SECTION | PAGE ## TITLE FOR THE SPORT/ BUSINESS SKYBOX FRIDAY OCTOBER 6, 2017 • CAYMAN COMPASS Cayman Arts Festival starts autumn season Visiting pianist Matei Varga promises a musical feast B5 Pieces explore the blurred boundaries between craft and art B6 Theater Art & Culture Music Chefs are coming ‘Out of the Kitchen’ ■ EVENTS The Rancics return! Bill and Giuliana Rancic headline the Breast Cancer Gala on Saturday. B7 The Voices for Hospices night offers ‘Nostalgia’ Local variety performers take to the stage for charity B4 CREATE TRAVEL MEMORIES. Buy a bottle of Woodbridge (750 mL) at any Tortuga Fine Wine & Spirits or Discount Liquors and enter to win a $ 500 Cayman Airways Gift Voucher.* Buy a bottle of Woodbridge (750 mL) at any Tortuga Fine & Liquors or Discount Liquors and enter to win a $ 500 Cayman Airways Gift Voucher.* *Winner to be drawn Friday, November 3, 2017. One ballot per purchase. ® The Ritz-Carlton fundraising event is a unique night out B3 New ‘Revive’ exhibition opens at gallery CAYMAN WEEKENDER The Rancics return! EDITORIAL | PAGE 4 STANDING UP TO THE BULLIES IN BRUSSELS High of 87 Low of 77 Seas: Rough with wave heights of 4 to 6 feet. Small craft should exercise caution over open waters. ESTABLISHED 1965 www.caymancompass.com – 75 CENTS – FRIDAY OCTOBER 6, 2017 SEVEN MILE BEACH WATERFRONT WALKERS ROAD TOWN CENTRE PLAZA RED BAY ALSO INCLUDING BIG KING ORIGINAL CHICKEN SANDWICH BIG FISH SANDWICHEXTRA LONG CHEESEBURGER European Union ‘blacklist’ decision due in December BRENT FULLER bfuller@pinnaclemedialtd.com The Cayman Islands is one of 92 jurisdic- tions that expect to learn by December if they will be placed on a European Union “black- list” being drawn up as part of a tax avoid- ance crackdown. The European Commission’s Tax Code of Conduct Committee, one of the EC’s most pri- vate governing bodies, has been reviewing various taxation criteria since January 2016 for all jurisdictions that have significant deal- ings with the EU. Placement on the EU tax blacklist could lead to as yet unspecified economic sanctions being imposed by year’s end, according to ear- lier statements from the commission. “Cayman has no expectation that we will be blacklisted because we have imple- mented appropriate standards,” Premier Alden McLaughlin said Wednesday. “In the past, countries that have been placed on such lists have experienced a loss of financial ser- vices and other business based upon repu- tational issues. Any loss of business, for any reason, would affect a jurisdiction’s economy and society.” Cayman Finance Chief Executive Jude Scott said it would be “counter-productive” for the EU to include Cayman on a blacklist of uncooperative taxing jurisdictions. “If the EU uses a transparent and objective evaluation process to determine its blacklist, the Cayman Islands should not be included on a list of ‘noncompliant countries,’” Mr. Scott said. “Cayman scored positively in the initial evaluations by the EU … and better than some other major countries, so it would be unfair to include Cayman on any list unless those other major countries were also included.” Brussels meetings Premier McLaughlin said he was encour- aged by successful meetings held last week in Brussels, Belgium, with top EU officials to dis- cuss Cayman’s position on the preparation of TOURISM CHIEFS HOPE LOVE WILL LURE VISITORS Latching onto a real-life Hollywood ro- mance, the Cayman Islands Department of Tourism plans to use love to lure visitors to the territory. Cayman native and actor Grace Gealey married her “Empire” co-star, Trai Byers, last fall. A new ad campaign by the Department of Tourism sets the couple in beautiful loca- tions, showing them boating, snorkeling and enjoying the Cayman nightlife. The ads are appearing in select luxury con- sumer and trade publications and, between now and the end of the year, on digital bill- boards in New York City’s Times Square. The campaign runs through September 2018. A press release from the Department of Tourism said the campaign complements the recent launch of Cayman Vows, a magazine promoting the Cayman Islands as a destina- tion for weddings and honeymoons. “We can’t imagine a more fitting ambas- sador to showcase the Cayman Islands’ un- matched wedding and honeymoon offerings than Grace Byers,” Rosa Harris, director of tourism, said in the release. Telling the couple’s story, she added, will show “there’s no better place in the world to host life’s most romantic special occasions than the Cayman Islands.” Ms. Byers, who has continued to remain in- volved in public events on the islands, such Cayman pups a big deal in the Big Apple JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com A group of puppies abandoned in the Cayman Islands have found instant fame in New York. The pups – Cordeiro, Mole, Taco and Tamale – were the stars of the show at the ceremonial ringing of the opening bell at the Nasdaq stock exchange in Times Square on Tuesday. Rescued by Cayman Islands charity Canine Friends, the pups were flown to a New York shelter last weekend to be adopted by new homes. They were chosen to take part in the opening bell ceremony for Blue Buffalo pet foods, which lists on the exchange and is promoting a “Home 4 the Holidays” pet adoption campaign. Casey Keller of Canine Friends said it was thrilling to see the Cayman puppies on the big screen in the Big Apple. “They were born to a yard dog and sent over to us to find them homes,” she said. “We flew them up there last weekend and they were on the televi- sion on Tuesday.” Volunteers in Cayman looked after the pups until they were old enough to travel to the U.S., where Canine Friends partner charity Paws Crossed Animal Rescue will find homes for them. The market bell ceremonies are held to allow listed companies to announce pro- motions or celebrate corporate milestones and are typically screened on major televi- sion networks. PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 7 » These Cayman puppies stole the show during opening bell ceremonies at the Nasdaq stock exchange in New York on Tuesday.2 REGIONAL NEWS FRIDAY OCTOBER 6, 2017 • CAYMAN COMPASS Will be CLOSED for Dinner On Saturday, October 7th As we are hosting A private function. Please