Customs and Immigration,” one wrote. “As is sadly typical of this island nation, application of the rules varies widely. “Cruisers experience completely different interpretations of the rules on a regular basis depending on port of entry. There doesn’t seem to be that much discretion in the rules, but it is certainly taken by the officers. As of September, there is a $200 per person fee any time an extension of stay is requested.
“The minister of tourism, Chester Cooper, has himself said that the new fee was never intended for tourists or cruising permits. He said it was only intended for long-term work visas only. It’s on video; his words are clear. Yet while checking in yesterday, Immigration told me flat out that isn’t true. I mentioned the comments from the man in charge, and she stated: “That isn’t true; everyone has to pay the fee.”
Prime Minister Philip Davis KC had warned the measure was coming when he unveiled the 2024-2025 Budget at the end of May. “The Immigration Department will also implement a Visitors Stay extension application fee of $200. This will cover the costs of issuing a visitors’ card,” Mr Davis explained, explicitly stating that it would impact tourism.
It is unclear whether Mr Cooper’s comments represent a back track or climb down in the face of concerns and opposition from tourism-related industries and businesses. However, it is standard practice for the Immigration Department to charge a non-refundable processing fee - whether $200 or another sum - to cover the costs, and recover the expense, associated
with various permit application types. And The Bahamas, like all sovereign states, has the right to at all times regulate and manage its borders, determine who is within its territory and decide how long it will permit them to stay. And the $200 one-time fee, in and of itself, is hardly a huge sum for visiting tourists and boat crews to pay if they decide to extend their stay and original cruising permit.
However, Mr Maury yesterday said its end-September implementation had further worsened analready “confusing” and bureaucratic process for visiting boaters entering The Bahamas by adding another layer of inconvenience.
The Immigration flyer confirming its September 18, 2024, introduction appeared to require all applicants to now “book an appointment” via the Department’s website and physically attend in person to obtain the extension of stay. This also has
to be accompanied by the cruising permit, proof of payment and contact details.
Mr Maury, though, said Mr Cooper’s comments were supported by yesterday’s Ministry of Immigration and National Insurance notice that pledged boaters will receive “special consideration” when it comes to extending their stay in The Bahamas. It did not, though, state that they will be exempt from the requirements.
The notice clarified that all tourists visiting The Bahamas for vacation or leisure will be “granted a minimum stay of 30 days” in line with current policy, which is enforced at the discretion of Immigration officers. Those seeking to extend their stay must apply at the nearest Immigration office at least five days in advance of the expiration of their initial permission.
Marina operators have also previously complained that the length of stay granted to visiting boaters
by Immigration often fails to align with the cruising permit duration, which are typically issued for three months to a year. Mr Maury yesterday said visitors must check to ensure the two are properly aligned to guard against having to return to Immigration for repeated stay extensions. However, he added that it was critical Mr Cooper had provided clarification ahead of the Thanksgiving and Christmas holidays that mark the start of the winter boating season. “We were having all kinds of people
saying they would not come to The Bahamas again because of this,” Mr Maury told Tribune Business. “It was already confusing, and that’s what we’ve been kind of complaining about and working on. I think this kind of sorts it out. I’m glad they didn’t wait for the day before, like they did in some cases, so this gives us plenty of time. Now we have it in advance of Thanksgiving. Our busy time is Christmas and New Year. That’s key. We’re well ahead of the curve right now.
“I was posting it [the announcement] and putting it out there today.... We haven’t seen anybody check in since this came out in writing.
“We’re still waiting for the boats. The weather is clearing up in the next couple of days. We have arrivals hopefully for Thanksgiving and everything else,” he added.
“I sent it out today. A lot of marina operators are saying this is kind of what they needed. Nobody has said anything negative so it’s a good thing.”
AG: Shipping firms may be excluded from corporate tax
competitive after implementing the 15 percent corporate income tax on entities that are part of multinational groups with annual revenues above 750 million euros or $818m.
Mr Pinder said the tax incentives will apply to all companies, Bahamian and foreign-owned, and may include credits for firms that invest in capital expenditure and employee training. “It is of note that these incentive packages are not reserved for only Pillar Two qualifying entities,” he added, referring to the multinationals initially captured by the 15 percent corporate income tax.
“In order to be acceptable under the OECD regime, they must be available to all taxpayers. As
such, they must be carefully crafted in order to draw a balance between economic incentives for businesses and the revenue balance of the country,” said Mr Pinder.
“Examples of incentive packages may include extra-territorial turnover credits to attract headquarters businesses; capital expenditure credits to attract capital investment in the country; employee training credits to incentivise the enhancement of Bahamian workforce and employees; and local content spend credit to incentivise businesses to buy Bahamian.”
