The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

THE Free National Movement bashed the Davis administration for its impending change to the value added tax reporting deadline, stressing the government continues to place burden on businesses.

Starting July 1, the timeframe in which Bahamian companies with annual turnovers exceeding $5m can file and pay their VAT returns will be 14 days, down from 28 days.

“The government continues to place pitfalls in the way of entrepreneurs and businesses, large and small,” the FNM’s press release said.

“The Prime Minister’s reference to a large taxpayer unit at the Department of Inland Revenue is laughable –– this class of business has always been given focused attention by DIR professionals, given their significance to the overall VAT revenue collected.

“However, the Prime Minister’s continued assault on these entities and, by extension, small businesses is no laughing matter. These entities have lamented the significant increase in cost and the ease of doing business.”

The FNM argued that cutting short the VAT filing time will cause more harm than good.

“With these compressed timelines, many accountants will find it difficult to meet client’s needs, inadvertently causing defaults due to unconsidered due to unconsidered circumstances and multiple client filings,” the press release said. “We must also consider the businesses that rely on outside accounting professionals to accumulate the relevant data to make the filing.

“According to business owners, because of the PLP’s lack of consideration, already struggling businesses will be stretched thin to be able to complete hundreds of journal entries and postings from previous month-much less reconcile with import customs entries, verify account receivable payments, ensure accuracy, balance, file, and pay-all within 14 days.”

The FNM said the Minister of Finance seems to be detached from the harsh realities impacting many small and medium size businesses.

The statement continued: “Ironically this pressure is being placed on the business community as the government continues violate not only the law but also the deadlines relative to public procurement and other acts that mandate timely reports.”

The VAT Amendment Bill 2023, which defines a “large taxpayer” as an entity with annual turnover of $5m or more, stipulates: “A registrant that is a large taxpayer must file with the Comptroller a VAT return in the prescribed form within 14 days after the end of each tax period whether or not tax is payable by the registrant in respect of the period.”