Category Archives: Canada

Weak Canadian dollar brings challenges for Barbados tourism industry

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Adrian Loveridge - tourism expert, hotel owner

Adrian Loveridge – tourism expert, hotel owner

It is already more than halfway through the year and this is a time perhaps that our tourism policy planners are focusing on what marketing strategies can be effectively put in place to build on the first quarter increase in visitor arrivals.

As always, it is almost impossible to accurately predict what is going to happen in our global marketplaces and how that could impact on numbers, average stay and spend.

Important issues include the fall in the value of the euro earlier this year and whether this will be further impacted with the eventual solution to the Greek crisis. What effect will the first Conservative British government budget since 1995 have on the disposable income of most Brits? And finally, there is increased speculation about an impending recession in Canada, just at a time we were experiencing improved arrivals and airlift.

Having lived in Canada for some time, I know there is a psychological threshold when the Canadian dollar falls below 80 cents compared to the United States dollar. Naturally, Canadians then start to question whether they are truly obtaining value for money at holiday destination choices. It becomes an imperative to clearly demonstrate that we can offer a competitive product by at least attempting to reinforce component parts of the tourism industry that are more affordable.

While we will never be able to compete with the mass tourism regional offerings like Mexico, Dominican Republic, Cuba and alike, Barbados still has a myriad of more affordable accommodation choices. Of course lodging is only part of the equation, so personally I think there is room for a re-DISCOVER-like promotion specifically aimed at the Canadian market that helps minimise the currency value differential, which include not just restaurants, but attractions, activities, car rental and shopping.   Continue reading

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Filed under Barbados, Barbados Tourism, Canada, Economy

Canadian Court upholds Revenue Canada – disallows “Barbados Structure”, penalizes Canadian company’s use of offshore Barbados subsidiary.

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 Marzen Artistic Aluminum Ltd. v. The Queen (2014 TCC 194)

I’m don’t know much about this kind of thing, but it doesn’t sound good for Barbados. According to our Google Alerts, the tax sector is abuzz with this latest Canadian ruling that runs 80 pages. (download the ruling here – PDF)

Comments from the cheap seats?

In a lengthy set of reasons, the Tax Court upheld all but a fraction of the CRA’s reassessment of the taxpayer, such reassessments having disallowed the deduction of approximately $7.1M of fees paid by the Canadian taxpayer to its Barbados subsidiary. The Court also upheld the imposition of a penalty under subsection 247(3) of the Act…

… from Dentons Tax Litigation blog: Marzen: Artistic Barbados tax plan defeated

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Filed under Barbados, Canada, Offshore Investments

Canada puts the tax squeeze on Barbados offshore corporations. Barbados puts on Happy Face!

Barbados Smiles Happy Face

Barbados puts on a happy face and buries in the press release that offshore secrecy between Bim and Canada is a thing of the past…

The Protocol amending the Agreement between Canada and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital is now in effect. It entered into force on 17 December 17, 2013.

“On November 8, 2011, Canada and Barbados signed a Protocol to amend the 1980 DTA. This Protocol, among other things, now allows entities operating in the international financial services sector to benefit from a number of provisions in the Treaty, including the provisions on residency. In addition, such entities will now be covered under the new comprehensive exchange of information provisions which now meet the OECD standard.

Barbados values the mutually beneficial and long standing relationship with Canada and welcomes this development as it will further concretise Barbados’ principles of transparency and substance. Through our network of tax treaties, it will further solidify Barbados’ commitment to international best practices on the exchange of information.

Read the full story: Barbados Prime Minister: Protocol Takes Effect

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Filed under Barbados, Canada, Offshore Investments

Canada’s Sault College receives $440,000 to assist Samuel Jackman Prescod Polytechnic

Keep that foreign money flowing folks… We need it!

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by passin thru

Times are tough on the rock and a lousy $440,000 Canadian dollars doesn’t sound like it would buy much of anything ’bout this place after VAT is considered too.

But, beggars can’t be choosers and all that.

What’s going to happen with all this money? Well, first off it’s not coming right away. Sault College “will receive” the money from the Canadian government over the next two years as the joint programme with Prescod Poly to “collaboratively develop training over the next two years to support a growing renewable energy industry in Barbados.”

Must be something I’m missing about a “growing renewable energy industry” because the last time I looked it was a solar water heaters business was destroyed with a joint venture with Nigeria. (Like that would work out!)

