Editorial: Appropriate

POSTED: 09/23/13 1:01 PM

The former owners of the American University in the Caribbean knew already in 1993 that they were going to leave their campus in Montserrat, it appears from an interview with former AUC-employee Joe Johnson.

It is interesting to note that, apparently, the AUC left Montserrat because of what Johnson describes as “tax-issues.” One could say that the writing was already on the wall by the time the university established itself in Cupecoy.

The tax-deal of the century let the previous owners walk away with their millions while St. Maarten did not receive its fair share: a paltry 2.25 percent in profit tax while the regular rate is 25 percent. It is also a fact that the AUC while it was ruled by the Tien-family ducked wage taxes by paying part of the faculty-salaries through a Cayman-construction.

We understand that Devry Inc. has solved this issue by simply increasing the faculty-salaries to make up the difference. In a business where so much money is going around, that seems to be the appropriate thing to do.

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