COVID-19 recession could lead to tax
(CNS): Finance Minister Roy McTaggart has said that if the country runs out of reserves before the tourism sector and the world economy recovers, government may have to consider taxation. Though reluctant to use the word, he said that given the current situation with the COVID-19 pandemic, things could get very tough for the public purse, with an early warning already coming from the latest financial results.
Speaking ahead of Friday’s Chamber of Commerce Economic Forum, which will be held online this year, where McTaggart will be delivering an update on the Cayman Islands’ public finances, he told CIGTV’s Donna Bush that government does have reserves but they won’t last forever.
Pointing to the latest unaudited accounts for the first six months of this year, the minister said they “tell a story that is not very pretty”, which is what he will say at the forum. However, he does not expect anyone to be surprised by that. He said that he will be presenting the forecasts for the contraction of the economy and Cayman’s financial position by end of the year.
“This really concerns everybody, as, yes, we do have reserves, but they only go so far,” he warned, adding that government may have to start making tough decisions about supporting the system and the people.
While government has done quite a bit to provide support to the unemployed thus far, as reserves are depleted things could soon change, McTaggart said.
“We could start to run out of funding,” he said. “I hope we never get there because the types of decisions you need to make are much tougher to make in terms of do we need to introduce taxation… and I hate to use the word… but if the world economy doesn’t get going and we can’t reopen the tourism sector of the economy, what’s next?” the minister asked. “The reserves that we have right now will only last us so long.”
The unaudited financial report for the first six months of 2020 show that on 30 June government had more than $500 million in the bank. But this surplus at the end of the first half of the year was due to the first three months when the economy was still riding high. The first quarter is also the period when government collects almost all of its fees from the financial services.
According to the report, in the three months from 1 April to 30 June government’s coercive revenues alone were down almost 35% compared to the second quarter 2019. As a result, the minister is no longer expecting to meet his targeted budget surplus but rahter a significant year-end deficit.
In June the government put out a tender for a financial institution to supply it with “a standby line of credit in the amount of CI$500,000,000 to address the government’s potential needs as a result of the possible loss of revenue and increased expenditure related to COVID-19”.
If this line of credit, which would in effect be a giant overdraft in the first instance rather than a loan, has been used before the expiration period, then the balance would be converted into a 15-year fixed rate amortising loan. The contract has not yet been awarded.
See the unaudited accounts in the CNS Library.
See McTaggart’s preview of Friday’s address on CIGTV below:
Category: Economy, Government Finance, Politics
You are not capable of collecting income tax, it takes too many people and too much effort, and half of your businesses and individuals don’t keep any records beyond their checkbook anyway and the people with big money are experts at avoiding income tax. That leaves you with stamp tax (already 6%) duties (22% generally) and all those whopping big work permits and financial fees. You are already squeezing these things to the tune of CI$500,000,000 a year. Contrary to popular belief, it is possible to price yourself right out of business. I am hopeful that Mc Taggart is just using scare tactics.
Plus… can you imagine the number of employers who would deduct tax from their employees and then not pay it to the government, similar to what happens with pensions and health insurance? There is absolutely no appetite to prosecute those people now and there wouldn’t be in the future. Import taxes and property taxes (in addition to company fees/work permit fees) are the only feasible forms of taxation. Anything else would be a disaster.
Taxation is a short sighted idea. There are already plenty of taxes collected on island, if income or property tax is added the result will be as follows: The implementation of the new tax system, and the running of the new tax system will devour the tax revenue, so the taxes will continually rise over the years. The economy will take a hit equal to or greater than the tax revenue as people and businesses reconsider Cayman as their destination of choice. As businesses pack up, and expats leave the jobs created by their presence will lead to a drop in employment, which will again cause an increase in taxes. Cayman is already one of the most expensive places to live, if more taxes are added more money leaves.
Cayman survived the dual blow of the devastation of Ivan and the world financial crisis that followed a few years later. We will get through this, most countries in the world are taking on debt to survive, however interest rates are low and when the western world opens up again, and it will, we can pay down that debt and come back stronger.
