Tax collection problematic
(CNS): Collection of the premier's proposed tax on expatriate worker permit holders will be difficult and costly to collect, according to local experts as well as members of the opposition. With no culture of direct taxation, few employers, especially small businesses, have systems in place that will allow government to easily collect this 10% cut of workers' pay. Local finance experts are already issuing warnings to government that lawful tax avoidance system will be in place almost as quickly as government can come up with a system to collect the money it hopes will plug its budget gap.
Moreover, opposition politicians are warning that the cost of collection and enforcement will outweigh the hoped for cash that the tax proposes to raise.
With a significant number of tax experts on island, as well as international companies with offices in other tax free jurisdictions, experts already say that employees in the offshore sector, which offers the greatest pool of high paid work-permit holders and potential revenue to government coffers, will move quickly to adapt to any system government puts in place to avoid paying the tax.
Government will be stretched and need to employ a new army of civil servants to analyse and assess the people who should be paying, how the tax should be collected and how it can enforce payment.
Speaking in the wake of the news that Premier McKeeva Bush intends to introduce a direct taxation on the earnings of work-permit holders, which he called a "community enhancement fee", the opposition leader warned that employers will become very creative about how they pay their staff.
“Government will need to be very careful depending on significant revenue from this form of income tax,” Alden McLaughlin said. “Employees may become very creative about how they pay people and are likely to start paying them in other countries where possible. We don't have a culture of income tax so most employers won't have any systems in place to deal with this. Government will need to create a whole new system and hire more civil servants to collect this tax.”
These concerns were also raised by the independent member for North Side, Ezzard Miller, who said that he did not believe government had done any analysis over the “totally ill-conceived policy” or given any consideration to how this tax would be applied and collected and how it would enforce compliance. With no existing agency, government would have a major task ahead of it to do a full screening of who should be paying and how much, which would be a costly exercise. “We will need to spend a million to collect this,” Miller added.
In addition, government has a poor track record of collecting taxes outside of the offshore sector where there is not an agency responsible for enforcement, such as with work permit taxes.
Government abandoned school fees and garbage fees in recent years because of its inability to collect the cash. Making employers compliant when it comes to the law on health insurance and pensions had been beyond the grasp of successive governments, and the HSA continues to lament the failure of people to pay their hospital bills.
Despite announcing his intention to impose this new 10% tax on foreign workers who are earning more than $20,000 per year, Bush has given no indication as to how this tax would be assessed or collected, by which government agency and how government would enforce compliance.
The premier said the new tax was the lesser of several evils when it comes to taxation, which he said the UK were forcing him to introduce regardless of his efforts to cut expenditure.
However, a statement released by the governor’s office on Thursday afternoon suggested that the budget in which this tax proposal is supposedly contained is far from a fait accompli as the UK’s economic expert who is advising the Cayman government on the budget is not yet in receipt of the government's latest financial plan.
Category: Politics
Any form of tax that takes more civil service expediture to collect and audit makes no sense. No new form of tax should be considered until all attempts to reduce expenditure have been exhausted.
So what let the news show up that Government is finally helping its own people and putting expats in their place!
good job premier,
GOOD JOB UK!!!!!
Taxes on expats. The thin end of the wedge. Caymanians will be next (probably paper Caymanians first) but the rest will follow. Then taxes brought in on investments and companies.
Soon come, the men will be back to sea and the women back to making rope.
Shirtsleeves to shirtsleeves in three generations.
Well done.
WHere are the civil service voices on this matter?
Esp the Pension Office – Mario – are you leaving us already, after having to give up your 'Premier' car plates for a govt job?
Read between the lines.
No pension for expats means no future for expats.
MacCheese will give expats a 10 year term limit with the possibility
of applying for residency……………and just reject everyone who applies.
He is basically saying you do not need a pension in Cayman because
you will not be retiring in Cayman.
XXXXXX
Alden?! Complaining about the cost of taxation?! He should have thought about that when he and Kurt blew more than 81 million dollars and more on schools and roads. These men say one thing and then turn and say the opposite, because they know they can get everyone on their side. I don't trust Alden. Maybe Ezzard, but not some party figure that help got us into this mess.
Better to blow funds on schools and roads rather than Nation Building vote buying, hurricane Hilton, paving private parking lots, flying first class, staying at the Mandarin Oriental, lawsuit settlements for breaking agreements, Cohen deal ……………………..
TO THOSE OPPOSING THE TAX: BERMUDA HAS 14% ON PAYROLL TAX AND THEY ARE THRIVING :o) I BET if it was us being taxed you honestly believe these expats here would be carrying on like how they are??????? HELLO!
Rubbish. Bermuda has been suffering. Looking at the Bermuda Gazette comments on the proposed new tax I thought that this comment was particularly insightful. There is more than one competitor:
Payroll taxes in Bermuda and Cayman will give the US domiciles more positive advantages to be discussed at the big Vermont Captive Insurance Association meeting. Domiciles of Tenn Montana Hawaii Connecticut Colorado NJ Florida Kentucky Washington DC New York Vermont Arizona Nevada will certainly pick on these issues as captive insurance companies continue to grow in number with insurance costs rising.
Andy Barile CPCU MBA
http://www.abarileconsult.com
Bermuda is not thriving.
Don't compare Bermuda to Cayman, it is a comparison between night and day.. Bermuda is light years ahead of Cayman, while Cayman is still stumbling in the dark.
They are ahead because they taxed expats!
In their self-important little minds. The funny thing is your newspapers are always comparing Bermuda with Cayman while we in Cayman largely ignore Bermuda.
CNS: "The premier said the new tax was the lesser of several evils when it comes to taxation, which he said the UK were forcing him to introduce regardless of his efforts to cut expenditure." Well I would think that if every time you come to them with a budget showing cuts to expenditures like how Ezzard is recommends, and they refuse it, that to me would be pressuring. It is almost like the Premier is fed up with them. The relationship between him and the UK has grown sour since from last year. I read Ezzards letter and I agree when he says that McKeeva should be replaced by Roulston, because I personally think he doesnt have the patience enough to deal with our finances. It is alot of work too. On the other hand, I notice the silence from the Governor and FCO Minister. They do appear lamblike, but don't let that fool. They are the real masterminds behind what is happening now.
I call bull$hit! Political grandstanding at it’s finest!
14.52% tax not 10% tax!!!!!!!!!!!!!!!!!!!!!!!
If you do the math, you'll find this is actually a 14.52% tax. Under the current proposal, the employer is no longer required to pay the 5% pension contribution. At their choice, the employer can direct that 5% to the employees tax bill. The employee will pay the balance of the tax bill which is actually 9.52%. In total, 14.52% of the employee's salary is sent to the governement.
At the end of the day the employee will no longer have the 5% pension contribution in the bank and will have paid 9.52% of his salary to the governement. I read this in the Royal Gazette last night. Saying this is a 10% tax is wrong.
http://www.royalgazette.com/article/20120727/BUSINESS02/707279977
At this price, I'd be far better off moving back to Canada. I prepared my Canadian tax return and using dedutions avaialble to all Canadians, my tax rate in British Columbia is 21%. However, if you offset this agianst the 14.52% the differntial tax rate is 6.48%. This 6.48% premium is quickly reduced and surpassed when you adjust for my CUC bill not to mention all the other cost of living difference between here and Canada.
So vey sorry to see you go back to Canada but with all your deductions any low tax rate in BC you will do just fine. By the way I saw it on the news where Canada is now richer than the USA so maybe more Caymanians should migrate to Canada, they have excellent free health care there and it a wonderful place to live.
The exodus of persons & capital from the Bahamas 30 years ago started with a single speech by the then-Prime Minister – that was all it took. Ask any Bahamian how badly their economy was affected for at least the next 20 years – their one saving grace was that their currency was at par to the US dollar and they managed to keep it that way with strict exchange control laws. Hey, all you Miami-shopping lovers, what are you going to do when you can't buy US dollars with you CI dollars to pay your credit card bills?
In Jamaica, the same anti-foreigner and socialist fromula of Prime Minister Michael Manley caused their currency to collapse from J$1 = US$1.20 (same as the CI$) to the current J$1 – US$0.011 – yes, that is correct one Jamaican dollar is worth about one US cent.
So all you bone-headed & selfish employees of the Cayman Government who refuse to take less pay now and the hell with the economy, what are you going to do when your CI$50,000 -$100,000 salary is no longer worth US$60,000 – $120,000 but US$500 – $1000? You think it can't happen? It most certainly can and in any country that suffers drastic devaluation it is the Government workers whose salary remains at the same amount in local currency year after year thereafter.
The Government doesn't have an income problem, it has an expenditure problem. Keep alienating the productive sector of the economy and pretty soon you will have an income & expenditure problem.
I am disgusted, discouraged and disheartened.
Read history, know abou what you are trying to write/speak about. What happened in Bahamas is a mirror of what is happening here in Cayman today. Fortunately for the Bahamas they had an educated leader that was not afraid to go against the status quo for the benefit of his country and people. It would do you good to read the vision of Sir Lynden Pindling edited by Patricia Beardsley Roker and you will see what is now happening in Cayman is nothing new to the Bahamas. I pray that the outcome will be different. The Bahams playbook is being used against Caymanians by some of the very people that fleed from the Bahamas here. Bahamas is indeed lucky to have had a leader like Sir Lynden Pindling when they did; fortunately for Bahamas they had an educated strong leader who had a vision of more than 10 years for his people. A man that walked with Kings and Queens, noble men and women the world over but remained true to himself he would not forget his roots andpeople or from whence he came. Bahamas is an independent country and most Bahamaians still live in Bahamas and all things considered Bahamas is still a wonderful place they still have a thriving financial industry and many expats still live and work there, can't be all that bad. Now sweet Jamaica is entirely different they sucked the sour seed of corruption, division and political tribalism that set their teeth on edge for another 300 years that is when their redemption will come. Thank God that Cayman is small and when the day comes when it won't be "I am Caymanian" rather "who ya sa ya Mama is?" that's when we will know who's Caymanian or not. You don't worry Caymanians are no longer willing to throw themselves under the bus to save others. We are all going to sing near my God to thee nearer to thee from the bow of our ship Cayman and when all others run we will go down with the good ship Cayman but this is one time that we will not throw our Captain and people overboard to save others. Not this time no way Jose.
