iNews Briefs
Ex Cayman police commissioner settles suit for undisclosed sum
Joint statement issued by the Campbells law firm representing Mr. Stuart Kernohan and Attorney General Samuel Bulgin’s office, represented in the matter by the HSM Chambers law firm:
“The Cayman Islands government and the ex-commissioner of police, Mr. Stuart Kernohan, have agreed to settle their involvement in the ongoing civil matter. Mr. Kernohan served as commissioner of police from 2005-2008 and the government wishes to thank him for his commitment and service to the islands.”
Kernohan was placed on required leave in March 2008 following a covert search at the Cayman Net News offices in George Town on Sept. 3, 2007 and fired by then-Governor Stuart Jack later in the year, all part of the notorious Operation Tempura that has cost the Cayman Islands dearly. Estimates of the sum of money varies between $15M – $30M.
Kernohan, along with former Royal Cayman Islands Police Chief Superintendent John Jones, were both exonerated in the Tempura investigation.
U.S. Expats (Self-Employed)
By John Ohe
Self-employment tax (FICA) includes: Social Security and Medicare. For most people, this tax is equal to 15.3% of the reported net income. Normally, employers and employees split this tax responsibility. However, the self-employed individual is both employer and employee, and therefore, is responsible for the entire amount.
For self-employed expats, the bad news is that they cannot find relief through the foreign earned income exclusion. As far as FICA tax is concerned, there is no foreign earned income exclusion – self-employed expats are required to pay FICA tax on their entire net business income.
Is there an easy, legal way to avoid the full FICA tax? Unfortunately, the answer is no. One legal, but not-so-easy approach would be to form a Controlled Foreign Corporation (CFC), and then be hired as an employee. Since the CFC is a foreign entity, the IRS cannot force it to pay the employer portion of FICA. Therefore, you could attempt to file your income as wages on Form 1040, rather than on Schedule C.
There are 2 issues with this approach. First, there’s more paperwork involved (e.g., Form 5471). Second, if you are the only owner of the CFC, the IRS may find this tactic questionable. Especially for sole-proprietors with small-scale businesses, it’s probably not worth the hassle simply to lower FICA taxes.
This article was written by John Ohe (IRS Enrolled Agent and managing partner at Hola Expat). For more information, visit us: HolaExpat.com
Disclaimer: The answers provided in this article are for general information, and should not be construed as personal tax advice. Tax laws and regulations change frequently, and their application can vary widely based on the specific facts and circumstances involved.
200 migrants caught in Caribbean waters in 1 week
From Miami Herald
MIAMI — Coast Guard officials say more than 200 migrants trying to illegally enter the U.S. have been picked up in Caribbean waters in the last week.
Officials say all the migrants were removed from overloaded, unseaworthy vessels that lacked lifejackets or navigation equipment. They included 90 Cubans, 82 Haitians and 41 from the Dominican Republic. All were returned home.
Among the Cuban migrants were 65 rescued by two cruise ships came in separate incidents in the Florida Straits and 12 stranded on an uninhabited island in the Bahamas.
An additional 17 migrants suspected of criminal activity were brought to Miami and Puerto Rico for further investigation.
Since Oct. 1, the Coast Guard has picked up 682 Cubans, 559 Haitians and 217 Dominican migrants at sea.
For more: http://www.miamiherald.com/2014/03/31/4030188/200-migrants-caught-in-caribbean.html#storylink=cpy
SC appoints Australian arbitrator for RIL KG-D6 case [involving Cayman]
From Live Mint
The apex court appointed former Australian supreme court judge James Spigelman as the third presiding arbitrator.
Reliance Industries wanted a third arbitrator to be appointed from a country other than India, as its other contract partners—Cayman Islands-based Niko (NECO) Ltd and London-based BP Plc—are foreign companies. Photo: Pradeep Gaur/Mint
Mumbai: The Supreme Court on Monday appointed former Australian supreme court judge James Spigelman as the third presiding arbitrator in the dispute between Reliance Industries Ltd (RIL) and the petroleum ministry on demands for reimbursement of the full cost of developing its KG-D6 offshore gas field.