Yeah, OK Roy McT, but tell us again how much construction concessions will be given away in the next 12 months?
Also, when will Govt stop allowing people to use govt vehicles after working hours and on weekends for going to nightclubs and grocery stores??
Ha Ha Ha
Tell me again HOW MUCH does tourism contribute to the economy? I guess it’s a little more than the lies told back in April.
Tax Baby!!!
Smoke and mirrors baby. The question is not what tourism contributes (which is indeed relatively little), but how much government wastes and over spends.
Take for example our annual Tourism Budget. How much are we spending on that Ministry this year? How much are we getting in return?
What cost cutting measures has that Ministry (as an example) implemented?
Starting with you
yep the 12% figure thrown around did not account for indirect effects on the economy and the multiplyer effect.
but yet again too many clowns in top positions here who do not understand the basics of economics
5:09 pm, which rock you was living under, don’t you know that there is already a stamp duty on sale if property. Think before you type please.
Why are they still hiring at a time like this??
Of course its time to start imposing taxes. the old have filled their boots a plenty and enjoyed 60 years of unprecedented wealth creation….time to make sure the retirement is also paid for by the younger folks. wouldn’t want to start biting into any of that nest egg now coz they’re taking it with them when they go to heaven
Would love to hear from the “It’s never been a better time to buy” guy! Only in Cayman do people think there isn’t a price to pay for government stupidity.
Politician pay cuts are evidently over due.
COVID-19 or not, our politician salaries do not equate to how little they actually do.
That will be the beginning of saving the public purse.
Not more indirect taxation. How will the average persons in the Cayman Islands survive if we are taxed more?
Give me the vote Roy and then call an election and let’s see the tax proposals in the manifesto.
“Cut the Civil Service” … really the civil servants who fall primarily into salary categories “L” to R” earn salaries between 1700 to 5000 per month would the expendable ones as those posts have far less education and experience requirements … so cutting the Civil Service means more Caymanians out of work … look at the statistics from last year … go to page 15
http://www.pocs.gov.ky/portal/pls/portal/docs/1/12840486.PDF
You gonna tax me on my 1000 per month when taxed every time I walk out my front door? Bring it on! Where my mask?
I wondered how long it would be for the PPM or as they call themselves the Unity Government to bring up the taxing of the people.
Roy should be ashamed of himself. Using Work Permits fees as one of the pillars of income for the country. Instead of getting people back to work he sends them to NAU to have Austin brag about how much they spent on social services, handing out bonuses to civil servants, giving a cost of living raise to civil servants, wasting money on a not needed so-called regiment so the Governor can have something to do, $9M+ dollars on a Port that the majority of people didn’t want and the list goes on for days while at the same time these useless politicians continue to earn almost $200K plus per year.
Austerity measures need to come into place starting with these overpriced good for nothing politicians..
There is now economy in the world flourishing in riches right now because Cayman isn’t the only country that locked down or stopped, the entire world did. People who feel we should open back up should honestly feel free to go live elsewhere and take your chances, we may not be open for people to come in but all are very welcome to leave. It’s odd that we have reached the point of talking about taxes when we are not even at the point of borrowing, most of the world is already borrowing or printing money. In addition we already pay heavy taxes in this country they are called government fees and believe it or not the financial sector which thankfully is still doing well takes the brunt of that.
It is clear you certainly do not understand economics.
Actually you don’t understand economics, when consumer spending has reduced government spending has to increase to keep the economy going.
He does not understand thinking of anyone but himself. In survival mode only. He is scared of dying from Expats.
You clearly are a smug idiot.
We have a lot of people who have second homes in Cayman Kai, condos along West Bay Road and apartments in South Sound who would love to come here for a minimum of 3 months vacation. They are willing to pay for their two weeks of quarantine. The Tourism Minister and his government are completely lost.
No Plan.
Step 1 First get more quantine facilities.
Step 2 Start using some of these vacant and new apartments/condo complexes to house people.
Step 3 after 14 days and negative test they are allowed to go to their homes.
