The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Grand Bahama businesses yesterday said individuals, rather than companies, were the likely culprits abusing the Dorian-related Special Economic Recovery Zone (SERZ) privileges to evade due taxes.

James Carey, the Grand Bahama Chamber of Commerce’s president, speaking to Tribune Business after Customs officials revealed that VAT and duty-free goods brought into the island and Abaco were being shipped to New Providence, said: “That is very unfortunate. It is circumventing, and if it is not criminal then it should be criminal or border on being criminality.

“It’s not supposed to happen. The SERZ Order is for the islands of Grand Bahama and Abaco to help in the restoration and redevelopment from Hurricane Dorian. If there are people sending goods to New Providence and other places that is wrong, and unfortunately there seems to be a bad apple appearing everywhere as always. But the reports are suggesting that this is widespread.”

Mr Carey said he understood some persons had been caught and penalised for abusing Dorian tax breaks, and the Government was able to collect the necessary duties.

He added: “This really shouldn’t happen as this casts a shadow over how this thing works for Grand Bahama and Abaco. God forbid there’s another event here or elsewhere, and the same thing needs to happen. We’d hate to see the Government rethink providing such a facility because of some bad apples in the bunch who determined to profit from the goodwill and generosity of the system to get things back in order.”

There is a real concern that the Government may decide to scrap the SERZ zones due to these breaches, Mr Carey said he “wouldn’t be surprised if they are going to reconsider the SERZ because it is most unfortunate”.

“We can’t just let this happen,” he added. “As you know Grand Bahama, in particular, has had a special privilege on bonded goods in business since the coming into being of the Hawksbill Creek Agreement and, while I have not seen any evidence, I’m sure that over the many years persons may have imported things into Grand Bahama on the bond and they may have ended up elsewhere. But I have never see a report on any widespread activity in that regard.”

Suggesting individuals, not businesses, were responsible, Mr Carey said: “The Chamber can’t monitor all of the businesses in terms of ensuring they stay within the law with the SERZ Order. I think there’s probably a lot of individuals who benefit a bit more from the SERZ, probably not in volume but in terms of an accounting of people who are taking advantage of this, I think there are perhaps more individuals who are benefiting.”

James Rolle, Dolly Madison’s general manager, agreed with Mr Carey and said: “I’m not aware of any Grand Bahamian business doing that, but there may be individuals that are doing that.

“The whole purpose of the SERZ was for people to recover from the storm. That was the whole idea behind the SERZ programme. I don’t think there are substantive businesses in Grand Bahama that are using the SERZ order to send goods to Nassau.”