The Indian government had appointed former Supreme Court judge V.N. Khare and Reliance Industries had appointed former Supreme Court judge S.P. Bharucha as arbitrators, a company spokesperson said in a mobile phone message.
A bench headed by justice S.S. Nijjar appointed Spigelman, former chief justice of the New South Wales supreme court.
RIL wanted a third arbitrator to be appointed from a country other than India, as its other contract partners—Cayman Islands-based Niko (NECO) Ltd and London-based BP Plc—are foreign companies.
India’s Directorate General of Hydrocarbons wants to penalize RIL for a shortfall in natural gas production from the KG-D6 block off India’s east coast. On 1 August, the regulator told the oil ministry that an amount of or $1.8 billion may be considered for cost disallowance due to the production shortfall.
Cayman citizenship process has just got easier
Deputy Governor Franz Manderson has just announced the six- to seven-month application process for British overseas territories citizenship has been reduced to approx. three months.
Previously, applicants for citizenship had to appear four times in the government administration building before becoming naturalised. Only two visits are required now. The first one is to submit the application and the second to take part in the citizenship pledge ceremony, if successful.
It is not all good news. Applicants for citizenship status will have to pay all relevant fees up front, some of which will not be refunded if the citizenship application is not successful.
Citizenship is required to receive Cayman Islands passports.
CONCACAF Statement re General Secretary Enrique Sanz
The Confederation of North, Central America and Caribbean Association Football (CONCACAF) announced today that General Secretary Enrique Sanz will be undergoing treatment for leukemia.
The CONCACAF community expresses its full support to Mr. Sanz and his family during this challenging period and wishes him a speedy and full recovery.
We thank everyone for respecting Mr. Sanz and his family’s wishes for privacy during this time.
Economic growth potential from medical tourism
CaribPR Wire – NEW YORK—The Caribbean region can boost its bottom line by developing a medical tourism product that takes advantage of its brand as a great vacation destination, its proximity to North America as well as its tourism facilities, beaches and of course, the year-round warm weather of the region. That’s according to Dr Paul Angelchik, founder of American World Clinics, and Collin Childress, CEO of Global MedChoices.
Their comments come as both prepare to discuss the potential of medical tourism for the Caribbean in-depth at a panel at Invest Caribbean Now 2014. ICN, the biggest global investment summit on the Caribbean outside of the region, is set for the Harvard Club in New York City from 11.30 am to 6.30 pm June 4 under the patronage of Hollywood Actor Malik Yoba.
“The opportunity for the Caribbean in general is that it carries a positive connotation in the view of many for having friendly people, natural beauty and a reputation as an enjoyable, upscale destination with great visitor amenities in many locations,” said Dr Angelchik. “I have no doubt that the Caribbean can be a major region for MT activities if there is follow through on the initial buzz of enthusiasm that has defined the industry to date.”
“Creating the opportunity for economic diversification through introducing a sustainable development and growth industry, such as medical tourism, to the Caribbean can help soften the impact of cyclical North American economic downturns in tourism on the Caribbean market and leverage the supply and demand issues that are driving patient flow offshore from Canada and the US,” added CEO Childress.
In 2011, the total impact of the medical tourism industry contributed nine per cent of global GDP and accounted for 255 million jobs in the world. In the next decade, medical tourism is expected to grow by an average yearly of four per cent, contributing up to 10 per cent of future global GDP. Eventually, by 2022, it is estimated that 328 million jobs will be created in the medical tourism industry: equal to 10 per cent of jobs in the world.
Alexander Hotel Cayman Brac to close – or is it?
It has been reported the Alexander Hotel on Cayman Brac have notified their staff members the hotel will close on 13th April.
