Bush outlines his income tax for expats by Georgina Wilcox

It’s now official. And if you are an expat and earning above $36,000 you will be privy to losing 10% of your income. What is worse for you is that this tax will likely include bonuses and other compensation as Government minister, Rolston Anglin – Minister for Education, Training and Employment, said the 10% will apply “to a wide definition” of salaries.

Premier, Hon. McKeeva Bush, revealed details of the controversial community enhancement fee (read TAX) at his reconvened public meeting at the Sir John A. Cumber school hall last night (1).

As his is want, and knowing he is in his own turf so it would be well received, he “had a go” at the governor telling him to “stay on the beach and sun his buns”! Totally disrespectful, shocking but he thinks it’s clever. He again maintained that he could not cut down the civil service numbers because it was the governor who hires and fires and to blame him if we have too many civil servants. It was his department and there was nothing he could do about it.

He said he didn’t want to have to implement the “fee” but he had no choice. It was being brought in as a “last resort”.

Summary of details:

1. All expat workers on work permits will be taxed 10% earning more than $36,000 per year. Note: This is different from his early announcement that it would be applied on expat workers earning above $20,000.
2. The 10% will also be applied to a wider definition of salaries that could include bonuses and other compensation.
3. The tax will not apply to non-Caymanian permanent residents or to non-Caymanian government employees.
4. No discount will be given on the tax. This means there will be no $35,000 subtraction before tax levied. Someone earning $35,000 will not have 10% tax deducted. Someone earning above that (eg. $36,000, $40,000, etc.) will have the full 10% deducted from their salary.
5. Planned introduction of a further tax of 5%, based on salaries, to be deducted on employers of expatriate staff in “certain categories of employment”. –further details ‘soon come.’
6. The collection of the tax will be executed by the Immigration Department.

These tax measures were brought in, Mr. Bush explained, as an incentive to hire more Caymanian staff.

Although Mr. Bush is confident the Immigration Department will be able to deal with the collection of the tax, because “they already have a database of work permit holders and details of salaries” he must surely know it will be not as easy as that. Yes, they know whom the work permit holders are, but how is the “policing” of the salaries they are getting to be carried out? This must mean additional staff and increased cost but then it is not the government’s department, is it?

The hall was almost full and there were no demonstrations. There were even Caymanians present who were in agreement with the implementation of the community enhancement fee.

I would love to know the name of the person who came up with that title.

iNews Cayman will be adding to this story as the day goes on.