Yes Bahamas may have suffered but today we Bahamians are in fully control of our $#!%.One saving grace, give it rest mann. People like you clearly attach too much importance to yourselves.
I am not a Caymanian, but I just came back from the Bahamas on a visit, for the firsttime visiting Nassau, and trust me I was not happy with what I saw, I expected more. The only thang Bahabas have that is outstanding and that is the Big Gambling Casino. There is no compasisson with Cayman, we are far pretier, nicer people, cleaner and much more advanced. Some of those complaining can go there if they like.
According to BBC World News, "there is" between Swiss Banks and The Cayman Island Banks, somewhere in the neighborhood of $21,000,000,000.00 "thats twenty one trillion dollars" or to put it another way, "TWENTY ONE MILLION MILLION DOLLARS" that is using us to avoid taxation, and let us say that Cayman is handling one half of that amount, say [$10.5 Trillion Dollars] So let us use a little logic here and assume that the local banks that are handling this money are getting a small fee for their services, and then there are "The Law Firms" which are also getting their piece of the pie for whatever they do for the clients. NOW!! Wouldn't it be logical that The Government of the Cayman Islands should be getting a small piece of this Pie as well? Of Course they should!
So let's think about this! Would it be asking too much if "Our Government" levied what I will call a "Transfer Accommodation Fee" [on an annual basis] of say 0.5 of a percentage point. Based on the above this would amount to some $52.5 million dollars we would collect annually. These fees are then placed in an interest baring fixed deposit account that can not to be touched for any reason other than those projects which have been approved by the "whole house" and/or for National Emergencies.
"WE WOULD NEVER, EVER, HAVE TO BORROW MONEY AGAIN"
The Cayman Islands with 21 Trillion dollars, on paper yes but never in a million years would that actual amount of money sit parked in a bank here in Cayman. A small fraction of that kind of actual money is here on island. The government have to tax what they can get their hands on thus income, property or VAT.
Tell me of the Trillions of dollars, are we getting any of it? I have lived here all my life and I haven't got a bit of that money. So does it really matter to me? No!
There isn't anywhere near as much money in Cayman banks as your post suggests, but in any event money is the ultimate liquid asset – if you try to put a fee on it being in Cayman, it will simply flow to another bank in another jurisdiction at the speed of a wire transfer. "Capital goes where it's welcome and stays where it's well treated." –Walter B. Wriston. Continually adding to the cost of doing business in or through the Cayman Islands will simply push that business elsewhere, as you have already seen with the outflow of money and business from Cayman and the closing of the local businesses that relied upon and serviced that inbound business. That treatment of international business is ill-conceived and is akin to a vampire looking for a way to suck out all the rest of the blood from its last available victim as quickly as possible – that makes for a good meal, but it starves to death immediately thereafter.
That number is grossly incorrect and plain out wrong. 90% of these big numbers come from onshore deposits by cayman branches. It's technical, but sufficed to say the money is not here. It just makes news for a POPCORN HEADLINE CULTURE.
For 3 years they have been travelling the world and partying like there is no tomorrow.
Now they are running around like the older generations used to say "like a chicken with its head cut off'…
And here we are – the victims trying to figure out what they should do.
If this was some years back and Mac was in the opposition he would be marching and screaming at the topof his voice for the government to "RESIGN"
I just figured this whole think out Mac is a smart man. I read here that a majority of you expats are going to leave the island; well this means you will have to take a flight. Say 10,000 of you leave that’s $790,000 in airline taxes. Now believe it or not all expats are replaceable. Employers will hire new people that will be aware of this 10% tax; they too will have to fly, so there’s another 790k. Now the employers will have to get work permits, say average $2250per person well that’s $22,500,000. YOU SEE MAC’S A SMART PERSON. LMAO!!!!
On a serious note, Mac appears to have no idea what he is doing here, are you crazy Mac you can’t start taxing anyone’s salaries. You have a chance to make a real difference in your last term, yes last term, you are not getting back in, so why not do the right thing, and a really hate to say this but listen to Mr. Miller cut the CS.
We have Government land right now that is on lease, we you know what you’re selling are road to Dart, so why not sell these properties too, Safehaven sell it for 30mil, Ritz 30mil, andwhile you are at it sell the Governor’s house ask 30mil (I’m sure someone will buy it). So where are we at now? 90mil just on selling these properties? Hey I’d be calling Dart up tomorrow (lol). Now go to the guy who owns the old Hyatt, I thought you imposed a fine of him of 25k per day some 2yrs ago. Well that’s approx. 20 mil. SH…. I just made the 100mil you needed.
Now after doing the above, cut CS make them pay for their dependent’s health coverage(Mac says he’s going to), collect fees that you are currently not collecting, sell off some of these Gov Authorities, Cayman Airways, Turtle Farm, Water Company, Dump, what you could also do is set up a Gov bond say for 20yrs, but his time you sell to Caymanians at a rate of 4%. Then let’s do a lottery, scratch cards, and a casino. Oh forgot, start charging people to send their kids to Gov schools
I know my ideas aren’t the smartest but let’s work together to see what we can come up with, WE DO NOT NEED ANY FORM OF INCOME TAX. If this goes through guess what, we Caymanians will start getting taxed and once it starts all it can do is go up.
Ah, in previous articles I read someone saying a person was complaining that Mac is going to make CS pay health for dependents and they will not be able to afford to pay, but they make a salary of 60k per year. Well to this person and other CS with great salaries give up your 40-70k SUV or Car, buy a second hand one, live in your means. Some of my staff make this and don’t drive these fancy cars, they do however own their homes.
I’m sure I’m going to get thumbs down now… mind you my 1st paragraph is pretty fun hey?lol
Cayman will probably survive this silliness.
Many of the professional expats that Cayman needs are here because of the life-style, not the bottom line dollars.
10% tax will cause some to leave. That is true. Some will stay, that is also true.
It is also true that other professional expats will come because of the diving and life style. Caymanians, you truly live in a paradise and many of you just don't realize it, you take it all for granted.
Cayman will muddle through this tempest-in-a-tea-pot that is stirred by the bunch of corrupt and incompetant politicians that rule this very small town. The expats find them infinitely entertaining; the stooges supply much humour over drinks at the posh Caymanian expat bars. McKeeva is a laughing stock in those circles.
Caymanians, don't worry you will survive. However, your national pride will be deeply hurt if you continue to vote for and support the current generation of politicians (There might be one or two exceptions, but they are brow beaten).
I feel a lot of empathy for the young, competant, hard working, well educated, well trained, ethical, and very wonderful Caymanians that I know. I just wish that they had the courage to step up to plate at take on McKeeva and his stooges, It is too bad that McKeeva and his stooges have made the political environment in Cayman so horribly toxic. The PPM are also part of the problem.
Good luck, I wish you all well.
Kneel, pray, and hope for the best.
Probably survive?
Professional expats here for the lifestyle?
Expats laughing and joking at politicians over drinks?
Kneel, pray and hope for the best?
1. Thanks for the glass half empty support.
2. I'm going with money – most expats are here for the TAX FREE money they earn. And they will leave if/when that is taken away. I sure would.
3. Those people must be bored and not out there enjoying the Cayman lifestyle. But hey, at least they are partaking in Cayman's national pastime while supporting the local economy.
4. Kneel – Okay, you must be Catholic – you really could have left out kneel. It's kind of creepy.
Peace to you.
1. Sell Cayman Airways.
2. Cut the pay packet for Caymanian civil servants who are makeing over $100,00, especially the MLAs.
3.Sell or close Boswains Beach.
4. Close the Department of Tourism. The private sector can do a great job of selling our tourism product all on its own. They are motivated by profit, not stooge phoney-baloney jobs.
Ooooops!!!! I forgot, corruption is the elephant in the room. No one wants to deal with it.
"1. Sell Cayman Airways".- We need Cayman Airways
"2. Cut the pay packet for Caymanian civil servants who are makeing over $100,00, especially the MLAs".- That I agree with.
3."Sell or close Boswains Beach."- I think we should keep that as well.
4. "Close the Department of Tourism. The private sector can do a great job of selling our tourism product all on its own. They are motivated by profit, not stooge phoney-baloney jobs." –
First of all, the private sector expects government to market for them. Second of all, DOT is more than marketing.
"Need Cayman Airways?"
Why?
I would like to add 3 items to your list.
1. Sell Cayman Airways
2. Sell Cayman Airways
3. Sell Cayman Airways
After the next election we could perhaps find a new revenue source by contracting out the financial expertise of McKeeva to other jurisdictions for a reasonable rate.
Bermuda has exactly 14% so all you talking foolishness about Bermuda check your facts. The Gov't got it right this time its either them or us and if it was us being tax you honestly believe they would be carrying on like how they are. Its about the money Cayman and some expect Caymanians to carry the burden they have help put on our infrastructure and when they can just get up and leave us with the debt. How come their is a flurry of ideas and suggestions all of sudden but before they just sat there indifferent to most our problems. As for those trying to assimilate with others ,you will learn what many others had to learn the hard way. So run along their and march till your little hearts content, but when the FCO says everybody should pay see if you will be singing the same tune then. When you start to talking about human rights now what about our indigenous rights as Caymanians being drown out and stifled by some who have come here to work and are given preferential treatment and jobs and are paid more money than some of our own people who are more qualified for the same jobs. No one likes the implications of what is happening here but many need to stop being hypocrites of convenience.
