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Donna Wellington, President, Barbados Bankers’ Association (BBA).
Submitted by Caswell Franklyn, General Secretary, Unity Workers Union

It is no secret that I believe that the present DLP administration is bad for Barbados. Now it appears that this view is shared by the Barbados Bankers’ Association (BBA). They have announced that due to a “lack of clarity” on the process involved in the issuance of tax clearance certificates by the Barbados Revenue Authority (BRA), banks had to suspend real estate transactions. As a result, banks have suspended approximately $221 million worth of real estate related transactions.

I could be wrong but I don’t believe so; to my mind, that announcement is double speak to say that the Government is bad for business and they are prepared to take short term losses to help rid the country of this DLP administration.

I firmly believe that the announcement is a calculated move to influence political change. When the banks put pressure on potential borrowers and blame their actions on the BRA, those borrowers would become angry with the Government. People who could not get loans would not be happy with the DLP and come voting time that anger would be reflected in the results.

Even though I believe that the BBA and I share the view that the DLP is bad for business, I deplore the method adopted by them. They should be patriotically urging taxpayers to pay their fair share of the tax burden that is being heaped upon the people of this country.

I would advise the Barbados Bankers’ Association to stay away from involvement in politics on the sly and be honest enough to declare their hand.


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147 responses to “Barbados Bankers’ Association the New Third Party?”


  1. For those of you who do NOT understand the issue the tax clearances appear to be causing by way of Maria Agard’s FB page.. Also Kerri Symmonds did a reasonable job on Brasstacks yesterday although he had a hostile Glyne Murray to contend. with.

    From the desk of <strong>Kyesha Applewhaite</strong>

    Not everyone seems to be very familiar with the BRA Amendment Act controversy. That amendment basically requires a BRA clearance certificate for land transactions. Sounds very sensible, but there are few big concerns.

    Firstly, the clearance certificate is needed for the owner of the land, but there are many transactions that may be instigated by others for e.g:

    a. A tenant won’t be able to sublet to another tenant if his landlord owes BRA taxes;

    b. A qualified tenant won’t be able to exercise the rights given to them by law to buy their tenantry lot if the owner owes BRA;

    c. The Bank can’t sell a defaulting person’s property without first clearing that person’s personal taxes as well;

    d. A person who finally gets a judgment at Court can’t ask the Court to sell their debtor’s property to repay them without clearing their debtor’s personal taxes;

    e. Persons entitled to property through adverse possession probably won’t be able to get title without somehow getting a clearance certificate for the original owner;

    f. A spouse or business partner who is trying to sell property could lose their share of the sale proceeds, or some of it, if the monies need to be used to first clear the other spouse’s taxes.

    As such, if you’re a third party your right to use or enforce your own interest in a property will be deprived if the owner of the property owes personal taxes. Since that deprivation is without compensation, it could be seen as unconstitutional.

    Another big concern is that this is being applied without set off. So if you are a business owner who has fallen on hard times and is trying to refinance your mortgage, you may be unable to do so if you owe BRA $10,000.00, even if BRA also owes you $10,000.00. You will simply have to find the money to pay BRA- but not through a Bank most likely, since you don’t have a clearance certificate!

    Practically, since all banks will likely now want clearance certificates from their borrowers at least annually, it means that BRA will somehow need to churn out tens of thousands accurate clearance certificates in a timely fashion. That may be beyond their resources and capacity.

    There are other big concerns with the amendments but those are the biggest, to me.

    My thoughts are that the Government perhaps should have just strengthened the tools they already have. For instance, under the VAT Act, if Joe owes BRA $100 and he provides landscaping services to Jane, BRA can serve a notice on Jane telling her to pay it any monies she owes Joe instead, up to $100.00. Perhaps the Government could have simply required lawyers to give notice of impending conveyances and the amount of the net sale proceeds and served the appropriate notices.

    Trying to make personal taxes something like charges on land but not quite is pretty messy and can have unintended consequences.

  2. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    The island is up for grabs Caswell.


  3. @David, wow. This is absolutely mind-blowing.

    The details set out what is effectively a chill on a large swath of real estate operations and in its standard multiplier effect, the larger economy.