After Owen Arthur threw away $2.4 million dollars of taxpayer money, Aqua Sol went broke and the Trinis bought it up and changed the name to Solaris Energy Limited. It looks like the new manufacturing facility in St. Phillip is always busy, and let’s hope it stays that way – but that is just one company. Pray this new seed money from Canada actually sprouts something and doesn’t just drip away like usual.

But hey, we’ll take the money and do the training or whatever. Just send the money.

What? No plan yet? Hey… gimmie the money and we’ll come up with a plan by sundown!

The two Institutes will work together over the next few months on developing a detailed project plan. Implementation will begin in April 2014.

“We will be planning and implementing key activities such as labour market analysis, curriculum development, teacher training, facilities and equipment enhancements as well as student and faculty exchange between April 2014, and March 2016,” says Ted Newbery, Chair of Continuing Education at Sault College.

Read the whole story: Sault College joins in Bajan school program

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Filed under Barbados, Business, Canada

Dr. Victor Gooding: A Barbadian Living in Canada

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Barbadian Scientist living in Canada to deliver 2013 Sir Winston Scott Memorial Lecture

Frank Collymore Hall, Monday November 25, 2013 8pm

The Central Bank of Barbados today announced that a Barbadian whose pioneering work in telecommunications created a new narrative for Canadians of African descent will deliver the 2013 Sir Winston Scott Memorial Lecture.

Dr. Victor Gooding, Barbadian Olympian and Senior Satellite Systems Scientist at Telesat Canada, will speak on the topic “View from 45 years North: A Barbadian Living in Canada” at the Frank Collymore Hall on Monday, November 25 at 8:00 p.m.

“The unique perspectives of Barbadians abroad represent valuable and important contributions to the dialogue on the country’s social and economic development efforts”, Dr. Gooding commented days before his presentation.

This telecommunications specialist said his audience can expect a presentation on a series of issues ranging from science to education to the international economic crisis. Continue reading

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Filed under Barbados, Canada, Science

Canadian Government Broadcaster hires private investigator to expose Barbados tax haven loopholes

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What don’t these Canadian journalism types get about Barbados?

The answer is simple: The Canadian laws are not being broken, they are being used as they were intended.

It’s the same with the American IRS regulations. If the Americans, Brits and Canadians don’t want their citizens to transfer income offshore, then those governments should make it illegal and rescind the tax laws that make these schemes possible. Until that time, places like Barbados, the Cayman Islands and Bermuda will continue to welcome Canadian, American and Brit business people who can’t survive with the 30, 40 and 50 percent tax rates of their homelands!

Tax avoidance: Canada-Barbados tax deal loopholes revealed

An exclusive CBC News hidden-camera investigation into the world of offshore banking found professionals in Canada and Barbados willing to help hide business profits in Barbados by exploiting loopholes in a long-standing tax saving arrangement between the two countries.

“My advice to [the Canada Revenue Agency] would be, every time you see a Barbados [company] in the structure, investigate it,” said an individual who used to run one of Canada’s largest offshore companies and also spent time in prison.

For decades, Canadian companies have flocked to Barbados with their cash in order to legally avoid paying Canadian taxes. If a Canadian company wants to expand its business outside of Canada, it can create a subsidiary in Barbados where it can park its international profits. This way, it legally doesn’t have to pay Canadian taxes on those profits.

… read the rest of the article at CBCnews Canada: Tax avoidance: Canada-Barbados tax deal loopholes revealed

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Filed under Barbados, Business & Banking, Canada, Consumer Issues

Canadian Parliamentary report targets Barbados and other offshore banking and corporate centres

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I have a question for our glorious leaders of the DLP and BLP…

Tourism is dying and our offshore banking sector is under serious attack. What is this island going to be doing to earn foreign revenues in 10 years time? Folks like Dr. Duguid and Owen Arthur won’t care because they are rich enough to bail out, but what will our children do to earn a living?

“Canadian banks and other financial institutions should be required to find out the beneficial owners of corporations or trusts that are transferring money overseas, according to recommendations in a new report on tax evasion by Parliament’s finance committee.

The all-party finance committee reported Wednesday on the results of a lengthy review of tax havens, but the study immediately drew criticism from NDP and Liberal members who said its 11 recommendations are too vague and will do little to halt the tide of money flowing into offshore tax havens.”

… from the Globe and Mail article: Banks urged to find out who is sending money abroad

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Filed under Barbados, Canada, Offshore Investments