You Sir or Madame, you invited us here.
Not only are you a convenient hypocrite, you are convenient with the facts. Bermuda has a payroll tax, yes, but employees only pay a small part of it (about 5.24 per cent) and certain industries (retail and hospitality) have no payroll tax at all. In addition, for the industries that do have to pay payroll tax, all residents – not just expats – pay it. So before you start admonishing people to check their facts, please check you facts.
Inconvenient truth, you too must get your facts straight go to http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2012/dttl_tax_highlight_2012_Bermuda.pdf don't muddle the waters let all the people read and understand the truth about the tax issues in Bermuda and elsewhere. Remember everyone who is reading the comments on CNS can also get the fact they need from the web.
So someone with an 8 year education in their field, and 10+ years experience is less qualified than a Caymanian drop out with 2 years experience as a clerk? I don't see it here, I see companys hiring the best person for the job, which is someimtes a Caymanianian, and sometimes an expat. Let's face it, when you get to 'the pros' or management, your work permit is $15,000 KYD per year, never mind the cost to relocate you in the first place. Any employer than picks an expat over a Caymanian with the same qualifications won't be in business too long, as they don't understand business. This topic has been beat to death about 'qualified Caymanians' being passed over for expats with the same or less skills, and who are then paid more. Come on people, that just isn't happening here, most companies would prefer the Caymanian.
If you're really telling me Caymanians with the same or higher qualifications are being passed over for less expereinced and more-expensive expat workers, then let's face it – there is obvioulsy something wrong with the Caymanian worker (why else would an employer pay more for less?).
I totally agree with you. And to all the people who keep saying that expats are not chosen over Caymanians are lying because I am experiencing it myself, having been in the offshore financial industry for years and years. I have never had a bad report by any employer I have worked with and if I do say so myself am very good at what I do but having been in a recent accident, when I returned to work, there was an expat who had been hired to be team leader, an expat who had never worked in an office in her life or knows nothing about the financial industry, who came right out of school, tell me why she was given the role of team leader over two Caymanians who have the knowledge and capability of taking on that role, its because I work for expats and they look out for each other or they know her parents well. Then they hired someone else to do filing etc who also never worked in an office in her life. Could that job not be given to a young Caymanian. So give me a damn break, there is a whole lot of discrimination against Caymanians and it has been going on for too long.
I understand that PPM and the Independent member are discussing whether or not to suggest as an alternative to the payroll tax an increase in import duty..This seems like an excellent idea since there already exists an agency to collect these duties and this would allow changes to take effect immediately.. Should Govt continue with the payroll tax idea it will take months to implement, as a whole new Department will need to be created; laws will have to be drafted and passed ;and an education campaign launched explaining to everyone exactly what is required. e.g will this be based solely on salary/wages or will allowances be included.Once this is known we will find that schemes/plans will be put in place to legally avoid paying this, such as having a part of ones salary paid as an allowance if allowances are excluded.(In he same way that Americans ,for example use the Cayman Islands to legally ,and sometimes illegally,avoid paying certain US taxes) Adjusting import duty would also allow for more time to get feedback on other suggestions to improve or enhance revenue. Once new revenue streams are identified and implemented duty could be rolled back with minimum disruption as it will not be necessary to close any Department or lay off any staff as would be the case if a new tax collection agency had been created for the payroll tax . Mr Alden and Mr Ezzard ,please don't be too slow to put this out there ,it is an excellent idea.It certainly is less disruptive and divisive than this "community enhancement Fee.As soon as the decision has been made to scrap this payroll tax we must start a News campaign to lessen the damage that the announcement of this payroll tax has done to our image and reputation as a tax free destination.
McKeeva… The Captain of the S. S. Cayman Fitzgerald! The gales of November come early.
I'm willing to bet the proverbial 'dollars-to-doughnuts' that there have been NO credible, reliable studies done to date to find our what it will cost to collect and enforce this monumentally stupid idea. I'll also bet the same amount that it will be more than will be Government's income and will take YEARS to set up properly. Just look at the IRS – both in the UK and the US – they've been at it for years and STILL haven't got it right!
Give it up, Mad Mac! Just another of your absurd, illconcieved schemes!
"Imagine there's no countries
It isn't hard to do
Nothing to kill or die for
And no religion too
Imagine all the people
Living life in peace… "
Not the Beatles, John Lennon!
Argument of the Day: "IT IS ALL THE PREMIER THAT IS IMPOSING THE TAX….. not the innocent good little uk foreign and commonwealth service"
Mac would have a much easier time selling the expat income tax if he would only rename it to something like a "Work Permit Fee Refund Adjustment" or an "Import Duty Refund Adjustment". This sort of thinking worked well for Lisa Simpson when she was President of the United State and needed to raise taxes.
Unfortunately, Mac likes to play "kick the expat" when an election year is looming. Come to think about it, so does the PPM.
I seem to remember Mac floating ideas about cutting the civil service wages by 20%, then 9%, then5% then finally he sold it as the rollback of the 3.2% cost of living adjustment. It will be interesting to see how much back-pedaling that Mac will do with this issue and where we will end up six months from now.
"May you live in interesting times". — Ancient Chinese curse.
Cayman we caused this on ourselves. We kept voting back in UDP, PPM, UDP, PPM, and then UDP… when are we going to learn to put in politicians that stand for people only and not party interest. These parties spent, borrowed, spent, and borrowed and put their hat up high like there was no tomorrow. This is a lesson for all of us. The Premier has to follow though with the UK orders to tax. That is how we are here
Listening to the idiot on Radio Cayman, notably McKeeva just said he will not impose the payroll tax on Caymanians at this time. AT THIS TIME – get it, it means he WILL impose it on Caymanians later.
Any Caymanian that supports this tax is an utter fool and is complicit in the destruction of the Cayman Islands economy. There is no doubt whatsoever that the payroll tax will be catastrophic. Seems like there is a procession of idiots praising Bush.
He is not going to impose tax on anyone AT THIS TIME. He doesn't have the ability or power.
The UK is not going to allow "some" of the population to be taxed.
But when it DOES happen, partly in thanks to HIS suggestion – ALL WILL BE TAXED.
Yeah, LOL! I heard the procession too. I loved the questions on approved gambling, also the guy quoting the Fresh Prince rap. It was like a late night call-in comedy show
Play it again Dwayne!
I am happy that the Cayman Islands government yielded to our demands. I commend the Premier for making the right decision in terms of the best tax revenue for these beautiful islands. This is a start and I am sure that the comrades in the FCO will accept this budget.
U R Funny
Dear s,
You say the govenment yielded to your demands? What were your demands? You must have the Premier in your hip pocket. You mentioned the comrades in the FCO. Are you saying they are communists?
What I don't understand is how the Premier can just say there's going to be a new tax. Doesn't something like a tax have to be decided by someone other than the Premier alone? Is "Premier" a synonym for "Dictator" or "King"?
P.S. I'm glad you're happy because I'm sure not!
It surely can't be that ahrd to figure out where to grow revenues.
Unless of course you allow Dart and Shetty to have millions in duty consessions and 50% of the room tax.
Make them pay their fair share and you have to take a lot less form hard working people.
Ya, Good idea………………………………………..
Have the pension system collect millions of dollars in "community development fees"
ie. TAXES, and have them forward the funds to the government coffers to be wasted.
I think the police are still looking for a rogue pension fund manager who obsconded
with a couple of hundred thousand dollars last year………………..this island is laughable.
THIRD WORLD MAN…………AND YOU ARE PROVING IT DAILY ;-{0
GO PICK SOME COCONUTS BOBO……………………………………………
PATTIE MAN FOR PREMIER !!!!!!!!!!!
News is starting to show up in the world press.
http://www.forbes.com/sites/walterpavlo/2012/07/26/you-know-its-bad-when-the-cayman-islands-calls-for-income-taxes/
But to take a look at what happens when longer term consequences are ignored. I have noticed that with the professional expats that I have Talked about this with they fall into two general categories.
Many don’t mind paying the tax if they felt it would actually do something good rather than be squandered or handed off to someone who really doesn’t need or deserve it. These tend to be longer term residents who have either built a life here, or somehow made it past the rollover.
The other group tends to be those that came after the rollover. Generally younger with less experience and integration with Cayman in general. I will guess that because their experience with Cayman has been different. This is the group that Has a much more negative reaction. Mostly they weigh out the dollars and cents of remaining here, and in many cases will find better opportunities elsewhere. In their comments they focus on the discriminatory tax aspects.
The point. Governmental policy, and the politics of division, may be hurting more in the long term than we may realize. I was sad to see many friends leave by being rolled over and then not knowing any of the strangers who replaced them. Doing this now, in such a short sighted manner isn’t going to make it any better.
And to all my Caymanian bredren. Shame on you if you have your hand in the cookie jar and now want to come back for seconds on the back of someone else. Pay your share and learn to have some character like our people used to have.
The politics of division seem to work well when an election is coming up.
Once a man is turned into a well fed pet he will never be happy to be kicked outside again. Cayman your pets are crying to be fed. And there is no more money for food. What to do,
Steal it from some one that has it. It is the Caymanian Christian thing to do.
People are crying why TAX when you can CUT more. Tell me, in any country, would the government want to weaken itself when there are more expats in the country than citizens. I agree with MB on this one.
Dear anonymous 13:59,
You are an idiot!
The best way for Expats to protest against this unfair tax is to boycott Cayman Airways…That's where a lot of the tax collected will end up anyway.
Also you are not hurting any businesses part owned by Expats and of course there are other airlines to use so you can still make that trip and buy all your luxury items overseas rather than on island at inflated prices.