    Caswell’s concerns about the political involvement of the BBA is interesting but the core issue is frightening.

    Currently of course real outstanding estate taxes and the like must be paid before any sale transaction is completed so this appears to extend that ‘lien’ to all transactions on a property with taxes due.

    This will be painful initially.


  4. ‘outstanding real estate taxes’….correction!

  5. William Skinner Avatar
    William Skinner

    @ Caswell
    It is refreshing to know that some of us can put
    stupid party posturing aside and deal with the real
    issue: For too long we have not been paying taxes;
    workers national insurance deducted from pay
    packs and never reaching the NIS ; VAT taken
    from consumers and not reaching the treasury etc.
    All new systems will have some issues; the banks
    should not be allowed to act so brazenly.
    Please note this is NOT any defense of the DLP or
    the Minister of Finance.

  6. independent voice Avatar
    independent voice

    Then there is the local outrage against vote buying seems as if the bankers has launched a new and blatant approach into this criminal activity nevertheless not to be perceived as such by the bankers association but perception indeed is in the eye of the beholder.
    So far ever effort has been made to sabotage the nations economy now I guess it is the bankers association turn.

  7. Caswell Franklyn Avatar
    Caswell Franklyn

    David

    The list generated by Kyesha is calculated to do the same thing that the bankers’ association has set out to do. a and b are not true; c is desirable, it is too easy for banks to sell people’s property; d and e do not make sense; and I am not certain about f.


  8. Banks are simply protecting their interest. All taxes should be paid on real estate before title passes. The problem is everyone wants to profit from their holdings without paying taxes. I’m no fan of the DLP, but as I see it the plan is a good one. If you want to get upset, then get upset at the A’holes who withhold collected VAT, or the absentee land owners who owe property taxes, or the owners who rent to tenants. Don’t spin the same old line these owners are poor, etc. That’s a chance we all take, and should understand when we purchase real estate. Try, and not pay for a car, and the repo man will be there in a short.

    Outside of one homestead to be protected, government should foreclose on property with delinquent taxes of 7 years or more, and resell it for the same, including costs to do so. Real problems need real solutions.


  9. Pay your taxes, nuff said!


  10. @Caswell

    It still doesn’t make sense why the banks would sit on 200 plus million in transactions if there were not legitimate concerns.


  11. @William Skinner May 26, 2017 at 8:24 PM “the banks should not be allowed to act so brazenly.?

    Allowed William?

    The banks do not need anybody’s permission.

    The banks’s have acted decisively.

    Now the ball is in he government’s court.


  12. @Kevin May 26, 2017 at 9:33 PM “Pay your taxes, nuff said!”

    What if you want to pay but you just don’t have the money?

    But you want to sell a property so that you can pay the taxes.

    But you can’t sell because you owe?


  13. @racehrse May 26, 2017 at 9:02 PM “Outside of one homestead to be protected…”

    You understand don’t you that most people have only one house…and for some of us that one house is more like half a house because it is badly in need of repairs…and some of us haven’t had a raise in nearly 10 years so we can’t repair our houses because the deduction which we had for mortgage interest and repairs was taken away by this DLP government many years ago, and tuition fees are now being charged, so many of us are stuck.

    Soon the government will have to sell us to get the taxes owed, because we have nothing else left to sell.


  14. The move is heavy handed and probably won’t do what government wants it to do, that is collect more taxes.


  15. Seems to Bushie that, given the lotta shiite that have been perpetrated on Barbados by this DLP government in particular – and ESPECIALLY after they had promised to end the shiite that the BLP had started, …the Bankers are AT LAST representing a set of Bajans (or are they?) with some balls…

    Caswell is talking nonsense.
    If Bajans were not a pack of brass bowl clowns… then similar STRONG action would have been taken RIGHT after it became clear that the damn government was COMPLICIT in the CLICO grand robbery…. That we continued to absorb political piss after that CLICO disgrace was bad enuff…

    Then we had the CAHILL daylight robbery – which was only foiled because David(BU) came in with his sling-shot and and put a rock-stone between Goliath-Funble’s eyes with some documents……If we were worth more than ‘what Paddy shot at’ …. we would have gone on National STRIKE the next day…

    Then we found out that the Speaker of the House is a common thief, a bully and a lier….. and not a man moved….. Not a woman ……Not a Fella…

    Along the way, an ugly minister’s mother mysteriously gets a $5M deposit ….and not a question is asked….. not one asked…

    What the hell…!!!