He added that the Government is also exploring an incentive that would exclude large shipping companies and the cruise lines from paying corporate
a $2bn bond, more power to you.
would contemplate such a course of action. I don’t consider that an option for the Chinese state. This is a company owned by the country that has the second largest economy on the planet. They can appeal, but they must pay to play or settle.”
As for CCA’s pledge to use its Bahamian affiliate’s two Nassau resorts, which have real estate worth up to a combined $355m, Mr D’Aguilar added: “If that helps them get closer to the number [$1.9bn] and fulfill the requirement stipulated by the appeal court, which is you have to come up with
“At least you’re getting closer to the number, but you have to pay to play.
That’s how it works in the US, at least in New York. You cannot cry wolf at the 11th hour and say you don’t have it and put yourself forward as a company ultimately owned by the Chinese state. If you’re going to play with the big boys, you have to take the consequences when things go wrong.”
CCA and its Bahamian affiliates, in legal filings with the New York appeal court yesterday, reiterated its argument that Baha Mar’s failure was of Mr
NOTICE is hereby given that WISLANDA BLEMIR, Garden Hills #1, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that WILLIAMSON GARCONVIL , Wulff Road, Nassau, The 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 19th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that KEVIN ROGER RICHARD DALEY, #19 Dean’s Lane, Fort Charlotte, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
income tax. Instead, they would be subject to a tonnage tax. Mr Pinder said the Ministry of Finance is partnering with the BMA to develop a framework for an initiative that could encourage large maritime companies to operate and base themselves in The Bahamas. “We also look to incorporate a sahipping exclusion, which would exclude from the corporate income tax shipping-related income. This income will be made up with a tonnage tax. We are working with the Ministry of Finance and BMA to frame what this would look like in the context of the industry and our national flag registry,” said Mr Pinder.
“Implementing a shipping exclusion would set the stage for major shipping and cruise industries
Izmirlian’s own making. It asserted that Baha Mar’s original developer failed “to provide the financial guarantee necessary to secure financing to restart the project, despite a contractual obligation to fund cost overruns”.
And it also claimed that Mr Izmirlian failed “to make an offer for Baha Mar’s assets acceptable to the Bahamian court-supervised receivers”, Deloitte & Touche. However, records from the time state the original developer was barred from bidding to buy the project back and that he had publicly stated he would beat any rival offer.
CCA, though, said Mr Izmirlian incorrectly describes the contractor and its Bahamian affiliates as a single group even though the American entity “was not the construction
to consider The Bahamas as a headquarters jurisdiction for the shipping companies’ worldwide operations. This, coupled with our strong maritime relationships and the BMA, can be a source of significant economic diversification and expansion for The Bahamas as a result of the method in which we implement the Pillar 2 corporate income tax.”
Prime Minister Philip Davis KC had previously clashed with Michael Pintard, the Opposition’s leader, over whether the Government has a mechanism to claw back revenues generated before the Bill becomes law as the G-20/ OECD initiative was supposed to take effect from January 1, 2024. The Prime Minister said the Bill states when it comes into effect.
manager on the project, was not a party to any of the relevant contracts, and ‘play[ed] no role’ in the project”.
Rejecting the New York State Supreme Court’s finding that it used $54m in financing intended to pay sub-contractors to instead acquire the British Colonial, CCA added: “The evidence was clear that the $54m that Baha Mar paid to CCA Bahamas was a settlement for construction expenses, including amounts CCA Bahamas had already paid to sub-contractors - and none of that money came out of plaintiff’s pocket.
“Nor did CCA Bahamas need that payment to purchase the British Colonial. Moreover, CCA Bahamas continued to work on the project even after Baha Mar stopped making required payments. It was Baha Mar
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, RANDI LACHAN WINDER of #5 Compass Ave, Chesapeake, Freeport, Grand Bahama Mother of ISAAC VALENTINO KNOWLES A minor intend to change our child’s name to ISAAC VALENTINO WINDERKNOWLES. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that VALENCE ESPERANCE, Pineyard Road, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that JACQUESSON DERIVAL , Highbury Park, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
During his contribution, Mr Pinder addressed these concerns, stating that the legislation clearly outlines when it will be brought into effect as well as enforcement provisions and penalties.
“Section 1(2) makes it clear that the legislation is effective as of January 1, 2024, for in-scope entities whose headquarters are located in a jurisdiction that has implemented and accruing Pillar 2 as of January 2024. For all other entities it is effective January 1, 2025,” said Mr Pinder.