Protest the community enhancement fee all you want, but at the end of the day you will pay one way or another, plain and simple. You lot want thecake and eat it too. The free lunch in this country is over. Thank you Mr. Premier!
Folks like you Fri, 07/27/2012 – 13:39, are exactly who this tax should apply to based on your remarks and obvious attitude towards my island and its people. Whilst I do not support the tax on expatriates it would be good to single out those like you to apply it to.
I am an expat.
I fly American Airlines so that I get points and so that I can can easily get connections.
It is not a political statement. It is just more convenient.
I have absolutely no problem flying Cayman Airways to the places it flies to directly. But I won't make my trip unnecessarily difficult or more expensive to fly Cayman Airways when I'm making connections.
Donkey, you will have to stop flying all together, all the airlines have to pay the same tax. so guess what you're stuck on the rock having to pay 10% of you salary. LOL
Hush if you don’t have anything positive to contribute.
13:39 I wish you all will do that, then tell mewhat will stop us encouraging the Premier to tax them 20 percent instead of 10 %. Are you trying to start a war? Mind you dont win this battle.
I guess the UK Ax-man has McKeeva's neck on the block. Time to fight!
Where do I pick-up a job application for Cayman's version of the American IRS?
I want to be a civil servant – a position that beats the hell out of any union that I have ever read or heard about.
And to think – there aren't any dues! Membership is free – all you have to be is an anchor that will help weigh the island down.
Just to clear things up – its's not the fault of those in civil servant positions that they get what they get and haven't contributed to their health care etc…
It's just the way it is and if you can beat them, why not join them… all of us.
Sigh – if it were only that easy.
Umm – it's obvious you have NOT spoken with any civil servants about your opinion on this matter…
EM: “We will need to spend a million to collect this,” daaahhhh what would you have us do then, property tax. Mmmmm… North Side has alot of property. Yeah property tax it is!
17 years here, married to a Caymanian, involved in the community, I too have a voice and a vote!!!
Mother England did not get us into this mess, our 2-Party politicians DID. Wake up my Caymanian cousins and throw these greedy politicians OUT. They are NOT protecting you by spending $498 million dollars per year on 54,000 people….they are enslaving you to rely on the government while they fill their pockets and fly in private jets. Please educate yourselves and throw them ALL OUT.
Let me give you some simple Mac math: For every politician who receives a $100,000 salary, we would have to tax (10) Expats earning $100k via 10%. Does this "Mac math" make sense? Or is it better "cents" to cut the fat, stop the slush funds, and take our country back from overspending bloated blowhards?
"In proposing the payroll tax, the government has gone directly against advice it was given by outside consultants in the Miller-Shaw Commission report of 2010.
Quoting from the report: “Adopting any form of income or payroll tax would remove much of the fiscal allure that has boosted the economy. Any form of income or payroll taxation would require the imposition of an entirely new tax system with both high set up costs and potentially significant and permanent compliance costs."
How in the first place anyone allowed a group of 20,000 people to have its own government? Don't want to be rude, but the "leaders" of this "country" have child's mentality, not educated properly and have no experience in a political arena.
MY thoughts exactly!
Cut the waste.
Get rid of the ‘Nation Building’ vote buying slush fund (it is wrong anyway),
Get rid of personal chefs and crazy perks, like taking your driver to cell phone conferences, or paving driveways of political cronies.
Stop spending MY money on full page anti-referendum ads.
Cut the number of ‘representatives’ (as if they ever represented anyones interests but their own anyway) to bare bones.
What country on earth needs 18 representatives for 50,000 people?
make 4 districts, WB, GT, EE & BT, and Sister Islands. That would cut out 14 MLA salaries.
Can someone compute the amount that Cayman would need to pay down the "Dept". Then amortize the amount with a land tax on developed property, two rates one for Residential property and one for Commercial.
Aditional funds could be collected from a percentage of the exchange rate (the four cents) between the US and CI.
All the above wold be a tempoary measure for say six years. The DOE could collect the amount along with the garbage fees. The banks would pass on the exchange tax eash month as collected.
Idiotic – show me a tax anywhere or anywhen that was temporary.
I cannot express enough my disappointment to hear that the expat community is planning a boycott of all local businesses next week. I fully believe in freedom of speech, and peaceful protests, but a boycott to put more pressure on the small businesses is outright wrong. It is not the local businesses that are imposing this tax upon the expats , but the government whom have overspent. Don’t crucify the little guy as this will do nothing but bring division amongst the locals and expats which is exactly what we are all against! For the record, I am against this tax and for that matter any tax, but any protests that the expat/local community is proposing must be handled properly and fairly.
Since expats don't have a vocie with government, they have no choice but to protest in different ways. I actaully think a week-long purchasing boycott is an excellent idea. By the end of the week, Caymanian business owners will finaly have a reason to vocally complain about the expat tax and THOSE are voices the government will hear.
You are one of those collaborators I hope they boycott your business first. Yes to the community enhancement fee.
How about the Face-Book movement make a plead to the governor to allow borrowing up until the end of the next election condiitional upon the current government agreeing to not partipicate in the next election. Everybody wins and Cayman can start with a clean slate of new entrepeneaurs to propose ideas that arn't mucked in political strategy. You have 1 year to start a new party untied to the current schemes.
You talking about CUT, but the only way you can cut back enough to make the sufficient revenue, is if you lay off Civil Servants, and I know PPM will not do so when they get in, so…. its pretty much a tax… we have no other choice
VAT is one of the most expensive taxes to implement? Really?
I guess it's not like every point-of-sale system on the face of the planet has a built-in sales-tax module — oh, wait…they do.
Import duties only tax foreign production? Really?
I thought it taxed domestic importation of foreign goods (last time I checked Cayman doesn't have a robust manufacturing industry) and drove up the cost of living by 22%. Oh, wait…it does.
The one thing we can agree on is that government needs to cut every possible expenditure before introducing taxes. Let's leave it at that.
I agree. The budget has more than 20 million in subsidies for Cayman Airways and the Turtle Farm plus another 10 million for the slush fund. If you add to that the millions that are paid out to cronies as "consulting fees" you can achieve most of the cuts apparently needed. The rest can be achieved through attrition within the civil service – not replacing those who leave other than teachers and nurses.
"… few employers, especially small businesses, have systems in place that will allow government to easily collect this 10% cut of workers' pay". What a preposterous statement.
In fact, every employer has one: the pension contribution system. There is no reason whatsoever that the tax could not be collected through the existing system. It would be an extra column on the form. Employers remit to the pension administrator, pension administrator remits to govt. You even (theoretically) have an existing oversight and inspection regime.
The compliance and implementation cost would be negligible. You may need to increase enforcement. 5 inspectors on 100,000 each = US$500,000. About 1% of the amount expected to be raised by the tax.
There is no enforcement of the pension law.
Many employers deduct the employees' pension payments and then pocket the money. The same would happen to the "tax" deductions.
Nearly but not quite, pension contributions are capped at income upto 60k also there are plenty of people paying more than 10% into their pensions, you also have a back log of 600 companies currently non compliant with the pensions law add to that the need to distinguish between Caymanian and Expat contributions. So if you already have a failed system do you really think that by employing that failed oversight to collecting tax its going to get any better?
5 inspectors? What are you smoking? This island is built around helping tax evasion and you thing 5 little inspectors are going to be able to enforce collection?
It will cost millions to 1) have the propper laws drawn up to even make this enforcable 2) create propper collection agency. 3) train and hire the actual enforcement body 4) court cost in enforcement.
By the time propper law is written most of the expats that they plan to tax (the smart ones making the higher salaries) will already be working somewhere else and the island will be done.
So use the pension system that will no longer be required for expats subject to the tax? Brilliant – are you advising Bush?
your assertions are just not even vaguely plausible.
http://www.compasscayman.com/caycompass/2012/07/26/Mexico-fines-HSBC-$28-million-in-laundering-case/
Just an idea…. Seeing as these things are damaging our reputation and happening on our patch, shouldn't enforcement also be happening for the benefit of our country? This affairs and many others hurt our islands. Why so little (job and revenue-creating) enforcement?
While that might sound correct, that is far from the truth. Tax laws are extremly complicated, for example does the employee receive housing allowances and are they taxable, and before you say tax everything, what about medical contributions, the law provides only a basic cover, would the difference between a basic cover and a prem cover be classed as a benefit? Seriously I could go on all day with loop holes and regulation. This is not simple, if you dont believe me, look at the US or UK tax code and how many paragraghs there are to deal with this. On the basis that the employer is responsible for collecting it, if they get it wrong, will the government be coming after them for the difference as the employee may have left the jurisdiction. This is completely different than pension, each year you receive a pension statement from the admin company, showing your contributions etc, as an employer, if you make a mistake, the employee or the admin company will notify you in due course, and lastly, small business do not all have large accounting systems to deal with this, some dont even prepare accounts. Finally, they cannot even enforce the pension law, school fees and gabage fees, so do you really think 5 people they can run a tax system…. and by the way, you are missing all the benefits from your calculations above, and tax lawyers and accountants are not that cheap!
wow.. that's a canon ball that went straight to the ppm house off crewe road and hit alden right smack in de face!
Is MacKeeva in Cayman or is he in London spending MORE of our money while the good ship Cayman flounders?????
Does anyone know???
He is here.
Strange – would have bet he was going for gold in the fatathlonin London….
The govt need to cut social service snt STOP giving away $ to those who can work bug refuece to work because the govt add encouraging laziness buy giving them $ rather than finding them a job, that would save us loads of $$$$$ that wecan use!!!
Argument of the Day: "IT IS THE PREMIER THAT IS IMPOSING THE TAX"
How about raising the money directly from pensions. Let's pay off the national dept with everyone's pension. Have the government pay it back…rates got to be better than what I am currently earning…and our children won't have to pay for our folly!