    Thank you Bankers!! THANK YOU.
    It is REFRESHING to know that there are at lease five or six pairs of balls in Brass-bowl-land.

    Even if they only moved after Stinkliar came up with yet another of his idiotic shiite policies that seems to have been conceived by Angela and Alvin…. After giving the bankers a free ride with interest rates…

    This follows…
    – The shiite tax that had to be flushed…
    – The tipping fee that leads to truckers now dumping shiite all over the place to be cleaned up by government….
    – The BRA itself – the most idiotic waste of resources since public sector reform….

    What a place…..!!!
    …and Caswell is waiting for the angel Gabriel and Saint Francis of Assisi to come down and work miracles to save our sorry brass bowl donkeys…..

    Steupsss…
    Keep waiting…..


  16. @Simple Simon

    I said outside the homestead! The homestead is protected from foreclosure. More BS about mortgage deductions. You don’t buy a house because of deductions. You buy it to live in, and you buy what you can afford. You didn’t have a raise when you bought it, so more BS. So you saying you bought what you couldn’t afford in the first place! Another approach is at closing the bank should withhold all taxes due by the seller up to the point of sale, and buyer would be responsible for the remainder of the year. A simple pro-ration at closing with a check to the BRA. Don’t see why we should bailout delinquents……..


  17. @Racehrse

    Does the BRA in its present configuration have the capacity to generate the volume of tax certificates required. This is a peripheral concern.


  18. @ Racerse
    So should the BRA not be in a position to ENFORCE its laws and regulations? Why the hell are we paying public servants to sit around and make the lives of honest citizens miserable – while not bothering the damn defaulters and crooks?
    Lotta shiite!!

    Don’t they know the names and addresses of the people who owe the BILLIONS in VAT?
    Don’t they know the tax defaulters?
    Don’t they know where the lawyers, doctors, dentists, business people live and work? Why the hell should the bankers do their dirty work for them…?

    Did ‘Courts’ pay the $5M they owed? …Does BRA want their address?

    …and as to people buying homes…
    People brought homes that they could afford at the time under conditions where there were deductions available. By removing the home-owner benefits, the damn government CHANGED THE PLAYING FIELD, making some people delinquent….. what is your point?

  19. Frustrated Businessman: enact Facilitation Martial Law! Avatar
    Frustrated Businessman: enact Facilitation Martial Law!

    If more people in this country took a stand against the outright stupidity that Fumble’s Fools have heaped on this country over the past 8 years we wouldn’t be in this position now.

    No back bench
    No Senate oversight
    No recourse through jammed up courts

    The average Bajan has no idea how constipated this country has become due to poor legislation, non-existent civil service management and zero facilitation.

    We should all stop paying our taxes and bring the corrupt system to its knees.


  20. As if property transactions were not being processed too slow already.


  21. @David

    In all honesty the BRA was just a consolidation of departments within the government. Not well conceived, nor planned. Another layer of administration typical of the “D”. So I would say at this point they don’t have the capacity to keep up with the demand. I would say that it’s the cart before the horse.

    What I think should really happen as in the states is: Independent Title Co’s hold the monies for down payments, and issue title insurance at a cost of somewhere around $300, that provides a tax certificate to the lender. The same Title company closes on the property with the buyer, seller, and their agents present to sign all the necessary paperwork, and then collects, and disburses funds to all the parties present and to the others owed immediately.

    No attorneys handle, or hold any monies for months This takes attorneys, and government out of the picture.


  22. David at 12:07 AM …what exactly do you mean “Does the BRA in its present configuration have the capacity to generate the volume of tax certificates required. ”

    The BRA is the same tax authority of the B’dos Government for the last umpteen years, now of course with the various depts. amalgamated and re-branded.

    So have their competencies and operational aspects been degraded since the change?

    And have things changed drastically in the last few months.