Step 4 repeat.
I have an apartment i would rent to the Government for $1500 for two weeks or $3000 per month. I know many others would also love to too.
Ministry of Tourism stop making this look so hard. Come on Stran get off your … and sort this out. You had 6 months to come up with an idea. I know thinking is hard but i know you can do it.
Just Open the Airport….Pre Test…Test after 7 days at your own home and move on.
We are a joke other places are doing it fine and they don’t even have a second test.
If you are so whilling, why not rent it for 1500/month? Why 3000? Looks like you also want to make profit from the situation.
You keep staying “get more facilities” like they are going to pop up out of thin air. You may be willing but no many other places are willing to have their hotel, condos, or houses turned into a quarantine facility. Government cannot “make” any of the owners of these places do so.
Yeah, I’m dying to spend thousands to stay in government quarantine, after thousands to charter a flight, while my second home sits there empty and I can’t go to a restaurant. I’d rather go to Marcos or Sanibel or Sea Island for same or less money and no BS until you people figure it out. There are hundreds of islands and beaches available.
And how many of them are Covid -Free?
Not as many raging as you think.
All of them. My niece just spent a weekend in Sanibel when Isaias was heading towards Miami Beach where she lives. They loved it.
Not Covid Free.
who cares
How about renting out your property on a long term basis and in a reasonable price?
Not a 6 month contract
Not the money you used to make on airbnb
Just FAIR rent that locals can afford with housing security of a long term lease
Greed…
What happened to the EY Report and all its cost saving and money making proposals? Did that just die a slow death in a forgotten box somewhere? Start by using some of the suggestions in that report!
CNS, maybe you can ask where the government is with this?
I think they might ask for a KPMG report. It will only take a few months.
Oh one always needs a KPMG report.
Where is the KPMG report for the KPMG report?
Subject to audit by PWC or EY. The Government cannot decide which without a formal process. The tender documents are being prepared, and BDO will be vetting them, to make sure the highest standards of good governance apply.
its gathering dust beside the miller-shaw report.
welcome to wonderland.
As long as they only tax caymanians who are eligible to receive government services and funding then it will be fair. Obviously expats and residents should never be taxed as they don’t receive the same rights as caymanians.
you are of course 100% right…but the reality will be 100% the opposite. welcome to wonderland.
Typical expat mentality. If anyone should be taxed it is the expats who come here taking up unnecessary space in this country.
there won’t be any expats left to tax, just saying.
They already are – it’s called a work permit fee, which for high-earners is a LOT of tax (although generally paid by employers, unless the person has PR)
The day tax is introduced is the day peole like me leave this place and take our business with us.
We moved to the single most expensive place in the world, making a clear trade off to no direct tax (we pay plenty of tax by health insurance, pension and mostly: any time we buy something on the island) and most importantly: not have to deal with tax authorities!
I am not taking anyones job, if conditions change I will move my company to another jurisdiction, taking me job, and all the jobs of my local employees with me (along with my permit and business license cost, my company’s business slending and my family’s spending)
There are so many like me..
The service and tourism industry workers who will end up paying these taxes are not the reason cayman chose to be a 0% tax jurisdiction.
If you are going to mess with the tax issue you better have a real good plan.
Extremely unlikely at the current level of (in)competence of the local authorities.
No taxation without representation.
@5:27 the correlation is that if tourists are allowed back, then jobs will return, meaning less people Gov will need to support financially. However, I get your point as well.
Start with a 0.5% tax on property.
Can you imagine the expatriate exodus and real estate collapse that would cause?
So everybody can now buy a house at an affordable price and not the current overpriced ones? Using real estate as an investment platform only harm local people not being able to pay the current prices to buy a home.
That would be great. I would love for property prices to come down as a native Caymanian in their 20s saving for land.
Chicken Little much?
…for non-Caymanians
How Caymanians think expatriates leaving the island with their money and businesses won’t affect them or their income is laughable. Cayman needs foreign business owners and workers.