I'm sure smart fiancial people can figure out home to make the proposal work.
It is amazing that a small powerful group, called the Foreign Office, can make such huge decisions for thousands of people. It is clear as crystal that they want the Premier to imposed an enhanced sustainable reveunue measure in these islands. Just which one should they choose, they left that with the Premier? Without the party bias, anyone in his shoes even Alden McLaughlin would have had to make the hard decision as to which tax was the best of the worse.
You are missing the point, perhaps deliberately. We have only reached this point of the FCO requiring new revenue measures because the UDP government lived up to the Framework for Fiscal Responsibility it signed with the UK. It has clearly overestimated the revenues and failed to take the necessary steps to streamline spending. Ironically this is exactly what it says the PPM did. How can it be that only a few months after the government gave back to civil servants their 3.2% paycut, it is saying they will cut their benefits?. How do you explain huge government giveaways a la nation building fund, house repairs, paving private car parks etc. if this is our true financial picture? The UDP is clearly out to lunch. How do you expect to gain public acceptance and cooperation to raise new revenue when you have not shown yourself to be responsible with existing revenue?
That should have been "NOT lived up" to the Fiscal Responsibility Framework.
The most common thing to do now is implement property tax or implement tax on oil into the country. That way everyone will pay via electricity bills that we have the power to control by using less electricity. There are many sustainable way to increase the budget. Plus the government themselves need a salry cut.
Caymanians will never allow a property tax. Most flocal amilies are land rich and cash poor. The on ly reason our rea estate market works is that you can will your land to a future grandchild and sit on it with no tax. Taxing land and property is a very bad idea for locals and global owners….again, too hard to collect as well.
"In proposing the payroll tax, the government has gone directly against advice it was given by outside consultants in the Miller-Shaw Commission report of 2010.
Quoting from the report: “Adopting any form of income or payroll tax would remove much of the fiscal allure that has boosted the economy. Any form of income or payroll taxation would require the imposition of an entirely new tax system with both high set up costs and potentially significant and permanent compliance costs."
Expats are replaceble! So if they want to leave, let them. More will just come and replace them. Simple as that. It happened before after Hurrican Ivan when all the expats fleed for their lives, and then we got new faces.
Hilarious, yet another example of short sighted Caymanian isolationism. You just don't get it do you, we are NOT foreigners, we are residents, property owners, investors and decent, law abiding subjects. Some of us are British Citizens, like YOU stupid.
The point is that you are NOT an independent country or have independent citizenship, in effect 'Caymanian' is no more a nationality than say, a LONDONER or NEW YORKER.
Without the so called 'foreigners' you are finished as a potential candidate for independent statehood, going on recent government activity and the pathetic showing in the referendum, Caymanians don't really care anyway. The truth is that you are not capable of running this island, (the size of most small towns in other countries) without resorting to corruption in all its cynical guises and back stabbing the very people who actually make this rock work.
Without the 'foriegn' wealth creators, the hard working skilled and unskilled labour will not follow and so your theory on an endless stream of foriegners collapses. With a spirailing cost of living and a failure to invest in effective tourism attractions and port facilities, this island will find it increasingly difficult to attract tourists and service workers alike. The consequences are potentially catastrophic, more and morepeople are already making the decision to leave and soon, more will leave than will arrive.
Good luck out there, your economy, reputation and skill base is depleting on a daily basis, make the most of these 'good times' because the expat sourced gravy train is coming to an end. See ya !!!
lol… so true :-))
The philosophy of a "throw away" society is not acceptable when what is being thrown away are peoples lives. Take that attitude, and dont expect any altruism the next time a Hurricane hits.
What Cayman needs is a stable, integrated community not this rubbish. Instead of ex pat bashing try being less xenophobic. Cayman will benefit from your change of attitude. Non-Caymanians have much to offer to this society if they stick around and are allowed to feel part of it. The colour of their skinor the nation of their birth shouldnot affect this.
lol…so self defeating ;(
Yes expats can leave but what quality of people will we get after that??? People are missing the implication this will have on the standard of living in the Cayman Islands!!!
I do not like you and if I knew who you were I would make sure you didn’t get Any of my money. Show your face please.
Are you mad? They don't want us on their rock, why should we have them on ours.
However, I do agree that other juristictions are Cayman's natural enemy, not the UK, but try telling them that.
Ezzard Miller, who said that he did not believe government had done any analysis over the “totally ill-conceived policy” – So Ezzard must want a committee. I don't think Ezzard we have time for that. The UK has demanded "robust sustainable revenue measure" in Cayman, which more than like means tax to generate the revenue. No more talks!
Had the govt. acted in a prudent manner 3 years ago and taken these matters seriously (rather than pretending we had a $20m surplus last year) there would have been plenty of time.
Well Cayman you had two parties that did nothing really but spent and borrowed and spent and borrowed. And they want people to support them. But my advise to every caymanian out there, next election vote for Independent people who think for themselves and the people and not for the party. No one is to blame but we who keep putting them in there. As for the tax, I think it is still a so-so tax compare to Income, Property, and the other evils. Expats should be thankful that it wasn't more hikes to the work permit fees.
This is how you collect the Tax.
1)Make the employer pay it upfront at the same time they pay for their employees work permit, the employer will the have to deduct the tax from the employee.
2)If the employee leaves before the year is out, make the employer submit a termination notice to Govt with which the Government grants a reimbursement to the employer for the remainder of the unpaid tax as well asthe unused remainder of the work permit. This already happens and is already in place.
Presumably you have never tried to get a refund from the government? Good luck with your cashflow management.
Are you out of your damn mind? I don't know what fantasyland you live in where businesses have piles of cash sitting around that they can just pay the tax up front. There is something called cash flow. You need to make it before you can spend it.
And where do employers find the money to pay this upfront tax, before they have ever collected the revenue that the employeeis going to generate?
Ah yes, the famous magic money tree that only politicians seem to know about
Same place they get the money to pay for work permits and relocation expenses and rent for the first six months for thier employee before the employee earn any revenue.
Cant afford it? Then hire a caymanian and stop hiring cheap labor to make huge profits. Yes you have to make a profit but the price gouging in Cayman is ridiculous. Some businesses pay their employees 5 a hour and charge their customers 75 a hour
Most small business pay minimum wage any so it would hardly apply to any of them. It would only apply to employees who effectively earn more than $10 per hour, which the vast majority of small business employees dont earn anyway.
It is amazing that a small powerful group, called the Foreign Office, can make such huge decisions for thousands of people. It is clear as crystal that they want the Premier to imposed an enhanced sustainable reveunue measure in these islands. Just which one should they choose, they left that with the Premier? Without the party bias, anyone in his shoes even Alden McLaughlin would have had to make the hard decision as to which tax was the best of the worse.
Great!!! …. Just what is needed…"hire more civil servants' ' to enforce and collect this new
tax!!! The insanity of it all boggles the mind…
99% of the talk of leaving is just that, talk. They know deep down that Cayman will still be better than every other country in the world.
If the shoe was on the other foot, if the tax were to be applied to Caymanians only, the expats would only shrug their shoulders and continue on their merry way, sending their dollars off island to fatten up their bank accounts overseas. Where is better than Cayman for expats even after the tax? Bermuda, think not. Bahamas, definitely not. Here they can outright own property, buy 2 and 3 cars and enjoy a very high quality of life albeit at a high cost but in the end, they know its worth it.
I think Caymanians should be taxed as well just to be fair. No one likes to make the hard decisions but someone has to do it. All the opposition is doing is rubbing their hands together, knowing this is helping their chances of getting in next year.
Instead of expats hiring their buddies, hire young college educated Caymanians. If this tax increases the value of Caymanians in the labor market, then do it. Some expats would have you believe that all Caymanians are lazy and will do only office work but the real reason is that they have a buddy lined up for a job.
And dont give me a BS response about needing experience. Yes it helps but usually is not neccessary except for senior or management positions. Alot of expats with experience still have to trained on the job for weeks before they actually take responsibility for a position. Why cant they hire a young college educated Caymanian for the position then. Like I said, the buddy system.
If it were the other way around, and it was only Caymanians getting taxed, it would actually make more sense, Caymanians get the benefits, Free Schooling, Housing Assistance, Unemployment Benefits, Oh and the little matter of the RIGHT TO VOTE!!!
Just to clarify, I will not be affected by this. Well thats actually BS as we will all be bady affected by this.
You're kidding right, no seriously, you are joking yea? Just who do you think you are, do you honestly believe that Cayman is the only place on earth that measures up to your blinkered view? If so, you have a huge shock coming.
Why not try a national lottery?
Enforce corruption and labour laws
make sure dart doesnt get any of the myriad concessions given by mac
Elect educated men
Bring mac to trial for the Stan Thomas corruption payments and other crimes
Hiring feeze at the civil service until a full staff review, unload the freeloaders
cut MLA salaries and stop pension payments until the retire completely from working
Stop the public purse paying for macs first class holidays that he takes every month
Ask Juju to stay in Tonga next time she goes, huge savings to be had when she is gone
Anything, anything but a tax on income, That will destroy this island by just being in existence.
You sold us out mac and you are going to blame anyone you can while you try to fill your pockets because you will not be back in, ever. You always take the cowards way out as you have proven time again that is what you are. Your little gang will not be forgotten either, you must have some serious leverage on them, share some pies with you did they?
Go home tonight, if you are on island and not on holiday again somewhere, and stay there in West Bay. Dont come back
How about that alone for some serious savings
What troubles me as well is that this sort of discriminatory taxation is already causing further division between locals and expats, as it is being agitated by the short-sighted local element and the prejudiced expatriate element alike, with the majority of right-minded folks, local and expat, being caught up in the row. Let me say this, I am a born Caymanian, with many generations of my family being born here as well, but I do NOT believe for a second that this is right, fair or even sensible, and those of us who would seek to make this a Caymanian vs. expat issue should bear in mind that the vast majority of both groups realism that this is nothing but bad for the country, as it will not work, except to provide further division, if we are small-minded enough to allow it to do so.