call 945-8380 for appointments Cayman Orthopaedic Group DR. RICK OGILVIE, F.R.C.S.C. Orthopaedic Surgeon, Arthroscopic Surgery, Ligament Reconstruction & Sports Injuries will be at #1 Smith Road Plaza Monday, 9th October to Friday 20th October, 2017 Gobble! Gobble! Turkey! Turkey! Soon Come to HAPPY CANADIAN THANKSGIVING! Monday, 10th October 2016 945-2290 Get your orders in early! Eat-in!Take-out! At West Shore Center, Seven Mile Beach Open Daily 10am-10pm 945-2290 Sunday October 8th & Monday October 9th 2017 Tropical Storm Nate batters Central America KAYLA YOUNG kyoung@pinnaclemedialtd.com As Tropical Storm Nate continued its northwest tra- jectory toward the Gulf Coast on Thursday, reports of death and devastation began to emerge from Central America. At least 22 people were confirmed dead, many from widespread flooding and mudslides in Nicaragua and Costa Rica. Residents in parts of the Louisiana coast east of New Orleans were or- dered to evacuate in antici- pation of the storm’s arrival this weekend. A voluntary evacuation was announced for Louisiana’s barrier island community of Grand Isle. The storm remained in- land Thursday over eastern Nicaragua and Honduras. It was not forecast to reach hurricane strength until late Friday, after the system passes over Mexico and returns to warm Ca- ribbean waters. The system is not forecast to hit the Cayman Islands. Cloudiness and showers as- sociated with the storm, how- ever, are expected to affect the islands. One to two inches of rain are forecast for the Cayman Islands and Jamaica through Saturday. Radar im- ages show scattered showers moving north from the south and east of Cayman, the Na- tional Weather Service re- ported. Flooding could occur in low-lying areas. Small craft in open waters should exercise caution. Much of Central America, from Costa Rica to the Yu- catan Peninsula and western Cuba remained under alert. The center of the storm passed over northeastern Ni- caragua and eastern Hon- duras Thursday afternoon and continued to move north toward the Yucatan Penin- sula. Maximum sustained winds were 40 mph. The storm continued to pick up speed, moving 9 mph northwest. The system was expected to turn north- northwest at a faster rate late Thursday and continue on the trajectory through Friday night. The system could be- come a hurricane by Friday. Residents of Honduras, the Bay Islands, western Cuba and the Yucatan Peninsula were advised to closely mon- itor the progress of the storm. Nate was expected to reach its closest point to Grand Cayman Friday morning, at some 275 miles southwest of the island. As of Thursday, Cayman was no longer projected to fall within the path of tropical storm-force winds. Areas around the north- western Caribbean were ex- pected to experience rough seas later this week. Swells will likely generate life- threatening surf and rip cur- rent conditions. A Tropical Storm Warning remained in effect from Sandy Bay Sirpi, Nicaragua, to Punta Castilla, Honduras. A Hurricane Watch was in ef- fect for Punta Herrero to Rio Lagartos, Mexico. Reports Thursday after- noon from Nicaragua, where the tropical storm made land- fall Thursday, indicated at least five deaths from the storm. Areas of the country continued to fall under yellow alert, as floods and strong currents threatened residents. Nicaragua was expected to receive 15 to 20 inches of rain, with up to 30 inches in isolated areas. Costa Rican press re- ported seven deaths Thursday from heavy rains, mudslides and falling trees. Fifteen people were reported missing in Costa Rica. Southern Honduras and western Nicaragua were an- ticipating 6 to 10 inches of rain with isolated rainfall up to 20 inches. Heavy rains are expected over a wide area of the Pacific Coast and Central America, reaching far from the center of the storm. Flash floods and mudslides could threaten much of the region. RAIN CLOSES GEORGE TOWN LANDFILL The George Town landfill is scheduled to be closed through Saturday because of repairs to the main access road. The Department of Environ- mental Health advised on Thursday that the landfill had to close earlier in the day to fa- cilitate repair work to the main access road, which was exten- sively damaged during recent heavy rains. It was expected that repair work would take about 48 hours, after which the landfill will reopen. The 24-hour public drop-off site at the entrance of the landfill remains open for dis- posal of small amounts of waste. For further information, contact the Solid Waste sec- tion at 949-8793. UN ending 13-year military peacekeeping mission in Haiti PORT-AU-PRINCE, Haiti (AP) – A U.N. peacekeeping mis- sion in Haiti that has helped maintain order through 13 years of political turmoil and catastrophe is coming to an end as the last of the blue-helmeted soldiers from around the world leave de- spite concerns that the police and justice system are still not adequate to ensure secu- rity in the country. The U.N. lowered its flag at its headquarters in Port- au-Prince during a cere- mony Thursday that was at- tended by President Jovenel Moise, who thanked the or- ganization for helping to pro- vide stability. After a gradual winding down, there are now about 100 international sol- diers in the country and they will leave within days. The mission will officially end on Oct. 15. Immediately afterward, the U.N. will start a new mis- sion made up of about 1,300 international civilian police officers, along with 350 ci- vilians who will help the country reform a deeply trou- bled justice system. Various agencies and programs of the international body, such as the Food and Agricultural Or- ganization, will also still be working in the country. “It will be a much smaller peacekeeping mission,” said Sandra Honore, a diplomat from Trinidad and Tobago who has served since July 2013 as the head of the U.N. mission in Haiti known as MINUSTAH, its French ac- ronym. “The United Nations is not leaving.” MINUSTAH began opera- tions in Haiti in 2004, when a violent rebellion swept the country and forced then- President Jean-Bertrand Aristide out of power and into exile. Its goals included restoring security and re- building the shattered polit- ical institutions. In April, the Security