Which will be passed along as increased rent by 5% because that is what landlords do with any reason for increased rent. I.e. Raise rent as a multiple of actual increased cost. Raising the cost of living for almost everyone. Thanks for the great suggestion.
Very good idea Mr McTaggart. This is the only way to make the Cayman economy sustainable and ready for the long-term.
The only thing I’d ask is for an exemption on taxation on foreign income, dividends, interest income, rental income and capital gains. You see I moved to Cayman and received PR under the “Person independent means” exemption and believe that it would be more equitable if taxes were imposed solely on employment income. You know, “the working class”. Believe me, I’ve done my part by paying the one time large stamp duty on my SMB condos and spend a lot of money on wine and restaurants on island. I even pay some taxes already on my Airbnb rental. Trickle down effect see?
Thanks again.
Government threw away your money when they spent any of it on a port no one needs.
Yep agree, the Govt / MLAs should personally being putting 9 million back in the coffers before coming after the general population for any cash
So you’re saying to bring a tax in INSTEAD of streamlining civil service to work effectively? Most of the stuff we need from the bloated civil service sector should be done online. We shouldn’t have personal documents spread all over the island, we should have 1 online system any government entity can access and that’s it. That frees up about 66 million a year from unneeded staff.
I hope before they consider taxing people they take a pay cut before that happens.
Great, the government have finally realized that locking down the country and closing the borders will not work. The country is going to go bankrupt.
Now, instead of proposing wild and crazy ideas like more taxation in the midst of an economic DEPRESSION or gigantic loans that will be impossible to pay back, let us do the correct thing which is isolate the people at risk – people over 70 and those with serious health problems. Then, open the borders and get the tourist industry back to work.
For people who have the mental capability to understand statistics, the death rate is one in 1750 from Sweden which did not lock down at all. 90% of these were over the age of 70 and had pre-existing conditions. That amounts to about 30 people in Cayman, all who at similar risk from the common flu.
Destroying the island with direct or indirect taxation will for sure kill those people anyway as a bankrupt island will have no way of taking care of them.
There you have it – a choice between the devil and the deep blue sea. Choose wisely.
7.16 But…but…but….those 30 votes might make all the difference between $180k a year and actually working for a living!!!
Perfectly said…again. Life has a 100% mortality rate.
So let me get this right…
Government has refused to freeze or cut civil service pay and in fact gave out bonuses like it was monopoly money.
Government has closed off the island to all travel unless you go through a government run quarantine facility and people have been waiting months to come back, if they are lucky to get a spot. Forget tourism for a moment and think that there is no reliable way for businesses to move people on island as needed.
The government has failed to meet its own deadline of opening up the island to travel, because it could not organise itself properly to make its own plan work. And yes it used Covid as an excuse!
The post office is running a skeleton staff because people refuse to work. Customs is backlogged because it is so inefficient. It now takes at least a week to get items released. Public works department is running slow and can’t even paint the roads it has resurfaced.
In short government has put the economy on life support and is unable to put its own house in order.
And now they start talking about taxes. This is complete madness.
Open up the island to returning residents to quarantine in their own homes with the proper restrictions. Allow offshore finance sector to bring in qualified people on scheduled flights so people can plan their lives. Allow people who own property or commit to be here for at least 3 months to come down and stay all with proper quarantine in their own homes or place of residence. When publicized properly there would be high demand for people to stay somewhere with no Covid, great weather over the winter and great amenities. Let them spend their money, which will be less than normal tourists but better than the alternative.
Above all government should get its own house in order before it starts talking taxes.
Very well said!!
Amen. You are smart. The finance minister is a bonehead. Open the damn island. I own there and cant come back. AND invest in Amazon, Shopify, other assets. BE a finance minister not a gatekeeper.
7.06 How very dare you put forward a raft of entirely sensible suggestions!
You cannot tax your way out of a recession. Many in this country are hurting it just shows how out of touch minister McTaggart is with the common person in this country.
When you have 20+million you do not remember what it was like to live pay cheque to pay Cheque.
roy knows that…..thats how serious the situation is.