Wait until the dust settles from the Expat tax and it is expanded to Caymanians. Most Expats come from jurisdictions with direct taxation and have dealt with it before but when it is forced upon Caymanians with the required penalities for non payment are put into place then you will see some interesting times as Northward will need to be expanded.
I am shocked in such a country where all it takes is a few simple good ideas to increase the current revenue streams, that governement has basically thrown up its arms in defeat and transferred the risk to its most productive sector of the economy. Government must be operating in such a vain manner that the people who usually generate profitableideas have choosen to take a vow of silience.
When the tax was announced, I wondered about this facet. Generally, I agree with the concept of GOL holders contributing but I thought levying an additional fee to ALL bank transfers would address that (especially money remittances – Western Union, Monegram, etc.,etc.). For real revenue collection, this should include all Class A & B transfers, hedge funds transfers, etc. It would thus apply to every resident as well as non-residents who use our financial industry, thereby being totally non-discriminatory. Surely that could amount to multi-millions perannum.
Nonetheless, with this tax, the collection thereof is definitely going to be a question. As a small business owner, I don't particularly welcome the extra administration which I will have to do to ensure Govt receives their 10% – extra costs of doing business (surely it's not intended to leave it to employees as a voluntary process???!!!). Alternately, For Gov't to implement the collection process is yet another additional administrative fee – meaning hiring more civil servants ar in any case, more operating costs.
I just can't see how the collection facet of a tax regime will be cost-free to whomever the responsibility falls on.
Here you are Government another solution you are not likely to take on board!
I would suggest a travel fee is arranged for all residence who travel off island. 1st trip per family per year is free but the $350 duty allowance is replaced by a flat fee of $100 for family $75 for single person.
2nd trip is subject to the same fee for duty but also includes a processing fee of CI $200 per person and $275 per family.
3rd trip is subject to the same duty ($75&$100) but the processing fee jumps to CI $400 per person and CI$500 per family
4 or more trips and the fee is CI 1000 per trip
This will sort out the big wigs in the private sector and the CS as they sure love them to take all that holiday instead of spending the money here it goes overseas.
Additional penalty may apply if you fly routes that Cayman Airways sevices as the National Airline (but on say American instead to Miami) Cayman Airways is a benefit that is good to help evacuate all people (tourist, expats and Caymanians) in a time of emergency and business need to support it when it is not an emergency too.
Next, immigration can be streamlined like in London, no more checking people manually on the way out…use a passport scanner and computers to do the work…transfer these employee to the police (replacing overseas police) or work with private sector via their own department to secure employment outside of government. When it starts to effect them I bet they will be more diligent in listening to Caymanians.
Oh..the boards….the boards…the boards….a boards oversight department needs to be created after the the civil service accountants and HR staff is consildated. The best and brightest out of these should be retained to be a regulator of the government boards. This commission should be independent and have the ability to remove and place qualified persons on the government boards who don't have any conflicts of interest on daily matters.
Renumeration for board members should be reduced significantly or be included in a civil servants job description.
Privatize the hospital and UCCI…….
Export all foreign prisoners & reduce the prison guards.
Implememt a credit system for social benefits…since tax was always obtainedby tenure (i.e. spending money on island) the longer one has resided in Cayman (status holder) the more benefits they are able to obtain should they become indigent. Caymanian decendants will get credit based on their parents/grand parent time in addition to time themselves spent in Cayman. That is fair and prevents the low income status grant persons who indiscrimently were given status for votes a drive to work and not leach off Cayman's welafre system.
Have a part time Fire Dep and retrain fire fighters to be police…send more foreign police home if required.
Many other good & fair suggestions have already been provided.
This is literally the worst set of ideas I have seen in respect of this tax. Bravo.
Here’s the crux of he problem: McGyver don’t want to cut costs and waste, since that would adversely impact his travel plans and his electability (if he cuts civil service jobs), and he simply doesn’t have any plan to increase revenues in the short, medium or long term (since he is in fact negotiating to give some of those revenues away), and he won’t ask anyone for outside help, because his modus operandi is be secretive about everything he does, for obvious reasons.
So folks, we are screwed, because there is no way that this budget is going to ever balance. The simply fact is that he has been allowed to remain in office far too long. He is a very shrewd politician and he must know by now that the gig is up, no matter what he says publicly. That makes him a desperate and dangerous man, who will do whatever he can to stay in power for just another day and will continue to say that it isn’t his fault, the UK made him do it and they are targeting him etc. basically what Michael Misic is saying after fleeing and leaving the Turks in the clutches of full UK control. Now they have taxes too. Think about that for a moment. Why is it that we can never learn from the mistakes of our neighbors?
It it stupid to tax the income of expats when they already need work permits
It makes no difference whether or not the tax comes out of the increased price of work permits(which are paid for by the employer out of the expat's future earnings) or directly out of the expat's future earnings.
So just raise the cost of work permits This tax collection would not cost anything because it is already in place .
But Cayman should not be raising any taxes.
Balancing the budget by reducing costs is a far better way to go.
It does not matter which way any tax is collected All taxes are extracted out of the economy , and all have exactly the same inflationary effect (raise the price we pay for everything).
The effect of any tax is to increase the cost of doing business, and therefore to make Cayman less competitive.
Everyone knows that the Cayman Government is far too huge, expensive, and unproductive. and needs to be cut
And everyone, including Caymanians who love their behemoth Government, should know that it is them, and them only, who are paying for it through higher prices
So what should be our choice?
Raise taxes and hurt ourselves in myriad ways, or reduce costs and prosper?
.
Very good suggestion about collecting the income tax through the work permit system.
Taxing through the work permit system makes perfect sense from a cost perspective and especially from an enforcement perspective (I am sure that many employers would happily deduct the tax and then happily nor remit it to the government. Just look at the default rate with the pensions and health care deductions.)
Taxing through the work permit system would also ease the fears of Caymanians about being caught up in the income tax fiasco. Caymanians are outside the work permit world.
I highly doubt there will be legislation to even pull this off. I am sure there will be loop holes found.
Imagine that, trying to avoide tax in a tax haven.
Ive asked my employer to pay me $19,999.99 and to pay me the rest in “bonuses” at the end of the year
Loop holes. Are you kidding. All the accounting and law firms will make out like bandits in coming up with schemes to avoid this tax. The first fifty to come to my office will get a fifty per can’t discount.
The Country that did away firstly with school fees, the garbages fees, because they couldn’t collect them is going to impose taxes….I digress.
Anyone with any sense would oppose this payroll tax. The real issue is spending more than our income. Spending more than we have will always be unworkable, even with a payroll tax of 50%, which is where I believe it will be before long.
This is a turning point in Cayman's history. It has fanally arrived. Direct taxation in the Cayman Islands. Many of our forefathers must be rolling in their graves now. The event marks the end of King George declaring these islands a tax-free haven after our brave fishermen from East End rescued the more than 400 people from the Wreck of the Ten Sails. For over a hundred years we were tax-free, we treated our banking customers with respect and we prospered. But something happened up from the 1990's to this date. A decade of two parties in Cayman that wasted our funds and spent extravagantly. Pride became before destruction, and in 2012 with Caymanians having no final say whatsoever in their country of major decisions, King Bellingham is now in the process of taking that tax-free status from us. God help us all.
For heavens sake read your history books, it is clearly acknowledged that the Ten Sails myth is just that, a myth. And as for your brave EE fishermen, well !!!!!!!
Well – the wreck DID occur, and is documented on both sides of the pond!
(Have u ever visited East End to see the monument?)
As for the tax-myth – why poke at it – isnt that why you are enjoying island life now??
I admire your eloquence and passion. Like most Caymanians you have been led to believe that the King decreed this boon in appreciation of East End valour. This is, unfortunately, a myth. There is no decree, no document , and no discussion even took place.
It still doesn't detract from Cayman's more recent history of excellent financial and banking service.
Any handed down "myth" that has been passed on for generations, must have some element of truth in it. There may be no documents to prove it, but I truly believe this story from time I was young, hearing it from my grandfather. I will teach this to my children because I love the idea of bravery and valor. In the UK they have myths surroung King Arthur who led to uniting England. King Arthur and the Sword in the Stone is a myth. But because it is a story that has been handed down from generations, does that make the story completely false? I don't think so
So which version of the myth do you believe? There is Sea Worthy who thinks King George was grateful for the saving of 400 lives, and there is the other story that East Enders saved a Royal Prince from the Convert. Given that this was 1794, consideration should be given to the fact that George lll by this time was so mentally deranged that they made a "restraining chair" for him and often had to put him in a straight-jacket. Agreed that myths can be fun but real history is much more interesting!
This is all smoke screen, all are up in arms about the 10 percent, it’s really 5 percent that will be passed. Then all will say “phew, that’s better and acceptable.” watch and see. As for collecting the tax, oh my oh my. Many companies don’t pay the pension and/or health now. Good luck, just more money for some employers to pocket. Most employers will opt out of the pension. The question will be how long before all the pension plans become insolvent and collapse. We will all loose our money that we earned. Mark my words and see how wrong I will be.
Perhaps we should get rid of all these duty waivers that Mac has been giving to favored developers such as Ryan, Dr Shetty and the Dart Group .Were we to collect all of this duty there would be no need to raise taxes.The truth is that Dart has only created a handful of jobs to justify his concessions;that is because Dart is constantly buying up existing businesses with staff already in place. Oh by the way I hear Dart has now bought out WESTSTAR TV (will probably get duty concessions for any future development ,thereby denying Govt even more revenue).
What ever happened to the higher taxes on binonculars and caviar – I was sure that would have had this issue sorted out by now.
