By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Web shop operators are “uncomfortable” that they have to make a full financial disclosure on their businesses during the transition to regulation despite having no guarantee they will obtain a licence to continue operating.
Attorney Wayne Munroe, who represents several webshop operators, also described the higher tax rates and fees to be paid by web shop operators in comparison to hotel casinos as a “bitter pill to swallow”, but one they were prepared to make to secure their future.
“The Government is taking a shrewd approach. Firstly, to operate during the transitional period, you have to make full and frank disclosure under oath. Then you have to pay all your back Business License under declaration,” Mr Munroe said.
“The Government will be collecting all this money, getting all this information and hasn’t committed to anyone doing it to getting a license. That is a matter we are uncomfortable with. We made representations about it but they clearly weren’t accepted.”
Tourism Minister Obie Wilchcombe, who has responsibility for gaming, recently said the number of web shop licenses that will be issued is to be determined after a financial audit of the various operators has been conducted.
Mr Wilchcombe told Parliament last week that there will be a fixed number of web shop operator licenses, as well as web shop premises licenses. Licenses will be granted under a detailed criteria that will be outlined in a tender process the Government is poised to launch.
This will contain minimum requirements for the licensing of web shops, and be used as the platform to manage the application and licensing process.
The Gaming Bill, which was tabled last Wednesday, proposes that the holder of a gaming house license be subject to either an 11 per cent tax rate on their revenue, or 25 per cent of earnings before interest, taxes, depreciation and amortisation (EITDA)are deducted, depending on which is higher.
Mr Munroe said: “The fees, when you do a straight line comparison, are higher than the fees for the hotels for the same thing. It doesn’t take a rocket scientist to figure out that the Government is trying to demonstrate to the rating agencies and the IMF that this is a new source of revenue.
“My clients take a very simple view. It is discriminatory, we are not too happy with it, but we are Bahamians. It’s in our interest that the economy of the Bahamas does well.”
Mr Munroe added: “My clients are looking at this as a sacrifice that they have to put up with, being taxed at a higher rate of tax than the casinos, and they are going to put up with it and swallow the bitter pill with a long-term view that this helps turn the economy around.
“We are encouraged because the minister responsible for gaming is making it clear that the tax scheme is not written in stone. I understand the Government is trying to extract the maximum amount of money and information, but that has to be balanced against the ability for people to make sensible hiring commitments because web shep operations will look completely different.”
The Government also plans to make the taxation of web shops retroactive to July 1, 2014.
Comments
The_Oracle 9 years, 7 months ago
More like scared for Bahamians to find out just how much money Web Shop bosses have been making, Illegally I might add. and how small the winnings are in comparison. Make Drug dealers look like chicken feed. What an Amazing Country!
Publius 9 years, 7 months ago
Boo-hoo, lawbreakers are upset about provisions in a Bill, a Bill that was drafted in an attempt to get them straight in the first place. Cry us a river. This country is so blindingly corrupt it is enough to make one lose hope.
asiseeit 9 years, 7 months ago
The "bitter pill" law abiding Bahamians have had to swallow for years is the fact these criminals have broken the law openly and the people that make the laws have done NOTHING about it. If we where to follow the web shop model you just need to overwhelm an area with your illegal activity and the government will "surrender" to your illicit activity. Now class lets say it together so we all understand what our leaders have taught us, THE BAHAMAS IS A CORRUPT COUNTRY!
Sickened 9 years, 7 months ago
“bitter pill to swallow”, but one they were prepared to make to secure their future? How ridiculous is this statement? I wouldn't be surprised if these current criminals don't pay a license fee at all. Who is government or the police force is going to enforce the law if they don't pay their tax or license fee? These criminals will continue to ignore the law and continue to pay the authorities off to leave them alone.
These guys don't care too much about licenses going forward, what they want is to get the 100's of millions of dirty money cleaned up; that is what is important to them. Flowers will open his commercial bank and run all other commercial banks out of business. This dirty money is going to make them even richer than before.
The only good that may come out of this is that CIBC and Scotiabank will scream foul when they have to completely shut down and then perhaps an international investigation will be called and the international authorities will determine that our government is and has been corrupt and put them on trial, find them guilty and put them in prison.
bismark 9 years, 7 months ago
shut up and pay the bill,all of a sudden now money is a problem?what did they expect from the PLP?sympathy?that party is full of gangsters,those webshop guys should know they aren't getting off that easy with those greedy politicians.
GrassRoot 9 years, 7 months ago
well they are afraid of black spots in their accounts, and they should. I suggest we do a little double accounting here and match the black spots with the white spots in the politicians bank accounts.
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