Roy is clearly out of touch. He and his Governement are talking shit. If it was so serious, why are they not taking a pay cut?! The most money goes straight to lining their pockets and enhancing their cushy lifestyle.
Disgusting and pathetic, the lot of them!
Once Govt. exposes taxation they will never repeal it. Look at the 2% duty hike. Do not allow this, it is our death sentence. Government needs to take a long hard lookin the mirror before enacting economic suicide. We can cut from many areas of our bloated civil service.
All you’ve really done is covered your own salaries…are you going to introduce tax to make sure you can continue doing that? All we got out of it was access to our own pension funds..and even that was fraught with irregularities by administrators.
What happened to Alden’s fantastic 7 years of surpluses resulting from his short sighted ” work permits and PR for whoever can afford it”. We aint workin now you pigs…your administration has been such a failure.
Then watch the mass exodus! Not to mention that is incredibly racist and they suggested it before and it caused outrage.
I am out ASAP w any tax. No taxation was the basis of my investment. Bureaucrats.
Cut the government spending as too many people working for the government. They need start pay their own pensions and health insurance. BIG NO TO TAXES!
Well I can say this much it is very sad to say, but if the government don’t bring in tax England is going to do it, you think England is happy about us not paying taxes you have a next guest coming, and for all those that moaning about cutting out tourisim in cayman you guys better think twice, because if we had tourisim now I am sure the government would not have those people to help because those people are very independent and work for their money, so if the government have to help those tourisim people now I see nothing wrong because everybody that drive taxi or tour busses are all born caymanian or status holder you definite have no work permit holder driving taxi and since the government have no problem helping those people it should not be problem to others who is sitting on their money, now is a time when we should show the kindness caymanian is know for God bless the government on their good deeds.
No chance, The rich making the Laws in England are the ones benefiting the most form Cayman’s tax free status.
The UK is not going to start picking up the tab next year for the Cayman Islands. They have their own massive problems with BREXIT.
Get ready for property tax and income tax next year. There is no alternative.
Maybe the taxi and tour bus drivers like the police and prison wardens and other civil servants with double jobs could give up there licenses so that other Caymanians who have no jobs could have those licenses. Such greedy humans taking bread out of other people mouths.
As long as they tax the expats ONLY. Tax away…
Careful what you wish for..
Wishing away!
Prepare to be weaving baskets and selling coconuts to tourists as your primary source of income.
No problem, would love to bring back some Caymanian traditions
Remember you had no money too
Poll: Who should have right of way at a roundabout?
Ans: Caymanians
Your post sounds very similar to that poll from years ago.
6.09 Spat my cornflakes out at that one!
as long as they find the missing billion…otherwise collected taxes would mysteriously disappear as well never to be found…
Just think about it, 1,000,000,000 (KYD) or 1,200,822,000(USD) is MISSING!
Wait. What? Care to elaborate? I have not heard this on the Marl Telegraph yet.
I sincerely hope that those gullible fools that have spent their saving and/or pensions on those rip off Chinese SUV’s (CHANGAN) and on staycations they really can’t afford, now think carefully about their financial future.
The Cayman Islands are on a very slippery slope downwards and everyone needs to start preparing for a crash come the winter. Debt will go through the roof and employment will be dealt a near fatal blow if our borders stay closed beyond November, which is highly probable.
So wise up Cayman.
Are you jealous that you don’t have a Changan? Trac, their team, and all of their cars are top notch.
Buying a CHANGAN is taking a big risk. They very well could be contaminated with the CORONAVIRUS!
6:16 Did you CHECK the other MADE in CHINA stuff in your
HOUSE!
The ones that have already been are island are fine. Smh, the dramatics. Nothing is wrong with Changan, quit trying to stir up fear.
Yeah they’ve been saying we are on our way out for decades…Aldart definitely brought us closer but he’s gone shortly and we’ll get some politicians that care about Caymanians.
Actually, they are a Japanese brand not Chinese. Furthermore, they are built is Dubai.
You want to make money in this island? Get rid of the 60/40 ownership rule and maybe someone will actually be willing to invest in this island.