Council deemed the country sufficiently stable and voted to wind down the international military pres- ence, which then consisted of about 4,700 troops. Many Haitians have viewed the multinational peacekeepers as an affront to national sovereignty. U.N. troops are believed to have inadvertently introduced the deadly cholera bacteria to the country and have also been accused of causing ci- vilian casualties in fierce battles with gangs in Port- au-Prince and of sexually abusing minors. But the mission, with ad- ditional help from the U.S. and other nations, is also credited with stabilizing the country, particularly after the January 2010 earthquake, and building up the national police force. “The job may not be com- plete but they have essen- tially done much of what they were originally designed to do in terms of preventing any kind of armed takeover of the state, in terms of in- creasing the safety of civil- ians,” said Mark Schneider, a senior adviser with the Center for Strategic and In- ternational Studies in Wash- ington. “It takes work to maintain that and Haiti needs to maintain that.” MINUSTAH, Schneider said, has been key in helping Haiti develop a credible ci- vilian national police from “almost zero” to its current level of about 15,000 offi- cers, which most experts believe is still too small for a country of nearly 11 mil- lion. The police force was in- tended to replace the army, which was disbanded by Aristide in 1995 because of its repeated role in a se- ries of coups and that the Haitian government is now seeking to reconstitute over international objections. United Nations peacekeepers gather before the end of operations ceremony of the United Nations Stabilization Mission in Haiti, in Port- au-Prince on Thursday. - PHOTO: AP3 LOCAL NEWS CAYMAN COMPASS • FRIDAY OCTOBER 6, 2017 WINE | BEER | SPIRITS LIQUOR 4 LESS Formal plea deal system for criminal informants considered JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com When bank robber Marlon Dillon agreed to turn po- lice informant after being caught hiding under a shed at his home with $100,000 in cash nearby, his evidence helped solve a number of serious cases. Dillon’s testimony was key to securing convictions against his accomplices in the robbery of Cayman Na- tional Bank, another armed raid on WestStar television center and in a separate gang murder case. But the circumstancesof his cooperation with police and prosecutors led to his evidence being challenged and an application for the trial to be dismissed. Dillon, according to his own evi- dence, was left feeling dis- enchanted and betrayed over promises he believed had not been kept. Now the Cayman Islands Law Reform Commission is considering options for a more formal plea deal system that would regulate how such agreements are negotiated and how cooperating crimi- nals are rewarded. It is seeking public input on whether Cayman should adopt a U.S.-style “plea bar- gain” system or the more lim- ited U.K.-style approach that would essentially put the current informal system on a more structured legal footing. Citing the Dillon case, the commission notes in a dis- cussion paper, “If there had been a clear and transparent system of dealing with ac- complice evidence, the pro- cess of obtaining evidence in this case may not have led to an application which could have seen the dis- missal of charges against all of the defendants.” Currently, prosecutors can and do work with crim- inals who plead guilty and offer testimony against their accomplices or help secure convictions in other cases. This is done through an in- formal Common Law pro- cess known as “Queen’s Ev- idence” and no explicit promises can be made. “The existing practice is that should an accomplice inquire of the police as to any benefit if assistance is provided, the police advise that no agreements or prom- ises can be made and that it is a matter for the courts on the sentencing of an ac- complice whether or not to take into account any as- sistance provided to the Crown,” according to the dis- cussion paper. In the Dillon case, cited in the report, he received a three-year sentence for his part in the robbery, while the others in the gang received sentences of between 11 and 14 years. The judge cited his cooperation as key to the re- duced sentence. More recently, the com- mission notes, Justin Ebanks, who was facing a mandatory minimum sentence of seven years after being found in possession of a loaded semi- automatic pistol was jailed for 18 months after giving eyewitness evidence in an- other murder trial. Highlighting a rise in gun crime and the reluctance of fearful witnesses to give ev- idence against violent crim- inals, the Commission sug- gests that a more formal system of obtaining evidence from criminals against their co-accused may lead to more prosecutions in serious cases. It suggests the current in- formal system relies on the discretion of prosecutors and sentencing judges. “It has been argued that such broad discretion can lead to inconsistent deci- sions and abuses. While there is no evidence of such incon- sistency in this jurisdiction, there is a need for more vis- ibility and accountability in particular from the first stage at which an accomplice of- fers to provide assistance, as well as through to the con- clusion of any given case. The central challenge there- fore is providing for a more formal system that would ad- dress greater transparency in the process.” The U.K. has now formal- ized the process of Queen’s Evidence through the Se- rious Organized Crime and Police Act 2005, which pro- vides legal authority for sen- tence reductions for defen- dants who plead guilty and cooperate with the prosecu- tion of others. The Cayman Islands Law Reform Commission has produced draft legisla- tion dealing with immunity agreements and reduced sen- tences for cooperating wit- nesses, based on the U.K. law, for discussion. It also high- lighted other possible op- tions, including the U.S. plea bargaining system and the Jamaican approach, which appears to be a hybrid of the U.K. and U.S. systems. Seeking input from lawyers and the judiciary, the com- mission asks, “How often is the Common Law practice of Queen’s Evidence