The hotel employs 16 persons and has 31 rooms. It opened next to Saltwater Pond that the owners have complained has at times an odious smell.
It would appear from documents the hotel has been running at a loss for some time with only 25% occupancy and the owners have had to invest around CI $150,000 each year to keep it going.
At the beginning of the year the developers announced a proposal to turn the Saltwater Pond into a marina. Timothy Dilbert, the hotel’s general manager, said if the development is allowed, the smell would go. He also said the marina would help attract new tourists to the island, particularly weekend boaters from Grand Cayman. He admitted the hotel was unlikely to make much money from the project and was simply trying to do something for the Brac economy and deal with the pond problem at the same time.
He said the project would require an environmental assessment, and Cabinet is requiring this to be done before considering the associated coastal works licence.
The pond is a declassified animal sanctuary, and the National Trust of the Cayman Islands says it has environmental significance as a natural habitat for the West Indian whistling duck.
Cleveland Dilbert, who is spokesperson for the developers of the marina, had intimated if they did not get approval for the marina the hotel would close.
He has responded to government ‘s demand for the environmental assessment by doing just that – closing the hotel. But has he?
On CITN/Cayman27’s News27 this evening (31), although not exactly saying he isn’t closing the hotel, Cleveland Dilbert said he wants the hotel to stay open.
So? You can read into that whatever you like.
Harry Potter spin-off ‘will be a film trilogy’
By Celestine Hendrickson From CMV Live
JK Rowling’s Harry Potter spin-off Fantastic Beasts and where to find them is to be made into a film trilogy. The book was published in 2001 and was originally billed as one of Harry Potter’s Hogwart’s textbooks. Warner Bros chief Kevin Tsujihara persuaded author Rowling to adapt the book for the big screen.
Last week Tsujihara told the New York Times there would be a trilogy of films based on the books. The book follows a “magizoologist” named Newt Scamander. Scamander is the author of a guide to magical creatures.
Set in New York the book is an “extension” of Harry Potter’s “wizarding world,” according to Rowling.
For more: http://cmvlive.com/entertainment/harry-potter-spin-off-will-be-a-film-trilogy
Antigua-Barbuda one step closer to national anti-drug strategy
From Caribbean News Now
ST JOHN’S, Antigua — The completion of a information needs and resource analysis (INRA) report has moved Antigua and Barbuda one step closer in realising the full potential of the recently approved national anti-drug strategy.
The Office of National Drug and Money Laundering Control Policy (ONDCP) announced the completion of the INRA report, commissioned by the Organization of American States (OAS)/Inter American Drug Abuse Control Commission (CICAD), which evaluated the nation’s data collection and analytical capacity on drug abuse and other drug related matters.
The INRA report examined the information and resources readily available on drug use and treatment, the needs of key institutions and a strategic analysis of the data collection mechanism.
The report also identified three main areas of development geared at significantly improving the data collection and dissemination capabilities on island. These areas include: “…the establishment of a National Drug Council to house the centralized database and to oversee the collection, analyzing and dissemination of data; the updating of the current IT hardware to support proper data management and analytic software; and the training of individuals to utilize these systems.”
The needs analysis provided a number of short, medium and long term recommendations for the targeted institutions. Short term goals such as fully establishing the drug information network; medium term goals such as re-establishing the National Drug Council and long termed goals which include the instillation of specialized programmes to properly manage the collected data.
Lt. Col Edward Croft, Antigua and Barbuda’s Commissioner to CICAD, indicated that the release of the report was timely as efforts to coordinate the relevant stake holders to provide accurate information is critical. This information will result in a more realistic picture of the efforts by agencies to implement the national drug strategy with a goal of becoming a healthier and more productive nation.
Cayman Islands signs Tax Information Exchange Agreement with Brazil – “TIEA”
From Stuarts Law
Cayman continues to deliver on tax transparency. As well as the developments related to AIFMD and FATCA, Cayman recently announced the signature of its 31st tax information exchange agreement (TIEA).