To many people I know have been screwed by the 60/40 rule by people who think they can do it without the person who knows how to run the business, as soon as it makes money, someone wants their piece. But ends up bankrupting the business.
If the island is more profitable, more money will be spent here and not outside of the country. Its scary to put your savings in the hands of someone who thinks they can run a business and sits back in wonder when the whole thing goes to hell after the bread winner gives up.
Time to look in the mirror Cayman, do whats best for the country as a whole and not for whats best for 1 person. When that actually ends up being worse for them.
All I see is it causes fronting businesses, by people that see the light.
Typical foreigner comment. Many people invest into this island, that doesn’t need to change
As long as we can still roll you over not a problem.
This is exactly the mentality that is the problem with the 60/40 rule. It’s just a way for modern pirates to still exist.
All the downvotes for this (10:45p) comment will be from born Caymanians.
Truth hurts eh!
I was flat out stolen from, legally raped by the ‘Caymanian’ partner. And that witch still walks free. Slavery exists here. There are so many bad people, who use the archaic, disgusting, 60/40 law as a shield for their heinous actions.
Glad you put that in quotations. Many people have become “Caymanian” in the last two decades, not just the people who founded this great society that so many benefit from. All 135 nationalities and counting.
I wondered how long it would take before the word ‘‘taxation’ would be introduced.This was the intention of the U.K. government all along, hence the support of our Governor supporting our continued isolation & closedown. The U.K. will support our Island’s being shutdown for so much longer because they know that the only way out, economically, of Alden’s splendid isolation is taxation.
Problem solved & all so predictable. Very sad to see the demise of our beautiful Islands.
@5:09pm I have to say I think you maybe right on to something. Gov slowly coming out of shell…💭🤔
Higher stamp duty for all non-residents. 1 or 2% more for non-residents.
If that isn’t enough, introduce a stamp duty on the sale of a property over $X.
5:09 pm, which rock you was living under, don’t you know that there is already a stamp duty on sale if property. Think before you type please.
It’s like 6% now.
Cut spending. You can’t tax people when we are in the middle of a financial crisis. Many of us who are lucky enough to have jobs are supporting family members who are unemployed
5.96pm… we need to hold them responsible – it’s them that have and are giving away our finances/islands to make themselves look like heros to these property stricken people that they let in to Cayman. Treason.
Mr Roy, in case you hadn’t noticed everything’s taxed already before you buy it.
22% too brudda idk why these people talking about 1-2% tax
Tax 1% on non primary residences and commercial property.
I say open the border up asap and soft start tourism!
Look at new Zealand….Remember out Government wanting to be just like them!
Now after 104 days they have 13 new cases that are local transmission. This virus is here and is not going any place. If it cam back to new Zealand on food then it will happen here.
We may as well move on and start opening up.
We have numerous options that do not require opening up. There are thousands of snowbirds that would like to come for 6 months or longer. They are willing to quarantine but we do not have enough facilities and refuse them places on planes.
We have numerous work permit holders stuck overseas, with their families. They would like to come and are willing to quarantine it we do not have enough facilities and refuse them places on planes.
There are numerous international business persons who would like to come here and invest ….
Right and add the tourists and we will do even better.
Tourist did not bring it back to the Bahamas, Turks or New Zealand!
Open up asap!
Quarantine at home – solves the space problem. All these people mentioned along with retuning Caymanians can come here/come home and spend their money in the local economy.
5:24pm … and What If? What the hell are we going to do with these people if they fall ill???? Idiot! Some of you expats talk like Cayman is the only damn place you can live … I beg you all find your country or some where else to GO!
You say we have numerous options!!! All we need to do is start sending these people home. Get this place back to a manageable position. Greed is killing the goose that laid the golden egg. When are we going to understand this.
Better realized this sooner than later. We got to Bite the bullet.
We have too many sponges.
4:46pm …. some of you, along with Government, must be taking some serious illegal Stuff.
I knew it.wouldnt be long now before I hear this Cayman gone down the drain tourism in a mess long time before recovery..