used, how effective is it and can it be en- hanced by statutory codifica- tion? In the alternative, should we follow the USA plea deals system, which not only fa- cilitates the gathering of evi- dence from accomplices but shortens the trial process?” The discussion paper and bill are published at www.lawreformcommission.gov.ky. Comments and submissions can be made to Jose Griffith, acting director of the commission, at cilrc@gov.ky. A screen grab from CCTV video shows the 2012 armed robbery at Cayman National Bank. The case of an informant who was involved in the robbery and gave evidence against his accomplices is cited in the Law Reform Commission’s report on legislation governing plea deals.The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. The European Commission’s Tax Code of Conduct Committee is currently considering whether or not to place Cayman (among 91 other jurisdictions) on an EU blacklist of places it deems “non-compliant with global tax good governance standards.” Make no mistake about it. The EU and its regula- tory henchmen (read Organisation for Economic Co- operation and Development) are not trying to export their failed economic policies. They are trying to export their failed left-leaning social policies. At least Britain, collectively, had the fortitude to say “enough” to the bureaucratic bullies in Brussels when it voted, to the dismay of globalists everywhere, to withdraw its membership in the EU (the so-called “Brexit” vote). Other nations are now contemplating following in Britain’s footsteps, and Switzerland, of course, had the good sense never to participate in this ill-conceived utopian union in the first place. Once again, Cayman finds itself in the crosshairs of a far-away collective of European countries that wants to dictate to us how, and how much, we should tax our citizens. It’s one thing for Cayman to take “orders” from London; it is quite another for us to take them from Brussels. Lists, in and of themselves, are “listless” threats. Cayman is a perennial headliner on various rankings and registers. (We have our own success to blame. What “reputable” collection of so-called tax havens would be considered complete without the obligatory inclusion of the “notorious” Cayman Islands?) More troublingly, the contemplated EU tax blacklist, which could be announced in December, also carries the threat of possible, unspecified, economic sanctions. Most troublingly of all, however, is if, in Cayman’s leaders’ efforts to appease the EU and preserve Cayman’s business with EU countries, they end up destroying Cayman’s business model entirely. Cayman needs to begin contemplating a financial services future that discounts, if not eliminates, its dependency on complying with the political agenda of European regulators. Cayman attorney and industry sage Anthony Travers puts it this way: “The Cayman Islands would do better to repeal the transparency arrangements with EU jurisdictions, repeal the Common Reporting Standard and focus on transactional flows from the rest of the world without further interference.” Premier Alden McLaughlin told the Compass that meetings with top EU officials have been encouraging, but we are skeptical. In our view, the EU’s “standards of fairness” are nothing more than the continuation of a campaign to dictate dogma and policies to non-Euro- pean jurisdictions. Cayman’s vibrant economy does not depend on direct taxation. To the contrary, our success is predi- cated on the lack of direct taxation. The idea of imposing direct taxation (and collection) on Cayman’s population would be ideologically unsound, politically unpopular and practically unworkable. (Our govern- ment can’t even collect garbage fees from residents, hospital fees for services rendered, or fines levied on our publicly funded national airline.) We have witnessed an unending series of capitula- tions from our financial industry, and our government, as they attempt to appease foreign functionaries in Brussels, Paris and, yes, London. Cayman’s beneficial ownership registry, and new regulations on local non- profits, are merely the latest sacrifices to be laid upon the altar of “compliance.” As Mr. Travers told the Compass, “You cannot appease an alligator by giving it just one of your legs. You will end up legless, very possibly worse.” We urge Cayman’s leaders in the public and private sector to send these international interlopers a strong message of confidence in our economic model (it’s far better than theirs) and a reminder that our allegiance is to the United Kingdom – certainly not to them. Standing up to the bullies in Brussels FRIDAY OCTOBER 6, 2017 • CAYMAN COMPASS Tax cuts, cherry-picked data and interesting admissions There are several chal- lenges when trying to ana- lyze the impact of policy on economic performance. One problem is iso- lating the impact of a spe- cific policy. I like Switzer- land’s spending cap, for instance, but to what extent is that policy responsible for the country’s admirable economic performance? Yes, I think the spending cap helps, but Switzer- land also many other good policies such as a modest tax burden, private retire- ment accounts, open trade, and federalism. Another problem is the honest and accurate use of data. You can make any na- tion look good or bad simply by choosing either growth years or recession years for analysis. This is known as “cherry-picking” data and I try to avoid this method- ological sin by looking at multi-year periods (or, even better, multi-decade pe- riods) when analyzing var- ious policies. But not everyone is careful. Jason Furman, who was Chairman of the Council of Economic Ad- visers during Obama’s second term, has a column in a recent Wall Street Journal. What immedi- ately struck me is how he cherry-picked data to bol- ster his claim that the gov- ernment shouldn’t reduce its claim on taxpayers. Here’s his core argument: “the 1981 and 2001 model of tax cuts makes no sense in today’s fiscal environ- ment. Tax revenue as a per- centage of gross domestic product is lower today than it was when Presidents Reagan and George W. Bush cut taxes.” But here’s the problem. If you look at OMB data for the entire post-World War II era, tax revenues have av- eraged 