This agreement, signed on March 19 with Brazil, is an important milestone, given that Brazil is a rapidly growing economy which already has significant financial ties with Cayman.
According to the Ministry of Finance, in 2011, capital flows from global investors channelled through Cayman investment funds into Brazil totalled US$17 billion.
This latest TIEA followed hard on the heels of one with Italy, signed in January of this year.
Branson is a step closer to Virgin Cruises
From Tourism Review
Richard Branson is known for his attempts to travel the world in a number of extraordinary ways, and he has offered travellers the chance to follow in his footsteps via his Virgin airline and Virgin Galactic for years, but now he is looking to expand these options further by setting his sights on sea travel with his own cruise ships.
Virgin Cruise liners are set to take on Royal Caribbean and profit from the growing cruise tourism industry
This venture is seen as a simple, natural move for the brand; it already sells packages on other cruise liners and is a leader in global travel so having their own cruises on their ships is a logical step. The current plan is to target traditional markets like the Caribbean and Mediterranean from a base in Miami but Virgin are also aware of the growing market in the UAE. This region is investing heavily in cruise tourism, something that Royal Caribbean are taking advantage of by renewing cruises to the area in 2015-16, and Branson has indicated that a fair amount of the $1.7 billion he requires for his new fleet is coming from investors in the Arabian Gulf – the Abu Dhabi investment group Aabar already having strong ties to the company.
With the global cruise industry worth an estimated $37.1 billion and growing, and Royal Caribbean getting a sizeable 21.8% share, it is no surprise that Branson has the sector and this top competitor in his sights. It will be a while until we see Virgin branded liners on the seas because the two large ships that are planned still have to be built from scratch, but there are hopes that passengers will be sailing aboard them from as early as 2019. Further details on this new sector of the Virgin empire are expected in the next few months.
For more: http://www.tourism-review.com/richard-branson-set-up-the-virgin-cruises-news4078#zM0u5RljIhQwTMsk.99
Major money laundering network uncovered between Curacao, Aruba and Colombia
From Caribbean News Now
WILLEMSTAD, Curacao — Colombian media have reported a major money laundering operation between Curacao, Aruba and the FARC in Colombia. According to reports, about two million dollars were laundered using the illicit cigarette trade.
The cigarettes, which were intercepted, were hidden in 750 containers and have a Paraguayan hallmark. These cigarettes ended up in Colombia, through a Curacaoan and Aruban brokerage, according to the media in that country.
An international investigation team, including the Dutch Caribbean Criminal Investigation Team (RST), is investigating the case.
LIAT names new CEO
By Alexander Britell From Caribbean Journal
Caribbean air carrier LIAT has appointed David Evans as its new Chief Executive Officer, the company’s Board of Directors announced Monday.
Evans, a native of the United Kingdom, takes over for Julie Reifer-Jones, who had been serving as Acting Chief Executive Officer since the resignation of former CEO Captain Ian Brunton in September 2013.
He takes over the reins of a company in transition, currently in the midst of a major refleeting programme and suffering from continued complaints over poor customer service and efficiency.
Evans, who has almost four decades of experience in the aviation industry, was most recently a consultant on strategic and commercial issues in the Middle East.
In the late 1990s he served as a managing director for British Airways Regional, and has held posts with British Airways in countries including East Africa, Saudi Arabia, France, the Phillipines, China, Denmark and the United States, among others.
The US position included the responsibility for the airline’s activities in Latin America and the Caribbean.
Evans has also worked with the United Nations Development Programme.
Evans will take over as CEO effective April 22, according to the company.