“The Bill sets out the reporting requirements for in-scope entities in The Bahamas and the payment obligations. The legislation details the responsibility and authority of the secretary in implementing the legislation and tax regime.
that stiffed its sub-contractors and lenders, incurring at least $123m in trade debt when it filed for bankruptcy.
“The total number of workers on-site increased rather than decreased in early 2015, growing on net by over 1,000 workers. The total increased even though approximately 700 workers with expiring contracts returned home for Chinese New Year. This was a planned departure that was repeatedly disclosed to Baha Mar at the time.”
CCA added: “The trial court awarded damages based on the purported value of what plaintiff paid to purchase its controlling equity in Baha Mar in 2011 - assets ‘deemed’ worth $845m - rather than the value of that equity at the time of the purported breaches or fraud in late 2014 and early 2015.
The legislation also lays out the enforcement provisions, including the investigatory powers, procedure for assessments and penalties for non-compliance.
“The Domestic Minimum Top-Up Tax Bill 2024 successfully implements the OECD Pillar 2 minimum corporate income tax regimes. The Bill will be passed and brought into force before the end of this month.”
This will be the first such income-based levy in the country’s history, and is intended to ensure The Bahamas complies and fulfils its obligations as one of 140 countries that have signed on to the G-20/ Organisation for Economic Co-Operation and Development (OECD) drive for a minimum 15 percent global corporate tax.
“Had the trial court correctly applied New York law, damages would have been zero. That is because the unrebutted evidence at trial was that plaintiff’s equity was worthless - well before and independent of defendants’ conduct - because of plaintiff’s overspending and decision to subordinate its equity in Baha Mar to a $2.45bn bank loan that Baha Mar could never have repaid.
“Even before the missed opening date, the lending bank [China Export-Import Bank] told Baha Mar it was in default on the loan and had a $200m funding shortfall.
“And plaintiff’s own expert’s analysis showed that Baha Mar would have faced a five-year deficit starting in 2017, even if the project opened on March 27, 2015.”
NOTICE
NOTICE is hereby given that CLENISE
CEREMY SANCHEZ, Columbus Avenue, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that SANDRA ELIZABETH FERGUSON, P.O. Box N-10769, Pineyard Road, Nassau, 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 12th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
New York appeal can proceed. Genguo Ju, CCA (Bahamas) executive vicepresident, asserted in an affidavit that the shares giving it ownership of both resorts were valued at $146m in the company’s most recent audited financial statements. And an appraisal conducted earlier this year had priced the combined real estate worth of the two properties at between $232.7m and $355.1m.
“CCA (Bahamas), a Bahamian company, is primarily a holding company whose only material assets are its interests in two Bahamian subsidiaries. These two subsidiaries together own two hotels in Nassau, Bahamas: The British Colonial Hotel & Office Complex and the Margaritaville Beach Resort complex.
“Earlier this year, CCA (Bahamas) obtained appraisals of the two hotels from Cushman & Wakefield and Jones Lang LaSalle (JLL). Cushman and JLL appraised the collective value of the hotels as between $232.7m and $355.1m. CCA (Bahamas) would be willing to provide those valuation reports to the court [privately] and under seal, and to make them available to plaintiff subject to an appropriate confidentiality order.”
Reasserting CCA’s position that surety financiers would not accept the two Nassau resorts as collateral for the proposed $1.9bn bond, Mr Ju added: “Nonetheless, independent of any bond, CCA Bahamas
is willing to pledge its shares of its two subsidiaries as security against the judgment. “Those shares were carried on CCA Bahamas’ books in its most recent audited financial statement at approximately $146m. CCA Bahamas would be willing to provide that statement to the court in [private] or under seal, and to make it available to plaintiff subject to an appropriate confidentiality order. CCA Bahamas intends to continue to operate the hotels in the regular course during the pendency of this appeal.”
CCA, in a statement issued yesterday, reassured that staff and daily operations at both downtown Nassau resorts will not be impacted if it ultimately does use them as appeal security. This newspaper understands that it will be business as usual, with capital investment and maintenance also not impacted while the New York appeal process runs its course - which could take between one to two years. Nevertheless, the Chinese state-owned contractor argued that its willingness to use the two properties as collateral “underscores our confidence” that the appeal against a “fatally-flawed” New York State Supreme Court verdict - which “piled error on error” - will succeed.
And CCA challenged Mr Izmirlian and his BML Properties vehicle to drop their opposition to a stay preventing them from collecting their damages award given that it was agreeing to the very terms they have requested.