17.2 percent of GDP. If you look at CBO data, which starts in 1967, tax revenues, on average, have consumed 17.4 percent of GDP. So Furman’s implica- tion that tax receipts today are abnormally low is com- pletely wrong. Moreover, he shows the projection for 2017 tax re- ceipts, which is appropriate, but he neglects to men- tion that the Congressional Budget Office’s forecast for the next 10 years shows rev- enues averaging 18.1 percent of GDP (or the 30-year fore- cast that shows revenues becoming an even bigger burden). In other words, a substantial tax cut is needed to keep the tax burden from climbing well above the long-run average. Furman’s slippery use of data is disappointing, but it’s also inexplicable. He could have offered some ef- fective and honest argu- ments against tax cuts, most notably that reducing revenues is problematical since Trump and Republi- cans seem unwilling to re- strain the growth of govern- ment spending. Let’s look at a few other interesting passages from his column. I found this sentence to be amusing since he’s basi- cally admitting that Obam- anomics was a failure: “Growth has been too low for too long and raising it should be a top priority.” He then asserts that tax cuts never pay for them- selves. I would have agreed if he wrote “almost never,” or if he wrote that the new GOP package won’t pay for itself. But his doctrinaire state- ment is belied by data from the United States, Canada, and United Kingdom. “...no serious analyst has ever claimed that tax cuts generate enough growth to pay for themselves.” By the way, Furman openly admits the Laffer Curve is real. And if the Joint Committee on Taxation shows revenue feedback of 20-30 percent when scoring the Republican plan, that will represent huge progress. “Estimates by a wide range of economists and the nonpartisan scorekeepers at the Joint Committee on Tax- ation have found that the additional growth associ- ated with well-designed tax reform may offset 20 per- cent to 30 percent of the gross cost of tax cuts—not counting dynamic feedback.” Last but not least, he comes out of the tax-in- crease closet by embracing the truly awful Simpson- Bowles budget plan. “The economy needs a fiscal plan that combines an increase in revenues with entitlement reforms that protect the poor a la Simpson-Bowles.” As I’ve explained be- fore, Simpson-Bowles is best characterized as lots of new revenue on the tax side and plenty of gim- micky provisions on the spending side (rather than genuine reform). P.S. Even though Repub- licans are not serious about controlling spending and even though I don’t think the GOP tax cut will come any- where close to “paying for itself,” the tax cuts are still a good idea. Both to gen- erate growth and also be- cause reduced tax receipts hopefully will translate into pressure to control spending at some point. Daniel J. Mitchell, chairman of the Center for Freedom and Prosperity, is on the Editorial Board of the Cayman Financial Review. DANIEL J. MITCHELL DANIEL J. MITCHELL PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will find their own way”The islands’ most-trusted news source 5 CAYMAN COMPASS • FRIDAY OCTOBER 6, 2017 www.rbcroyalbank.com/caribbean ® / ™ Trademar ks of Royal Bank of Canada . Used under licence . RBC says Thank You ... To the many Red Cross supporters and friends, thank you for participating in the 20th Anniversary RBC/CIRC Golf Tournament. In celebration of RBC’s 20th year of partnership with the Red Cross, RBC and the Cayman community together raised $20,000 during our “20 for 20” Campaign. A BIG thank you is extended to all RBC and Red Cross Volunteers! 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Thompson’s BCQS Rentals Book Nook Britcay Broadhurst LLC Burger King CIBC FirstCaribbean CITCO Conyers Dill & Pearman Davenport Development Eats Café Fidelity Kensington Management6 LOCAL NEWS FRIDAY OCTOBER 6, 2017 • CAYMAN COMPASS Inmate in Cayman to be returned to Jamaica to face murder charge CAROL WINKER cwinker@pinnaclemedialtd.com A man wanted in Jamaica in connection with a De- cember 2016 killing is to be escorted from the Cayman Is- lands after his current prison sentences expire on Oct. 11. O’Brian Odane (O’Dane) Ellis, 29, appeared in Sum- mary Court on Wednesday to be sentenced for posses- sion of ganja. Crown counsel Kenneth Ferguson asked for “a certain sentence in accor- dance with his standing.” Mr. Ferguson explained that Ellis was serving a sen- tence for illegal landing and it would expire on Oct. 11. Ellis was wanted in Jamaica on a count of murder, Mr. Ferguson told Magistrate Grace Donalds. He said the ganja charge arose from a raid at a Windsor Park premises by po- lice and customs officers on Aug. 18. The illegal vegetable matter was found in Ellis’s possession; total weight was 565 grams or 19.93 ounces. Mr. Ferguson said police and immigration officials wanted Ellis to leave Cayman as soon as possible, and ar- rangements had been made to escort him out of the ju- risdiction to hand him over to Jamaican authorities. He hoped the magistrate would take these facts into consid- eration in passing sentence. Mr. Ferguson added that Ellis had been of assistance to Cayman authorities in other matters, but he would not say more than that. Defense attorney Jona- thon Hughes said Ellis was not in any position to pay a financial penalty. He agreed that a short custodial sen- tence would be appropriate under the circumstances. The magistrate imposed a term of five days and ordered it to run concurrently with the sentence for illegal landing. Ellis is wanted in Jamaica in connection with the Dec. 6, 2016 killing of Steadman Sterling. He had sought a declara- tion from the Cayman Islands Grand Court that an order to return to Jamaica would vio- late his right to life as well as violate prohibitions against torture and inhumane treat- ment as set out in Cayman’s 2009 Constitution Order. The Grand Court heard the matter on Sept. 12 but made no finding. The judge ad- journed the application and permitted the applicant to file it at a later date if he wished. Crackdown on crime in eastern districts Last weekend, the Royal Cayman Islands Police Ser- vice conducted operations to target illegal