For more: http://www.caribjournal.com/2014/03/31/38338/
Judge OKs conspiracy claim in Silicon Valley ‘No Poach’ suit
By Marisa Kendall, The Recorder
SAN JOSE — U.S. District Judge Lucy Koh ruled Friday that plaintiffs have provided enough evidence to move forward with claims that four of the nation’s largest technology companies conspired to drive down employee wages through a web of agreements not to recruit each other’s workers.
It should be up to a jury to decide whether that conspiracy existed, Koh concluded, denying motions for summary judgment filed in January by Google Inc., Adobe Systems Inc., Intel Corp. and Apple Inc.
Koh cited evidence that the companies knew of each other’s agreements, that high level executives were involved in establishing and policing the accords and that the defendants shared confidential information that they would otherwise have been expected to hold close. That evidence, she wrote, “tends to exclude the possibility that defendants acted independently.”
For instance, Google circulated an email comparing its bonus plan with those at Apple and Intel, Koh stated. Intel’s former CEO Paul Otellini, who serves on Google’s board of directors, subsequently shared the same information, according to Koh’s order, saying that he “lifted it from Google.”
Two-tonne cocaine seized in Colombia
From Business Standard
Colombia’s anti-narcotic police Saturday seized two tonnes of cocaine that allegedly belonged to the criminal gang Los Urabenos at the port of Santa Marta on the country’s northern Caribbean coast.
“The shipment was seized in the inspection area of the Port Authority of Santa Marta, after intelligence activities pointed out that a load of bananas may be contaminated,” Xinhua quoted a police report as saying.
The cocaine, valued at $56 million, were about to be shipped to the US via Central America, authorities said.
The Colombian police have seized more than 25 tonnes of cocaine this year so far.
Worker dies at stadium hosting World Cup opener
From Jamaica Observer
SAO PAULO (AP) — A worker died after falling at the construction site of the stadium that will host Brazil’s World Cup opener in Sao Paulo, a hospital said Saturday.
Fabio Hamilton da Cruz, whose age was not immediately disclosed, fell about 26 feet (8 meters) while helping install temporary seats at the Itaquerao stadium, construction company Fast Engenharia said in a statement. Firefighters said the worker fell from about 50 feet (15 meters).
The press office of the Hospital Santa Marcelina confirmed the death, saying the worker didn’t survive serious head injuries. He was pronounced dead just before he was expected to undergo surgery.
The accident comes about four months after two workers died when a crane collapsed at the stadium while hoisting a 500-ton piece of roofing.
It was the eighth death at World Cup venues so far. Three workers died in the Arena da Amazonia in the jungle city of Manaus, including a 55-year-old Portuguese man killed while disassembling a crane that was used to install the stadium’s roof earlier this year. In 2012, a worker died at the construction site of the stadium in the nation’s capital, Brasilia.
Construction was already behind schedule in Sao Paulo because of the damage caused by the earlier accident in late November.
FIFA said it was expecting the venue to be finished in mid-May, about a month before the June 12 opener, but it wasn’t clear if Saturday’s incident would prompt further delays.
About 20,000 temporary seats were being added to the new stadium to increase its capacity for the high-profile inaugural match between host Brazil and Croatia.
Construction at Brazil stadiums has been plagued by delays and three venues remain unfinished less than three months before the opener. Brazil promised all 12 stadiums would be ready by the end of last year but only six were completed by then.
For more: http://www.jamaicaobserver.com/latestnews/Worker-dies-at-stadium-hosting-World-Cup-opener
The first power generating wind turbine was this 60-foot monster
By Sam Ro From Business Insider
Green energy has been around for quite awhile.
From GE: “In 1887, Charles F. Brush built the first power generating wind turbine in Cleveland, Ohio. It was a 4-ton, 60-foot monster with 144 blades and a long, comet-like tail. It generated just 12 kilowatts of electricity – enough supply no more than three modern American homes. Brush later merged his electric company with Thomas Edison’s GE.”
For more:
http://www.businessinsider.com/first-wind-turbine-1887-2014-3#ixzz2xb98ltqV
