Daily Archives: November 1, 2013

BFP reader questions possible tax avoidance scheme by local business Harris Paints

Harris Paints Barbados

Contributed anonymously by BFP reader ‘Burning Gas Valve’

I just read the Barbados Free Press August 23, 2013 article headlined Barbados Inland Revenue fails to act on tax cheat information“.

The Inland Revenue should investigate Harris Paints who has laid off many Barbadians in recent years, “to cut costs”, but at the same time they use companies (Industrial Supplies Incorporated and Harris Paints International) registered in BVI and St. Lucia, respectively to siphon off the profits and avoid paying taxes, although the “management and control” resides in Wildey, Barbados.

This would be an easy case for the Barbados Inland Revenue to solve simply by doing a standard tax audit of Harris Paints Barbados and also at the Wildey Head Office. I will read Barbados Free Press to see if you can get the Inland Revenue to move on this case to get this company to pay its fair share of taxes.

Burning Gas Valve

Editor’s Note: Just remember folks… anonymous information isn’t to be trusted without some independent thinking and research. Take it with a grain of salt, and then let’s talk! Our readers are often able to substantiate or disprove stories. Let’s see what our readers come up with for this story.

Harris Paints operates throughout the Caribbean. From their website

The Harris Group of Companies, commonly known as Harris Paints, is one of the Caribbean’s leading manufacturers of architectural finishes, building products and industrial coatings. Continue reading

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Filed under Barbados, Crime & Law, Economy

Loveridge: Special tax breaks for new hotels harm existing businesses

Will tax concessions for new businesses finance predatory pricing against existing hotels?

Adrian Loveridge, small hotel owner.

Adrian Loveridge, small hotel owner.

If you have not already, I implore you to read, especially if you are involved in tourism or financing, what in my humble opinion is an excellent article entitled The La Source Saga’. The author, S. Brian Samuel, spent 20 years with the World Bank primarily working on the Caribbean Project Development Facility with the specific task of raising finance for regional businesses.

Brian honestly admits that La Source was one of his favourite projects and in fact on retirement he took up the post of Executive Director when it re-opened in February 2008 after the ravages of Hurricane Ivan.

Within three years of its original opening La Source financially broke-even and achieved a year round occupancy of between 72 and 78 per cent, prior to Ivan striking the island. Even with just 100 rooms, which then represented only 8 per cent of Grenada’s total room stock, it was providing a staggering 20 per cent of the entire hotel guests to the destination.

The article goes on to graphically detail the challenges that followed, leading up to a second closure, or as the writer describes it, ‘Death and Rebirth’.

Faced with mounting unemployment, declining revenue and a real risk of losing further airlift, the Government of Grenada had to do something and I understand that Sandals had already expressed an interest.

To seal the deal, the then Minister of Finance, Nazim Burke, gave them ‘something special’ and concessions granted included: Continue reading

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Filed under Barbados, Barbados Tourism, Economy