activities pointed out by residents during a community meeting. Officers in the eastern dis- tricts were targeting gam- bling and the use of drugs, among other crimes that lead to fights and other public disturbances. Police and Customs and Immigration officers con- ducted a search of a resi- dence in Manse Road last Friday that resulted in the recovery of drug utensils and the arrest of a 35-year- old Bodden Town man on drug-related offenses. The man is currently on police bail. Officers conducting foot patrols around 6:30 that same evening in the area of the Bodden Town Public Beach searched a 47-year- old George Town man along with his vehicle. They found a machete and arrested the man for possession of an of- fensive weapon. That man is also currently on police bail, police said. Eastern district officers also conducted a search of a residence on Northward Road just after 5 a.m. Sunday that led to the arrest of a 33-year-old man on an immi- gration-related offense. That man was deported to Ja- maica on Monday morning. “We will continue opera- tions like these to target low- level criminal activity that can be a nuisance for law- abiding residents and also lead to more dangerous be- havior,” said Winsome Pren- dergast, area commander for the eastern districts. “Drug and gambling ac- tivities are just the first of the many priority areas we will be concentrating on in order to address concerns raised by our communities in Bodden Town, East End and North Side.” MAN CHARGED WITH CAUSING GRIEVOUS BODILY HARM CAROL WINKER cwinker@pinnaclemedialtd.com Charges of assault causing grievous bodily harm and actual bodily harm were brought against Benjamin Michael Bates, 28, in Summary Court on Wednesday afternoon. He is accused of hit- ting another man in the face causing serious inju- ries on Sept. 30, outside a residence in West Bay. A po- lice report of the incident in- dicated that both men had been at a party. The victim/complainant is attorney Alex Davies. He was flown to Miami via air ambu- lance for treatment on Oct. 2. A colleague confirmed that Mr. Davies was undergoing surgery on Wednesday, Oct. 4. Defense attorney Jona- thon Hughes advised that he did not yet have any pa- pers in the case and Mag- istrate Valdis Foldats granted bail after the Crown did not object. Bates was also charged with possession of ganja at his George Town resi- dence, plus possession of ganja utensils, including two pipes and a grinder. A related charge of failing to provide a specimen of urine for testing was also laid. Bail conditions included surrender of travel docu- ments and a requirement to live and sleep at a speci- fied residence. The matter was scheduled for mention again on Oct. 17.7 LOCAL NEWS CAYMAN COMPASS • FRIDAY OCTOBER 6, 2017 as Cayman Islands Fashion Week, is quoted as saying she is happy to promote her home country. “Being from the Cayman Islands, my Caymanian roots are extremely important to me,” Ms. Byers said in the release. “Whether looking to celebrate a special anniver- sary, occasion or plan a wed- ding, I promise that couples will fall head over heels for the Cayman Islands.” Ms. Byers has gained at- tention as both an actor and an activist. Her upbringing as the multiracial daughter of two deaf parents made her a target for incessant bullying while growing up, she has said. Her book “I am Enough” addresses the bullying issue, and Ms. Byers has said she wrote it with the idea of em- powering young girls. She volunteers with the nonprofit anti-bullying organization Saving Our Daughters. After graduating from the University of South Florida, Tampa, and earning a mas- ter’s degree at the Univer- sity of California, Irvine, Ms. Byers pursued an acting ca- reer in New York. Stage roles eventually led to an audition for “Empire,” which has been a solid hit for Fox Television. She recently appeared in the indie thriller “Bent” oppo- site Karl Urban, Sofia Vergara and Andy Garcia. CONTINUED FROM PAGE 1 Tourism chiefs hope love will lure visitors This image of Grace and Trai Byers relaxing on a boat in Cayman is among several featuring the two ‘Empire’ stars to promote the Cayman Islands as a tourism destination. - PHOTO: REBECCA DAVIDSON, VIA DEPARTMENT OF TOURISM WHITE HOUSE, NRA, CONGRESS AGREE ON REGULATION WASHINGTON (AP) – The National Rifle Associa- tion announced its support Thursday for regulating “bump stocks,” devices that can effectively convert semiautomatic rifles into fully automated weapons and that were apparently used in the Las Vegas mas- sacre to lethal effect. It was a surprising shift for the leading gun industry group, which in recent years has resolutely opposed any gun regulations. Immediately afterward the White House, too, said it was open to such a change. The NRA announcement followed comments from leading congressional Re- publicans including House Speaker Paul Ryan that Congress should take a look at the devices, which were little-known even to gun enthusiasts prior to Sun- day’s bloodbath. A gunman pumped bul- lets from a casino high-rise into a crowd of concert- goers below, killing 59 and wounding hundreds, ap- parently using legal “bump stocks” to increase firing speed from his semi-auto- matic weapons. “The National Rifle As- sociation is calling on the Bureau of Alcohol, To- bacco, Firearms and Explo- sives (BATFE) to immedi- ately review whether these devices comply with fed- eral law,” the NRA said in a statement. “The NRA be- lieves that devices designed to allow semi-automatic ri- fles to function like fully automatic rifles should be subject to additional regulations.” White House spokes- woman Sarah Huckabee Sanders said in response, “We welcome that and a conversation on that …. It’s something we’re very open to. It’s something we want to be part of the conversa- tion on going forward.” President Donald Trump had discussed the issue with lawmakers on the way back from visiting Las Vegas on Wednesday, according to Rep. Mark Amodei, Republican from Nevada, who traveled with the president aboard Air Force One. “Bump stocks” origi- nally were intended to help people with limited hand mobility fire a semi- automatic without the in- dividual trigger pulls re- quired. They can fit over the rear shoulder-stock