CCA and its affiliates, in a statement, said: “Our decision to provide this security
N O T I C E
International Business Companies Act (No. 45 of 2000)
SPICA CORPORATION
Registration No. IBC 207776 (B)
Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that SPICA CORPORATION has been dissolved and struck off the Register of Companies with effect from the 13th day of September 2024.
Galnom Ltd. Liquidator
N O T I C E
International Business Companies Act (No. 45 of 2000)
Crypto Sky International Limited Registration No. IBC 207847 (B)
Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that Crypto Sky International Limited has been dissolved and struck off the Register of Companies with effect from the 13th day of September 2024.
Galnom Ltd. Liquidator
N O T I C E
International Business Companies Act (No. 45 of 2000)
Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that Inversiones Uruguay Limited has been dissolved and struck off the Register of Companies with effect from the 23rd day of December 2023.
Galnom Ltd. Liquidator
not only underscores our confidence that we will prevail on appeal but also fully meets the conditions BML Properties itself proposed to the appeals court for a stay of enforcement of the trial court’s fatally-flawed decision.
“Given that the security we have offered the court is consistent with BML Properties’ proposal, BML Properties should inform the court that it agrees to a stay and allow the judicial process to take its course. As we have said previously, BML Properties brought about its own failures through its gross mismanagement of the Baha Mar project and the trial court piled error on error in finding otherwise.
“The actions we have now taken are in the best interests of all our stakeholders and, importantly, will have no impact on our operations or the operation of the British Colonial and Margaritaville Beach Resort hotels as we pursue our appeal.”
It remains to be seen, though, whether Mr Izmirlian will accept those terms and agree to a stay, or injunction, that would block him from enforcing the $1.642bn damages awarded to himself and his BML Properties vehicle until the appeal process is concluded and a verdict issued.
And, more importantly, it is also unclear whether
the New York appeal court will agree to using the two resorts as surety collateral given that the appraised maximum value of their real estate - $355m - is more than $1.5bn short of the $1.9bn security that bond brokers said was required.
The Bahamian government will also have to approve pledging the two downtown Nassau resorts as collateral. One attorney, speaking on condition of anonymity, said CCA’s proposed move will require National Economic Council (NEC) and Investments Board permission as well as exchange control approval from the Central Bank.
“You need Investments Board approval to act as a mortgagee and exchange control approval to pledge an interest in those shares,” they said. However, Mark Goodman, a member of CCA’s US legal team, said his client was determined “to maintain the status quo” pending its appeal.
Responding to Mr Izmirlian’s demand that CCA post “meaningful security”, Mr Goodman asserted: “To secure a stay of enforcement against all three defendants, CCA Bahamas would be willing to pledge its shares of its only two significant assets, its ownership of two subsidiaries that own two hotels in Nassau, Bahamas: The British Colonial Hotel & Office Complex and
the Margaritaville Beach Resort complex...
“This offer of security encompasses nearly all the total combined value of the three defendants. Given the imminent risk of insolvency without a stay, this security would make a stay here consistent with those granted in scores of cases nationwide.”
Mr Goodman said CCA “would agree” to also “perfect” its appeal by December 30, 2024, so the case could move forward speedily, and provide “transparency about its financial situation” through giving information to the court and Mr Izmirlian that includes the appraisal valuation of the two Bahamian resorts.
“Defendants brought this motion to maintain the status quo while this court reviews the trial court’s post-trial decision and judgment. The trial court piled error on error in awarding the real estate developer plaintiff $1.6bn in damages and pre-judgment interest against defendants, including one (CCA) that had no contractual relationship to or role in the construction project at issue,” Mr Goodman alleged.
“The trial court ignored swaths of unrebutted testimony and entire defense witnesses, mixed and matched contractual obligations without importing the attendant limitations
on liability, and misapplied the same bedrock damages principles that this court corrected the trial judge on in this same case at summary judgment less than a year ago.” He added: “Were this an ordinary case and an ordinary judgment, defendants would not need this court’s intervention to exercise their right to appeal without risking their ongoing businesses. They would post a bond and secure an automatic stay. But, because defendants are worth collectively a fraction of the judgment, they were unable to secure a bond despite diligent efforts.
“It is unsurprising, then, that if plaintiff is allowed to begin enforcement proceedings immediately, defendants will be forced into insolvency. Insolvency is not merely hypothetical, as plaintiff suggests. It is effectively certain, and it will inflict its irreparable harm by the time a full panel of this court decides defendants’ appeal.....
“Given defendants’ likelihood of success on appeal, imminent insolvency absent a stay, reasonable offer of security through CCA Bahamas’ pledge of its ownership interests in its subsidiaries, and commitment to perfect their appeal by December 30, 2024, defendants reiterate their request for a stay pending appeal.”