The simple solution is to have your employer reduce your pay to 20,000 dollars per year and make up the rest as a bonus. Bonuses are not considered pay and are not taxable as payroll tax.
Of course there are many other ways that will be used to avoid paying taxes which will end up costing more than government hopes to make from this scheme.
A better solution would be for the Premier to wake up and take the UK's advice on spending cuts and bite the bullet. It is time for him to realize that no matter how many churches he gives our money to or how many mortgages he takes over, his chances of re-election next year are nil.
He is acting as the middle man for our money. Instead, reduce the increases in duties, fees and fuel taxes which were levied well into this recession and allow the needy to breathe a bit. It is the high cost of living which his policies have created that arecausing him to feel the need to help people financially. By reducing the cost of living with tax breaks, there would be less need for him to practice socialism with our money. Isn't it time we separate politicians from our money and let those who are more adept manage things here. Someone who does not have to run for office and try to win favor with the voters on our dime.
Let the lying cheating and stealing begin!
Let it begin? What do you think he's been up to all these years?
The really sad thing is Forbes magazine already published an article on the islands demise. It reads as if we are a joke of a financial instituition. For all the hard working caymanians and expatriots alike this is such a blow. People who have worked hard to bring this country to prosperity and in a couple of short years have been let down. What a shame. i really think this is the end of the road. People are pulling out. its no joke. The name has turned into mud. It will take a miracle leader to pull us out of this hole. The international press is having a field day. Its unfortunate but the reality is after other countrys have seen somewhere do well its human nature to destoy them, and cayman is suffering the same treatment.
solution=casinos
(obviously only for evil expats and tourists….not the good 'christian' caymanians!)
Isn't free will and how we exercise it at the heart of Christianity?
You hit the nail on the head. All this is another smoke screen. Mac will introduce gambling without a referendum as there will be no time for it.
Every where is tax! In canda they’re taking 40% of your salary! Is that a better place to be lol? Go there instead! That is why Canadians come here!
In Canada taxpayers are entitled to free health care and education, amongst other benefits. I am in Canada right now, as a matter of fact, and man…it is beautiful here.
At least Canadians are honourable and hardworking people who consider travelling great distances to seek employment and improve their future. They also come from a country that took very difficult decisions within their society and now have economic growth and potential wealth that most other 1st world countries envy.
Instead of sitting back on your sinking rock and pretending to be the font of all knowledge, why don't you follow their example instead of criticising and creaming them for all you can grab. Get off your oversized, junk fuelled arse's and stop mocking one of the most natually diverse and beautiful countries on this planet to say nothing of some of the friendliest and most genuine people that you could ever meet.
Oh yes, I'm a Brit and very proud of our Canadian cousins and their armed forces, we support our friends and appreciate their support in return. Have you learnt something stupid?
I couldn't disagreee with you more. At least in Canada one gets something for the taxes they pay. Here one pays (yes duty is a tax) and receives very little. As a work permit holder I use very little government services, I pay for my health care which is becoming so expensive that it is unsustainable in the long run ( for all I add), I pay for my pension which by the way we ALL are going to loose as most employers are going to opt out and the pension plans will not be self sustaining and go bankrupt, I pay for my drivers license, I pay exhorbident rent. I pay hansomly for electrical power and water, So tell my friend what beside the weather is so great here? Certainly not you friendliness and hospitality. Yes, be offended and tell me not to let the door slam my ass on the way out, won't matter to me one iota. Now put that in your pipe and smoke it.
I hearing Expats are to pay taxes and have no say. I bet if I go to their country, will I have any say when their immigration and government orders me to pay their fees? Good Nite
In Canada, Canadians pay tax too. they do not expect foreign workers to shoulder the cost of government alone.
This is what they are not seeing, Canadian paying taxes in Canada, Jamaican paying taxes in Jamaica, Filipinos paying taxes in the Philippines and ONLY EXPATRIATES HAVE TO PAY INCOME TAX IN CAYMAN…
Hasn't Cayman signed a tax treaty with Canada? I have been told that the time will
come when employers that have Canadians in their employ in Cayman may be asked to
report to Revenue Canada how much these Canadians earn in Cayman so Revenue
Canada will be wanting them to pay Canadian income tax on their earnings in Cayman.
That could be a good deal more than 10%. If said Canadian was paying an income
tax in Cayman they wouldnt have to pay Canadian tax.
When a Canadian moves back to Canada and starts working there, Revenue Canada
will make them pay up if they owe anything.
Maybe someone knows if this is a fact or just heresay….
Idiot, you only pay income taxes in other countries when you are a full resident. In turn that means that you can vote, unlike Cayman where you can be a tax paying resident without any form of meaningful residential status.
Nonsense. You can only vote in most countries if you are a citizen, not merely on the basis of residence. You also have to pay tax in most countries if you work there. That is true in the U.S., Canada and Britain (except that commonwealth citizens resident in Britain can also vote).
And all European Union citizens
Yeah, if you come live in Canada you pay taxes on what you earn here, but on the other hand we'll give you free education, some of the best health care on earth (free), cheap public transportation, a safe society to live in, a social safety net (also called welfare or social assistance) when you need it, a government that while not perfect is far from the corrupt fiasco that Cayman suffers under, and the pride of knowing that our armed forces are out in the world kicking serious ass and suppressing terrorists and evil dictators worldwide… hey wait… maybe they should be heading over here, no?
Dear diary, we advertised for the legion of tax accountants to design implement and monitor my new payroll tax. No Caymanians had such experience but I may get away with it because there's hardly any of the taxable population left. Weird, when their permits weren't renewed or they upped and left, I thought their jobs would still be here for my buddies but nobody seems to be hiring, at least not here in Cayman. Elements was hiring but apparently nobody applied so even that closed. I liked it there. Now despite the money I spent on fridges, Ezzard will have to move the expat tax to being for the PRs and Caymanians. He can try but I don't think with the CUC and gas hikes and real estate slump that I know anyone who has the cash to share. Well, maybe the kids who just robbed my house again but apart from them… Even de pastor only drinkin cava these days. Glad I didn't build that port now the cruises aren't coming. I told them we are more streamlined now but they twisted it to mean there wasn't much here for their guests any more.
boogyman….rubbish!
Reminds me of the plan to grab peoples money in dormant bank accounts. The banks simply adds 1 cent to each account right before it becomes dormant, problem solved!
I really can not see how this will fly.
I am no business genious but I can tell you implementation of a tax system takes time, time is something he is drastically short on. He has 10 months left at the helm before he will be relegated to watch from the back bench or Cell Block 4.
A Tax system I would dare say would take possibly 2 years to put into place. If you think about the drafting process of teh laws to ensure it covers everything. Then it needs to be reviewed by legal team and probably sent back for some revisions. I am guessing 2-3 months just to get the papers drafted up to be happy.
Now comes finding the place, people, equipemt and software to do the service. Creation of policies, procedures and documentation. Training of Staff. Training of businesses on how to properly fill out paperwork. I really could go on. Small businesses will now need accountants to do their books because they may have to file tax documents annually.
Has anyone even thought about the financial ramifications on small businesses who will now need equipment and software plus hire an accountant to audit their books.
And on the backend of all of this the people who would contribute the most and probably give him a chance of making something worthwhile off of all of this will probably restructure their conttracts to avoid the tax completely. Why? Because they make a career out of doing it.
This my friends is a pointless waste of precious time and energy. Hell the time I spent drafting this probably already blew up the departments budget!!!
Dred. it won't fly? What is your suggestion of a better tax? Or should we cut the civil service by 600 to 800 staff?
Yes….Cut the bloated civil service, cut politician's paychecks, and enforce Immigration to balance the workforce to get back to zero unemployment like we had 12 years ago before this entitlement mentaility started. Big Mac's math did not work out! He wanted to increase work permit fees and fill the civil service, both are wrong and unsustainable. We need to have more Caymanians back in the private sector (which takes education and vocational training.)
It is not mother England who created this mess, it is our wasteful greedy politicians spending $498 million dollars a year on a populaton of 54,000.
No one to blame but our horrid politicians for the past decade. PPM or UDP, your party system has ruined Cayman. Bring back a Custos and an accountant!
Moron, a country is not Government! A country is made up of People! What you are suggesting by the layoffs of so many people is Criminal Anarchy!
My suggestion is something these idiots should have been doing for the past 3 years instead of when the sh!t hits the fan.
Go through the CS and decide who will be made redundant due to cuts. Bring all their employment records into a database which is shared by the immigration department and labor board. It does not need to contain specific names just special ID #s so peoples personal life can be kept somewhat confidential.
Once the immigration department gets an application that meets teh criteria for the employee such as job type, salary range and working hours itgets flagged. Every CS employee that meets the criteria is contacted about the post and an arrangement is madewith the employer, CS and CIG for an interview.
CIG could as a token of good gesture meet 50% of employee salary for first 2 months or pay a set amount. This will allow them to ease into a new job. And an employer to more ready to take them on.
If this sort of thing had started when these bafoons took office maybe today we would be in a far better position BUT too much kissing @#@ with CS for their vote instead of being practical.
ALSO. Implementation of new technology to handle paying of certain fees by ECommerce.
Last but not least we need to implement Casinos in Cayman. And stop all the BS rying an moaning. Casinos will bring tourism and we can work with Casinos to do tournaments during off peak season times like summer to keep Cayman more stable over the course of the year. Casinos in the Bahamas bring in 20+ Million dollars a year into the government coffers.
BUT before you start all that CUT THE DARN SLUSH FUNDS!!!!!
This is what you do. This is how you get from A to Z. If you look at things if we cut the CS therefore lowering our cost and then combine that with Casinos, Shetty hospital and cutting the slush funds we would be okay. NO NEED FOR TAXES!!!!