as- sembly on a semiautomatic rifle and with applied pres- sure cause the weapon to fire continuously, in- creasing the rate from be- tween 45 and 60 rounds per minute to between 400 and 800 rounds per minute, ac- cording to the office of Sen. Dianne Feinstein, Demo- crat from California, who introduced legislation this week to ban them. The government gave its seal of approval to selling the devices in 2010 after concluding that they did not violate federal law. The endorsement from the NRA and congressional Republicans for a change in law or policy to regu- late guns, however narrow, marked a shift. Inaction has been the norm fol- lowing other mass shoot- ings, including the Sandy Hook, Connecticut, mas- sacre of schoolchildren five years ago, last year’s blood- bath at the Pulse night- club in Florida, and a base- ball field shooting this year in which House Majority Whip Steve Scalise came close to death. The government gave its seal of approval to selling the devices in 2010 after concluding that they did not violate federal law.The islands’ most-trusted news source 8 FRIDAY OCTOBER 6, 2017 • CAYMAN COMPASS Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mrs. Rosa Felita Solomon affectionately known as “Miss Rosa” of Breakers, who passed away on Saturday, September 23, 2017. A Thanksgiving Service will be held on Sunday, October 8, 2017 at 2:00p.m. at Savannah Seventh-day Adventist Church, 1631 Shamrock Road. Viewing will be from 1:00-1:45p.m. Interment follows at New Pease Bay Cemetery. Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mr. Azzan Jerome Sherieff of Northside,who passed away on Sunday, September 17, 2017. A Thanksgiving Service will be held on Saturday, October 7, 2017 at 10:00a.m. at Craddock Ebanks Civic Centre, Northside. Viewing will be from 9:00-9:45a.m. Interment follows at Old Man Bay Cemetery. We have been asked to announce the passing of Mrs. Dellia Juanita Seymour, of Prospect, George Town, who passed away on Wednesday, September 27, 2017. A Thanksgiving Service will be held on Sunday, October 8, 2017 at 2:00p.m at First Assembly of God, 195 Old Crewe Road, George Town. Interment follows at Prospect Cemetery. In lieu of owers, donations can be made to Meals on Wheels. Condolences can be registered at: www.churchillsfuneralhome.com Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mr. James Curtis Ramoon affectionately known as “Baba” and “Dashy” of George Town, who passed away on Saturday, September 16, 2017. A Thanksgiving Service will take place on Saturday, October 7, 2017 at 3:30p.m. at Church of God Universal, Walkers Road. Viewing will be from 2:30-3:15p.m. Interment follows at Dixie Cemetery. the blacklist. These were the third such face-to-face meet- ings with EU officials on that topic since April 2016, the premier said, in addi- tion to more frequent up- dates provided via written correspondence. EU officials told Cayman representatives during these meetings that all countries will be informed of the out- come of the EU’s analysis and given the opportunity to reply before the publi- cation of the blacklist. The date of the last meeting of the 28 EU finance ministers for 2017 is Dec. 5, and Min- istry of Finance officials ex- pect that the list will be published on that day or shortly afterward. “Our objective is to assist EU ministers of finance in their understanding of Cay- man’s [tax] compliance ef- forts prior to the EU’s De- cember 2017 announcement of the jurisdictions that it considers to be non-com- pliant with global tax good governance standards,” Mr. McLaughlin said. Finance Minister Tara Rivers said that during the recent meetings in Brus- sels, the European ministers “lauded our efforts as front- runner for implementing and shaping international trans- parency standards.” “During every meeting, EU officials praised our engage- ment and active pursuit of dialogue,” Ms. Rivers said. Some in Cayman’s finan- cial services industry have questioned the EU’s political, rather than practical or op- erational, motives in issuing this latest list and wonder whether Cayman’s govern- ment is taking a firm enough stance to protect its most profitable business sector. “You cannot appease an alligator by giving it just one of your legs,” said Anthony Travers, senior partner at the Travers Thorp Alberga law firm. “You will end up legless, very possibly worse. “If there is any sugges- tion that the Cayman Islands is ‘blacklisted’ by the EU, the Cayman Islands government should reassess the impor- tance of the EU to the Cayman Islands and, particularly, in the light of Brexit. In fact, less than 8 percent of investment flows into Cayman Islands hedge funds originate from the EU,” Mr. Travers said. “The Cayman Islands would do better to re- peal the transparency arrange- ments with EU jurisdictions, repeal the Common Reporting Standard and focus on trans- actional flows from the rest of the world without further interference.” What is the blacklist? The proposed EU blacklist is for countries or territories that the European Commis- sion does not consider to be implementing proper tax gov- ernance structures. Premier McLaughlin said there are three general areas that European com- mittee members are looking into during their evaluation of jurisdictional tax systems. These are compliance with measures aimed to prevent tax base “erosion” when com- panies shift profits from their home country to lower or no- tax jurisdictions; general ad- herence to tax transparency practices; and whether the jurisdictions operate a “fair” tax system – according to EU standards. The last point is where Cayman’s financial services industry and the local gov- ernment have some concerns. According to an EU public affairs press release from November 2016: “The EU’s ECOFIN Council [made up of the EU’s 28 finance ministers] agreed that to avoid being on the future EU tax haven blacklist, [non-EU] countries would have to comply with the international tax trans- parency criteria, fair taxa- tion – including not facili- tating offshore structures or arrangements aimed at at- tracting profits that do not reflect real economic activity in the jurisdiction ….” Mr. McLaughlin said, from Cayman’s perspective, the definition of a