    Prior to the piece above I always encountered the mandate that all pending and overdue real estate taxes HAD to be paid in order to complete property sale transactions: sale, transfer at death etc.

    Thus I was only taken aback by the allegation that such action would now extend to even landlord-tenant transactions…but Caswell dismisses the author’s claim as untrue.

    BTW, the other assertion that “A spouse or business partner who is trying to sell property could lose their share of the sale proceeds, or some of it, if the monies need to be used to first clear the other spouse’s taxes” is surely inflammatory and grand hyperbole.

    If there are outstanding taxes on a property then they have to be paid before the sale. Period.

    Any part owner of that property is thus liable also for the taxes and obviously any issues of share of those taxes is a dispute between disgruntled part-owners or spouses…NOT a BRA issue. The statement makes a standard matter appear scandalous from a BRA perspective. A bit of dissembling there.

    And too your point about the Banks, why indeed would they chill such economic activity.

    Nary a word from the lawyers. Their hands are at every stage: buy, sell, rent and whatever. Why no complaints from them if the matter is yet so onerous.

    Political games, indeed.


  23. @ Bush Tea

    I would like to see a list of names, and amounts that owe delinquent Property, and VAT taxes more than 3 years as well as the same for water.


  24. @ Racehrse
    Boss man, you are obviously not a Bajan…. otherwise you would KNOW that such lists of defaulting names are IMPOSSIBLE in Brass bowl land..

    What the hell do you think would happen if that was done?
    People would RUSH in to pay their dues to get their names off the list…
    People would meticulously seek to ensure that their names NEVER got on such a list…
    It would be HELL to find a defaulter after two years or so of publishing such lists….

    Then there is the cost of such an approach … probably around $500.00 dollars Bds annually in newspaper advertising costs…and the time of one clerk who would otherwise be spending 5 hours each day filing her nails…

    This is TOO SIMPLE and OBVIOUS an approach for the idiots in power.

    Do you remember that Bees Recycling started paying a few dollars to collect old metal and suddenly Barbados started looking clean as shiite?
    You recall what Stinkliar did in response…? …he imposed a ‘tipping fee’ that makes it more profitable for the haulers to dump the stuff in cart roads…. and PAID Bizzy to do what Bees was paying the people to do….

    Jackasses running things bout here boss….. common sense has been outlawed.

    ….besides, whose names you think would be high among the defaulters…?

  25. Bernard Codrington. Avatar
    Bernard Codrington.

    The Bankers association is a trade association in the same manner that the employers confederation and the trade unions are. They are within their right to point out the difficulties which any piece of legislation puts on their trade. Why should their concerns make them a political party?
    I think the author of the piece has gone a bit overboard. The Silly Season is really in full swing.


  26. You are right, Bernard. But it is the role of government to govern for the entire population, not just for foreign-owned banks.

  27. Caswell Franklyn Avatar
    Caswell Franklyn

    Bernard

    Where do you live? Obviously not in Barbados! Only diehard Dems would hold a straight face and declare that this Government is doing a good job. Even our neighbours in the Caribbean have come to that realisation and are laughing at us.

    It is obvious that this administration is clueless and all right-thinking people would acknowledge that they should go. I have no quarrel with the intention of the Bankers’ Association. They want this Government gone as soon as possible if not sooner but they are not honest enough to say so.

    If they had come out and said that this Government is bad for business and even if they refused to go further to say that there should be an election, I would be satisfied but they piggybacked on tax clearance certificates to make life harder than it is already. They are trying to encourage a backlash against the Government but don’t want the credit.

    Sent from my iPad

  28. CUP/BFP.Violet Beckles Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI Avatar
    CUP/BFP.Violet Beckles Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI

    The Bankers better check for “70 years clear titles,” land tax bill to match, same names and whoever selling need to be at the table, All parties and not lawyers standing in for buyer and sellers, Both Parties need to leave with Copy of the Deed and make sure the deed is recorded,

    lawyers hold and sell land in the name of dead people and the lawyers keep the money and hide the deeds in their DESK.

    I see some people worry about the end of the transaction and not the start,

  29. millertheanunnaki Avatar
    millertheanunnaki

    @ Caswell:
    “Even though I believe that the BBA and I share the view that the DLP is bad for business, I deplore the method adopted by them. They should be patriotically urging taxpayers to pay their fair share of the tax burden that is being heaped upon the people of this country.”