Tax Planning Advisor needed, willing to pay 5% of monthly salary. Respond to the ad by replying to this posting.
Apply with struck confidentiality. The usual Caymanian secrecy policies apply.
Problematic?
Just problematic?
Who would have thunk it?
It sure is and was interesting to see some peoples true colors shining through.
This is the most hare-brained idea that McXXXX has come up with yet. Does he understand that along with all of the other obvious challenges, this would require an entirely new government department, with an investigative and enforcement division, which would no doubt end up costing us more than we would ever collect, especially after the creative evasion tactics that would no doubt be engaged by expatriate workers to minimize their tax contributions. And has anyone considered the impact this could have by way of local businesses, particularly in the financial sector, exporting work and labour thereby effectively outsourcing vast amounts of work to, say, Mauritius? Think this won't happen? Well here's a news flash, it already is happening, and this will without a doubt push even more business out of Cayman. Then there's the image thing and the fear that this generates, especially when it is thrust upon us in such a manner. Just the fact that we are publicly discussing direct taxation has already sent shock waves through the business community, as well as the overseas media. So much for all of the time and money (our money at that) that this fool has spent jet-setting around the World to find and encourage overseas investment. That's all gone to hell in a hand basket now. I suppose we'll hear soon that this isnt his idea and it's really the British Government that has imposed this on him, which may be true to an extent, but then again, it is him who has brought us to this indelicate position that we are in. After all, a compromised leader is nothing more than a puppet, and history has shown that the Brits are the ultimate puppet masters. I suppose that in his death throes he intends to takes us all down with him. And to think that there are still a large number of poor blind fools that still insist on blindly following him makes me think he will be our version of Jim Jones. I hope they all drink the Kool-aid!
'Brits are the ultimate puppet masters', Maybe true, but so much easier when the subjects are complete MUPPETS.
Ha ha, good one! Just love it!
The Premier is discriminating against UK citizens and violating their human rights. He will not get away with this. Stick around.
I see a claim in the ECHR coming, watchout Cayman, all your human rights violations could soon be under the spot light. Hooray !!!!
Did he mention UK citizens or work permit holders? Is it that you are just concerned about UK citizens?
Explain whats so immoral about this? Besides you not getting your way? Even if this is legally correct, they may be called 'Human Rights', but in reality you are talking about EU legislated rights which are incompatible with the so called natural rights.
Calling them 'human rights' is nothing more than propaganda.
Alden and Ezzard will say anything, but do you notice they have no alternative as to what they would REPLACE the payroll tax with? What other tax will they then use? They lost to oppose but no solutions, and now look at us!
More like "…is not yet in receipt of the government's latest financial fiasco."
I have already asked my employer to pay me 19,000 and send the rest o my account in Miami.
The USA and UK will provide the Cayman Islands will two of the best payroll systems in the world. There are many consultants in both countries that would give government the very best systems that money can buy. No need to work the UK and USA have been at this tax game for a very long time and they both know the tricks of the trade, especially the USA. All that Cayman will have to do is just ask for advice and they will get lots of good advice no need t worry the USA will provide assistance and remember the UK is mother always watching over us and willing to give good advice. Payroll tax will be a piece of Cake. Ihope the premier bring it on soon.
And you believe they will share their systems free of charge, huh?
would that be the same US that taxes income and savings!!!!!
who cares? where there is a will, there is a way.
No shit.
Lol'd for the name
It would seem to that the most effective way to collect this additional revenue would be to simply increase work permit fees. The infrastructure is already in place.
Work permit fees have already been increased… How about limiting the amount of paper that is used island wide or implementing a garbage fee that in enforceable. Or what about a legal lottery or spread out tax for everyone?? Why is it that expats have to pay taxes and arent allowed a say in where the $$ goes to? The whole thing is completely laughable IMO.
I always paid my garbage fees, damn was I stupid!
Add more tax to KFC, we'll be rolling in cash and Caymanians will pay their fair share for a change. Or, stop discriminatory charges and taxes, stop unfair concessions, sell off the Turtle Farm and Cayman Airways, outsource government services and open up the market to international trade and suppliers.
On the other hand, carry on the way you are, deny the problem and blame everyone else. Its worked so far, hasn't it?
And now the global media are on to the story, using this news to unfairly bash Cayman once again (how I hate the "tax haven" rants by the US):
http://www.forbes.com/sites/walterpavlo/2012/07/26/you-know-its-bad-when-the-cayman-islands-calls-for-income-taxes/
Well then this leaves him no choice! We will have to allow the Chinese to build a Casino.
I agree, the whole idea is to get casinos in here, once the FCO say "no" to his latest bait.
The government needs to do things that the people want but the politiians don't, like ending the luxury travel and the vote buying slush funds and the double dipping and the personal servants for politicians and the payoffs to cronies and the giving away of government revenues. Doing those things doesn't cost anything and will produce millions for government.
This proposed payroll tax is ridiculous for so many reasons
It will be easy to avoid for skilled professionals. The onshore countries like the UK, Canada and the US have not figured out how to close all the holes with more than 100 years of experience trying.
People also need to focus on how incredibly expensive a payroll/income tax system is to run. It is ludicrous beyond believe that the country will have any net gain from imposing this system.
Bermuda gets 40% of its revenue from payroll tax.
BRING BACK GARBAGE FEE. THIS WILL HELP THE finances of the country. every house hold should not have a problem paying $100 per month. those that refuse to pay should be taken to court and fined and ordered to pay court cost also. What happen to the book rental fees that use to be in the school. IF MR anglin did not stop from buying books for the children they would be doing better in school now
Yes. Garbage fees will solve the problem. I have a bridge to sell, if you are interested.
I've heard the CI Government income is already $500 million…
If this figure is accurate, that amounts to 10 million per person based on 50 thousand residents.
How do you feel your 10 million is being spent?
Want to give them more to waste? Or would you rather demand they reduce their extravagant spending?
Check your math…..seriously. Then check it again with a calculator. 500,000,000 / 50,000 = $10,000. You're only off by a factor of 1,000….close enough 🙂
Wouldn't it be preferable for expat and Caymanian alike if the CIG just implemented controls to stop wasting the ample revenue they already collect? The boat is leaking and has been leaking for almost a decade and with a shrug of the Premier's shoulders we're asked to bail faster!
Re: Bring back the garbage fees.
One way to collect garbage fees without too much govenment expence would be for them to negotiate with CUC for a set monthly fee to be added to the electrictity bill and for CUC to pass them on to government less say a 2 1/2% administration fee.
It shouldn't be too difficult to set a fee range for different catagories such as homes, apartment blocks, businesses and the like.
It may not cancel out the debt but it would at least cover a government expence.
QUOTE: The premier said the new tax was the lesser of several evils when it comes to taxation which he said the UK were forcing him to introduce regardless of his efforts to cut expenditure." He got that right. We better be thankful that the tax he choose is not an income or property tax. We can moan and protest, but please be careful what you ask for. There is a reason why he chose this form of tax. At least hear him out cayman, before you go on streets cry discrimination and get yourselves tax to the bone. Remember expats can always leave here and go somewhere else, but this is our home. I would rather them tax than us, because they are replaceble. More foreignors will not stop coming here.
there are many expats who are not only financially invested in Cayman but emotionally too. They do not want to leave but if their permits are not renewed because their job went away to Toronto, BVI, TCI even, there will be no need for more foreigners to come and nothing on the table for Caymanians but a new tax to make up for the $ not earned. If you can sell the proposed deal to a seasoned professional from Europe, N America etc, you'll do very well in life.
Hilarious, yet another example of short sighted Caymanian isolationism. You just don't get it do you, we are NOT foreigners, we are residents, property owners, investors and decent, law abiding subjects. Some of us are British Citizens, like YOU stupid.
The point is that you are NOT an independent country or have independent citizenship, in effect 'Caymanian' is no more a nationality than say, a LONDONER or NEW YORKER.
Without the so called 'foreigners' you are finished as a potential candidate for independent statehood, going on recent government activity and the pathetic showing in the referendum, Caymanians don't really care anyway. The truth is that you are not capable of running this island, (the size of most small towns in other countries) without resorting to corruption in all its cynical guises and back stabbing the very people who actually make this rock work.
Without the 'foriegn' wealth creators, the hard working skilled and unskilled labour will not follow and so your theory on an endless stream of foriegners collapses. With a spirailing cost of living and a failure to invest in effective tourism attractions and port facilities, this island will find it increasingly difficult to attract tourists and service workers alike. The consequences are potentially catastrophic, more and more people are already making the decision to leave and soon, more will leave than will arrive.
Good luck out there, your economy, reputation and skill base is depleting on a daily basis, make the most of these 'good times' because the expat sourced gravy train is coming to an end. See ya !!!
You know what is an awesome middle finger to the Government. Companies not collecting the TAX nor remitting it. Governments reaction could be to fine/revoke licenses but they would be only hurting the Caymanians that work in those companies. Ultimatley the people have the power and when mismanagment and incompetetence is so blatant they must stand up and say NO MORE, GET OUT OR WE WILL THROUGH YOU OUT. The UK should dissolve government and call for new elections.
Is the UK not pushing for some form of taxation in Cayman?
That maybe the case and they may have good reason, given the state of Cayman's economy and aptitude to spend money it doesn't have. However, they would insist on a system that is fair, non discriminatory and non xenophobic.
You guys need to know this guy. The Premier has not submitted a budget to the FCO. Change of plans. I know him. He is going to give us a FLIPPITY FLOP with the UK tax mandate just like he does with the cruise berthing facility. That means I will have tosee the doctor for stress relief more than once. 🙂
See the comments re garbage fees makes me think that the real problem here is we need to take the garbage out ourselves and that will solve the problem. Of course, we need to start with taking the garbage out of the Legislative Assembly.