Get rid of the bio button and the quarantine and open the borders! We will be down.
You are insane. We are not trying to be like America. Going nowhere fast and losing many along the way.
We Americans think of Cayman as cute but stupid, like an old girlfriend. When an old girlfriend starts asking for money, it’s a big negative. Don’t be like an old girlfriend.
Not many tourists going to pay $$$$ to sit 5 days in a hotel room and have their every move tracked like they are prisoners.
Really… ha Jonny come lately … we did it ourselves…. thank you. Go and see if we are going to miss you. Greed is over blown here – that’s why you are here, us decent Caymanians won’t miss you and your greed.
9:26pm … get rid of yourself. Go!!!!
Make ganja, lottery and offshore gambling legal. Charge $1 for every transaction that goes through Cayman and there we’ve got an additional $300 million annually in revenues. Cut Civil Service by 10%, sell the Turtle Farm, sell 50% of shares of Cayman Airways and we’ve got savings of $50 million. No need for taxes, just simple common sense will do.
They better legalize something!!
They’ve already let an investor build the Casino.
YEAH. I Agree, TAX the damn RICH!
That’s discrimination. Poor people deserve taxes, too.
Seriously? You must be wealthy to make such a senseless comment.
Poor people can barely afford life as is. Let alone slapping more expenses on top of them.
Hahahaha
Tax yo momma.
I agree. However NON-CAYMANIANS should be taxed.
Unna mad? Go back home 😴
Good luck without us.
we have an abundance of good luck then
Governments and companies WILL take advantage of this situation and raise taxes and prices.
We the people pay and the wealthy only get wealthier.
An income tax for earnings over 100000 a year would be fair.
The average commission of real estate brokers here is 180k a year. There are over 300 of them. Tax their income.
Foreign owned properties, tax them.
280 banks hiding 2 trillion !!! , tax the hell out of them.
Do not take it from us working people.
Just tax realtors!
Wow, $180k per year???? I’m a realtor with 8 years in the business, I’m working hard but nowhere near that yet but would love to get there..
Guess you need to learn the difference between a Broker and a Real Estate Agent.
Real Estate Agents are considered “independent agents” by Brokers (the owners of the real estate offices) which in essence says that they can operate under the company name but must pay all their own expenses and are not considered employees. Real Estate Agents earn a small percentage of the total commission of the sale.
Real Estate agents pay for the following and more
1. All their marketing and advertising expenses
2. Real Estate Signs
3. Business Cards
4. Provide their own transportation and fuel.
5. Trade and business licenses
6. Continuing educational courses
7. Annual real estate re-certification exams
7. 8 percent franchise fees
8. 2 percent M.L.S fees
9. 10% pension Fees
10.100% health Insurance costs
11. Anti Money Laundering training and certification
11. Desk fees in order to operate from the Brokers offices.
Brokers on the other hand take the lions share of the commissions from each Real Estate working under their company name.
There are far less Brokers on this island then there are real estate agents and I don’t know too many Real Estate Agents that make $180k per year but then again maybe I’m not trying hard enough.
If you want to tax the Brokers fine, but leave us real estate agents alone to eek out a living..
Funny, every one of their work permit applications said the agents were employees. As they were not, all monies ever earned by them and the brokers who lied on the permit applications are the proceeds of crime and liable to confiscation by the government. That would be at least $250 million. No need for taxes! Problem solved!
Oh wait, we do not ever enforce our laws. That is how we are in this mess.
Great self-righteous rant. Unlike globally, the cayman islands have no regulatory regime outlining real estate licensing. Only recently after the damming report by the CFATF, the government and industry were forced to implement more stringent AML/KYC policies. After decades of dubious dealings. CIREBA is a private organization of realtors, who have their own agenda in mind. Not a government-sanctioned body so neutrality is non-existent. One only has to observe the staff compliment and lifestyle portrayal to see that the real estate industry here is aimed only at a certain type of person.
We absolutely have a licensing regime, including through the Trade and Business licensing law. The problem is, we ignore it.