fair tax system means acceptance that doing business in another country does not relieve a person or company from tax obliga- tions to their home country. In addition, the country in which that individual does business would be expected to share information with the person’s home country, to assist in the administra- tion of that jurisdiction’s tax system, he said. Direct taxation The Cayman Islands has never had a direct tax system; however, the local government points out that the current system of indirect taxation brings in the equiv- alent of about 28 percent of the territory’s gross do- mestic product. That is com- parable to other First World jurisdictions that have di- rect taxation. Cayman is participating in the Organisation for Eco- nomic Co-operation and De- velopment’s Base Erosion and Profit Sharing, or BEPS, tax initiative. This effort seeks to prevent taxable cap- ital from leaving the juris- diction in which the EU con- siders it should be paid, so it can be transferred to other lower tax or no-tax countries. Cayman was also an early signatory to the Common Reporting Standard for tax transparency as well as the Foreign Accounts Tax Com- pliance Act in the U.S. “Cayman’s globally re- sponsible tax regime meets or exceeds the revenue tar- gets used by other leading countries around the world,” Mr. Scott said. “It’s a taxa- tion revenue raising system that works well for our juris- diction and very adequately funds our government oper- ations and keeps our debt- to-GDP ratio modest. This responsible approach to taxation is central to the Cayman model and a dis- tinguishing feature of our jurisdiction.” Second attempt The Cayman Islands and a number of other offshore fi- nancial services centers were briefly blacklisted by the EU in a similar tax transparency initiative, the results of which were announced in mid-2015. However, that listing was walked back when the OECD criticized the EU for targeting offshore centers that already had tax information ex- change agreements in place as part of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes. “A number of countries identified in the EU exercise are either fully or largely com- pliant and have committed to [automatic exchange of in- formation], sometimes even as early adopters,” according to an email the OECD sent to Global Forum members at the time. The 2015 blacklisting was widely criticized for a lack of transparent method- ology and the omission of large EU-member states. Mr. Travers said those who have been following the EU machinations regarding offshore financial centers over the past three decades were “not at all surprised” at the suggestion that Cayman might appear on the latest fi- nancial center blacklist. “[The European Union] will doubtless label it using the pejorative term, ‘tax haven black list,’” Mr. Travers said in response to Cayman Compass questions about the issue this week. “No doubt it was pru- dent for the Cayman Islands government over nearly 20 years to honestly and fairly engage in the process; in- deed, given the fact that the Cayman Islands now has globally leading standards of transparency through the mechanisms of FATCA, the Common Reporting Standard, and the Tax Information Ex- change Agreements (notably with the most important Eu- ropean Union jurisdictions) and has signed up to the first stage of the OECD Base Ero- sion and Profit Shifting Ini- tiative which requires yet fur- ther reporting requirements, it cannot be legitimately crit- icized for its efforts,” Mr. Travers said. “But it can be criticized for its naiveté in dealing with the EU and the OECD. Unfortunately, the pro- gram of appeasement was bound to fail insofar as the EU was concerned and simply because the EU does not and has never had the slightest in- tention of allowing tax neu- tral jurisdictions to exist. “In the light of the fore- going transparency initia- tives, any blacklisting by the EU should cause a radical re- assessment by the Cayman Islands government of its co- operation to date, since it is clear that there is no effec- tive quid pro quo whatsoever and that the Cayman Islands is not being treated honestly and fairly by the OECD. “The OECD have funda- mentally misunderstood the importance and integrity of the role of the Cayman Is- lands financial services In- dustry from the outset and deliberately so. We say tax is paid in the jurisdictions where profits are made, in- deed, a cornerstone of the BEPS initiative. But for off- shore financial centers the OECD applies a blatant and discriminatory double stan- dard. The Harmful Tax Com- petition Initiative of 1998 and the Base Erosion and Profit Shifting Initiatives contain within them concepts which are artificial and which are specifically designed to dis- criminate against jurisdic- tions like the Cayman Islands in an arbitrary and unjusti- fiable manner.” European Union ‘blacklist’ decision due in December CONTINUED FROM PAGE 1 The European Union flag flies outside EU headquarters in Brussels. - PHOTO: APThe islands’ most-trusted news source 9 CAYMAN COMPASS • FRIDAY OCTOBER 6, 2017 nsurance Managers Association of Cayman IMAC EDUCATIONAL SCHOLARSHIP FOUNDATION FORMED IN 1994 RAISED OVER $3.4 MILLION ASSISTED 42 STUDENTS CONGRATULATIONS TO OUR 2017 RECIPIENTS MYA SCOTCHMAN Psychology at Plymouth University JULIAN JERVIS Biology at George Washington University ASHLI WELCOME Veterinary Medicine at Szent Istvan University in Budapest LESHONTAE MISSICK Medicine at International American University in St. Lucia MARTYNNA BERRY Communication and Media Studies at Carleton University AMY THOMPSON Hospitality Management at Portsmouth University ALEXANDRA ARTUCH English Literature at the University of East Anglia SHANTELLE ELLIS Tourism Management at University College Birmingham WHITNEY GENERAL Medicine at Bristol University KATLEN BUSH English Education at Indiana Wesleyan University THE FUND IS CURRENTLY SUPPORTING Isaiah Robinson, Jake Bennett, Lacee Barnes, Katherine Tatum ISAIAH ROBINSON Computer Science, Cardi University JAKE BENNETT Aviation Management, Florida Institute of Technology LACEE BARNES Marketing, University of Texas at San Antonio KATHERINE TATUM Education Studies (Psychology), York UniversityNext >