Managing Partner (Castillo Sanchez & Burrell - LLP)

Up until the end of May of this year we were a member firm of Deloitte Touche Tohmatsu but since June 1, we became an Independent Correspondent Firm of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is one of the world’s leading accounting and auditing, management consulting and tax services firms. Its national practices serve multinational and large national enterprises, public institutions, and tens of thousands of fast-growing small businesses. The new name of the firm is now Castillo Sanchez & Burrell – LLP. We are a firm that offers auditing, accounting, tax advice and planning, general business consultancy, corporate, international financial services and a full range of real estate services.

Q-How is the firm structured?
A-I’m the Managing Partner along with two other partners and a staff of 32.

Q1-Is this your main office?
A-Yes. We have another office in Belmopan and one in the Free Zone.

Q-How was growth last year?
A-Our growth has been small but steady. We’re just compiling our figures. This year we expect about 10-15% growth in terms of gross revenue because there’s a lot of competition out there. It’s not an easy business. You have to keep on the leading edge.

Q-Do you think the off shore business in Belize is overbooked or is there space for new companies?
A- I think there’s space because there’s still a lot of potential and I personally would welcome new players who can give high quality service because it will only help the image of the jurisdiction if we get people who are really qualified and experienced.

Q-What is your annual gross income more or less, between 1 million to 5, 5-20, more or less?
A-Between one and 5 million.

Q-Do you have expansion plans?
A-We would love to expand but we’re cautious because in Belize it’s not easy to get qualified people. There’s a shortage of qualified and experienced people and in order to expand you really need to make sure you have the correct people. There tends to be a turn over of people. People come get experience and then they move on. That is experienced by all the firms in Belize because it’s such a small place.

Q-Who are your principal clients?
A- In the area of International Financial Services, (I.F.S.) they’re mostly from the U.S. but we also have from other countries,e.g.Europeans. For the accounting and auditing they’re mostly Belizean companies. We also have a few international companies and foreign investors who come to invest in Belize who need tax planning advice and guidance on doing business in Belize.

Q-What’s the best part of the business for you?
A-If you’re talking about revenue, auditing is our biggest revenue earner. The International Financial Services play a big role too. It’s a significant part of our total revenue as well.

Q-Do you have joint ventures with another off shore company?
A- Not really. We have a strategic alliance with a law firm in the U.S. where we refer clients to each other and we consult with each other.

Q- Tell me about the competition in the off shore business?
A- Well there are lots of small players and two or three big one who dominate the field We have an Association called the Association of Off Shore Practitioners. Through that organisatioin we get together the players, we hold workshops and we discuss the challenges, how to work along with the government and we also discuss the way forward.

The business of International Financial Services (IFS) has definitely been growing since it was first established in 1990. You can tell by the number of International Business Companies (IBC’s)on the register.

Q- Are you aware of the new tax, the General Sales Tax?
A-Yes GST is a 10% Value Added Tax that applies to both goods and services. It replaces the current sales tax of 9% and came into effect on July 1, 2006.

Q-Does your firm enjoy any fiscal incentives?
A-No

Q-Do you want to have any?
A- No. I don’t mind paying my share of taxes as long as others do as well. To begin with, we do not qualify for fiscal incentives. The incentives are set up to attract investors, both local and foreign but in specific areas. We’re in a service line which is fairly lucrative. What I think is that we need to look at the total taxes we pay and maybe some of the taxes need to be reduced or the system needs to be changed. For example we pay Business Tax on our gross revenues. In most countries you pay on your net profits. Our taxes on professionals have been steadily increasing. We used to pay 3% then it went to 4% now it’s 6%. I don’t mind paying taxes but these should be reasonable because we’re making a contribution to the economy via the employment we provide.

Q-Where are the investment opportunities?
A-Well, tourism is one of the main areas. It is growing and we see a lot of people coming to invest in tourism. In the area of I.F.S. there’s room for new firms with expertise and professional ethics. Of course we don’t want to attract just anybody. Then there are investment opportunities in agriculture and light manufacturing because Belize imports too much. The problem is that our consumption patterns are first world. We want all the good things we see on TV but we don’t earn enough foreign exchange to keep that up. So right now we’re suffering from a very high external debt which I’m sure you’ve heard about.

Q-What’s your biggest success?
A- When I look back I’d say being able to establish a respectable firm that has grown and become well established. We’re recognized by all the financial institutions, both local and international.We were able to become a full member firm of a prestigious firm like Deloitte Touche Tohmatsu, from 1991 to this year. However, because the regulatory environment changed so much after the Enron scandal it became very prohibited for very small firms to continue as sole member firms. It is just too expensive in terms of time and money and in the context of Belize many of the rules don’t apply as Belize doesn’t have a stock exchange. So it was no longer beneficial for very small firms like us to continue as a full member firm. However we still have a good relationship with Deloitte as an Independent Correspondent Firm.

Q-What is your biggest obstacle?
A-I would say to train and retain qualified staff because without the qualified staff you can’t give good service. It’s a big obstacle and I guess it will never be totally overcome especially in a small community like Belize. Many people migrate because of high unemployment. Many of our young talented people just go because they can’t find good jobs in Belize.

Q-Why must I choose your company if I’m an international investor?
A- Because we’re a full service reputable professional firm. We have experience in a wide range of services. We even have an in-house attorney which other similar firms do not have. It’s a one-stop. We can take care of all your needs. I myself worked 6 years with the government in the Income Tax Department. We have very strong taxation expertise and we keep on top of all the changes in the law. Also because we have three partners and adequate staff to service our clients.

Q-Is there a message you want to get across to potential investors to Belize?
A- I would say Belize is still growing and developing and certainly there are many opportunities here. We have a lot of positive things going for Belize in spite of our challenges, like all other countries. In the context of Central America Belize is distinct and unique. We’re English speaking. Our laws are based on British law and parliamentary system. We have a strong educational system. We have democratic political institutions, peaceful elections and most important economic and social stability where investors can feel safe.

Our economy is facing some challenges but we have some bright spots on the horizon. We have just discovered oil. There are lots of beautiful natural resource that we’re trying to preserve. The people are friendly and easy to get along with and we have a high level of education. We have a lot of young talented people so Belize is a good place to come and look at the opportunities. We would be very happy to assist any new investor who comes along and needs professional advice.