Yes!!! Corruption, corruption and more corruption. No accountability when it comes to a certain sector et al. M.L. Running the show.
Better start listening, hark the signs and warnings.
Is anyone still searching for the lost billion?
“Two ministries are, between them, unable to account for more than $1billion of public money asa result of the continued failure of the financial management systems, abuse and incompetence, says the office of the auditor general.” (21/10/2014)
Well, since we “lost” that billion we’ve probably lost a lot more… I mean it’s been almost 6 years.
If there is taxation there is little reason to be in Cayman or consider Cayman over other jurisdictions with well-established direct tax regimes. Direct taxation is horribly inefficient, and we are too small (and mobile with multiple passports) a population to do it efficiently. The lack of ability to adjust spending or utilize the huge resources our existing tax system has provided is shameful. Much of our industry and sources of government revenue can be gone in an instant. Get real about why Cayman is successful and the mobility of business and people. No one globally gives a toss about Cayman and the goose that has been laying substantial golden eggs will be gone. We are a mosquito infested swamp and sandbar. Get real. The mere suggestion of direct taxation will be used by our competitors against us and give much-needed future investors pause. Two steps back. If you think COVID is bad for health, wait until what you see what poverty can do.
Thank you — I keep reminding them that we are only three SMALL ISLANDS!!! Yep… I too believe we haven’t seen anything yet!!
I’m ok with paying taxes but we need to get access to basic services in return.
I would be more than happy to pay taxes if we all got access to basic health care, 2 year tertiary education and the removable of import Customs fees for the general public. However, imposing taxes into our current system would be a death note for most middle to lower class people on this Island.
I am not paying tax if I still have to pay 8 dollars for a gallon of milk on top of that!
And that’s the real issue, Taxes only increase, never decrease. Would you trade income and property tax for elimination of duty? Maybe, but do you believe government would do that? Never. We will be stuck with both.
When belt tightening and layoffs aren’t even contemplated as prudent options by our CFO during a global business meltdown, mobility crisis, and cusp of what could be a protracted recession/depression – there is a serious logic-disconnect with economic realities. We need a wholesale change in leadership. Tough choices need to be made. So much fat to be trimmed.
How much did we save on the travel budget.
All for a shut down that will be pointless given COVID has an R number of 5.7 and will come back sooner or later.
So line up your family members for death. Or get in line yourself. Will you volunteer to be so ill you require a ventilator? Which one of your relatives do you want to say goodbye to over video chat because you can’t be by their bedside, or watch them fall dead in the street? You can only complain because of how well of a response to the pandemic from this government. We owe this country our lives and our health.
The island did an impeccable job protecting all citizens and residents from COVID-19. You don’t want to be the US or UK. Unlike there, All Lives actually Matter here. No matter the age, race, gender, or culture. So while you’re sitting in your home healthy, with a healthy family, be grateful. You could be some where else where the government has the same mentality as you, praying for a loved one to survive.
Right look at New Zealand they did great to and now its back!
A controlled re-opening of the borders is a MUST! We must get back to a new normal and allow tourism back….Yes it has risks but they can be minimised with the testing.
There is very little chance that a tourist that is pre screened will even get on the plane here…..Just look at how many we don’t get on the repatriation flight.
We are one of only 2 in the Caribbean that are not open!
4:58pm – I agree they did do a good job of shutting down, but our big mistake the first place we should never have exploded this island/population to this degree….unacceptable! Well now …… These people should have been gone. What were you thinking Government/PPM… damn we got a mess on our hands – I hope you understand it now. Fact: you don’t have a magic button. 😳 better do what you need to do real soon!!!! Stop making the same mistakes.
Can’t wait to see how many people will be in favor of keeping this place shut down when they start laying off people in the civil service.
Being shut down to tourism, and running out of money, are largely unrelated.
Incompetence and waste is why we are running out of money. The lack of tourists is just a convenient excuse.
5.27pm Straight to truth!! Well said n so little words.
5:27pm – you got it right. Mis-management all around. Losers!!! Bad, sad days in Cayman ahead. Time to dissolve PPM.