    But isn’t the BRA itself contributing to its perceived image of being unpatriotic by its perceived partisan approach to collecting taxes from known tax defaulters?

    We are sure that you did read Walter Blackman’s informative ‘epistle’ on the VAT and income tax liabilities that arose from the transactions between CLICO, Thompson Associates and Leroy Greenverbs.

    The tax amounts involved are nothing to scoff at given the serious cash flow difficulties the current administration is experiencing.

    The greater concern is whether these outstanding tax liabilities have been settled satisfactorily to all parties or have there been politically dictated instructions to turn a blind eye to the information provided by an outstanding actuary and a patriotic son of the soil.

    It’s OK to bash the Bankers’ Association for its overzealous attempt to protect the members’ interest but unless the BRA can demonstrate it consistently adopts an even-handed approach to tax collection a picture can be easily painted that there is one set of tax laws for the Medes (the ordinary taxpayers {easy targets} dealing in the sale and purchase of real estate) and another set for the Persians (the likes of Leroy Greenverbs who appear overly influential in the DLP).

  30. Vincent Haynes Avatar
    Vincent Haynes

    Frustrated

    We should all stop paying our taxes and bring the corrupt system to its knees.
    ……………………………………………………………………………………….

    This is another tool that civil society possesses to deal with irresponsible govts.

    One can but hope that this govt continues on its merry way way untill such time the real sleeping giant awakens and exercise their peacefull and legal rights.


  31. How many Banks in Barbados are owned by Barbadians ?

    I know three, CIBC, RBC and Scotia Bank are OWNED and CONTROLLED by Canadians.

    It appears to me that some members of the BARBADOS BANKERS’ ASSOCIATION are

    surrogates of foreign owned Banks.


  32. @Caswell & Bush Tea

    BU notes that the credit unions both of you strongly support appear to have no concerns like the BBA. They have not spoken publicly to the matter as far as we are aware. Are credit unions being poorly advised or is it the banks.


  33. Vincent
    The sleeping giant as you say is in my opinion,none other than Massy followed by McAl.You see Trinidadian companies withholding statutory deductions to bring this govt to its knees?No way.When we had BS&T planning to do it to Sandy,Douglas the Dem went to the press and denied it.Sirallan couldn’t play ‘touch-a-man-move-a-man’again.
    Look,let it be known to all and sundry,Taw-Madams was the onliest Prime Minister of Buhbaydus that never get beat at the polls.De man record is 100% in tack.His demise at 53,is still a cause for celebration by the notorious and vindictive Dems and they still can’t get the government managed.De dawgs…


  34. An audit of skillsets/competencies of cabinet reveals an intellectual shallowness that is scary, infact embarrassing.

  35. Caswell Franklyn Avatar
    Caswell Franklyn

    David

    The banks and the credit unions are getting the same advice, the difference in approach stems from the fact that the credit unions are not trying to effect regime change.

    Sent from my iPad


  36. @Caswell

    The meeting next week between the BRA and will determine if the banks have legitimate concerns.

  37. William Skinner Avatar
    William Skinner

    It is always unwise to throw out the baby with the bath water. Vote out the DLP if we must but always protect the sovereignty of our country. In any other country, these banks would be told to act differently or leave! The banks have halted ALL mortage transactions. Are we to suppose that a citizen who does not owe taxes and produces a tax clearance certificate cannot now purchase or sell a property ?


  38. William,
    Embarrassingly incompetent minister of finance, poor regulators. This is the equation:
    F (failed state) = I (incompetent minister) X B (badly trained regulators) + B (arrogant foreign-owned banks).

  39. Vincent Haynes Avatar
    Vincent Haynes

    Gabriel

    It appears that we have not realised that it was right under our eyes here and has awoken, manifesting itself in the Bankers action that we are now discussing,with the point made by Caswell that it is bringing govt to its knees in a wrong manner.

    The real sleeping giant still sleeps…..lets hope its never aroused.

  40. William Skinner Avatar
    William Skinner

    Everybody on this blog knows that I have long discarded the BLPDLP but this is still my country and these banks are acting as if they can do as they like. It is shameful beyond belief to read that certain party hacks on BU cannot for one single moment see the big picture here. I ask the question again: Would a Barbadian citizen who owes no taxes and produces a tax clearance certificate be DENIED the right to buy or sell a property in his or her own country by any bank operating with a licence issued by the government of Barbados ?


  41. @Bush Tea May 26, 2017 at 11:57 PM “The shiite tax that had to be flushed…”

    What if I like a simpleton went ahead and paid my solid waste tax, the government hasn’t give me a refund, and won’t offset it against property tax owing…if I shut my eyes tomorrow and the family wishes to sell the piece of old house, they can’t because I own the government land taxes, but the same government owes municipal solid waste tax..


  42. @Bush Tea May 26, 2017 at 11:57 PM “Thank you Bankers!! THANK YOU. It is REFRESHING to know that there are at lease five or six pairs of balls in Brass-bowl-land.”

    Actually I believe that the bankers are mostly female, so we are getting some action because the bankers have no balls.


  43. @racehrse May 27, 2017 at 12:03 AM @Simple Simon “I said outside the homestead! The homestead is protected from foreclosure. More BS about mortgage deductions. You don’t buy a house because of deductions. You buy it to live in, and you buy what you can afford. You didn’t have a raise when you bought it, so more BS. So you saying you bought what you couldn’t afford in the first place! Another approach is at closing the bank should withhold all taxes due by the seller up to the point of sale, and buyer would be responsible for the remainder of the year. A simple pro-ration at closing with a check to the BRA. Don’t see why we should bailout delinquents.”

    I agree that we should not bail out delinquents but in life stuff happens.

    Two years after I began paying the mortgage I was making a little sport with my beloved and oops!!! nine months later we got twins, and we already had 2 children and weren’t expecting a 100% increase in the number or our children. And the government wants us to have more children anyhow so we decided not to terminate the pregnancy.

    Or my spouse got laid off, died, was arrested, developed MS, left me for another.

    Out my dad got Alzhiemers.

    One of the children got into a bad accident and even though the court awarded a settlement, we still haven’t received any cash and we have got into debt dealing with medical bills.

    Or my wife had a stroke, and hasn’t been able to return to work. I did not expect this as she was only 42.


  44. @Bush Tea May 27, 2017 at 12:20 AM “Did ‘Courts’ pay the $5M they owed? Does BRA want their address?”

    St. George Street, Bridgetown.

    Just trying to be helpful.


  45. @William

    Would it not make sense to hear the reason or reasons the banks have taken such a draconian decision? As much as we love to hate bags some of us do not believe the Canadians and TT banks would all agree without a solid reason. We will know next week!

  46. Carson C. Cadogan Avatar
    Carson C. Cadogan

    As if Bajans needed further proof that they must not vote the Barbados Labour Party back into power as they like to call it now this.

    The Barbados Labour Party is throwing its full weight behind Bankers and some Lawyers, BLP lawyers who are calling for a repeal of the tax certificate regulation.

    The crooked Barbados Labour Party wants to protect rich people in Barbados from paying their share of taxes. What the crooked Barbados Labour Party is saying in effect is that only the poor should pay taxes.

    Come 2018 this same crooked Barbados Labour Party will be sending its candidates to knock on the homes of poor Bajans begging for their votes AND SUPPORT.

    Come next general elections DON’T VOTE BARBADOS LABOUR PARTY.

    VOTE DEMOCRATIC LABOUR PARTY.


  47. Is Carson C. Cadogan on the electoral register or in the telephone directory?


  48. Bushtea you schizophrenic yuh….but then again aren’t we all. lmao


  49. @ Bush Tea

    You hit it on the head! Run with the bulls to the BRA, just watch out at the Warrens roundabout. Who planned that fiasco?

    @ Simple Simon

    No one thrown out of their homestead for taxes, only for non-payment of their mortgage.


  50. @Caswell

    You are falling into the typical BAJAN mindset, FIND SOMEONE TO BLAME(Banks) rather than identifying the real issue, INCOMPETENCE in the Governance.

The blogmaster invites you to join and add value to the discussion.

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