By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
A TOP Value Added Tax (VAT) proponent’s failure to pay tens of thousands in taxes shows why the government should debate tax reform with residents before imposing a new tax on them, FNM Chairman Darron Cash said yesterday.
His comments came after a local newspaper reported that Ishmael Lightbourne, the government’s VAT coordinator, owes &110,083 in taxes on a commercial property he owns. That revelation came a week after it was reported that Mr Lightbourne owes $7,743 in real property taxes on his residence.
Mr Cash said he stands by his previous comments calling for Mr Lightbourne to either resign or be fired as VAT co-ordinator for failing to pay his taxes.
“The vast majority of Bahamians share the belief that something is inherently wrong when the country’s principal spokesperson on VAT does not pay his taxes,” he said.
He added that the Prime Minister should use this controversy to show strong leadership.
“What has become clearly obvious is that this issue is bigger than any one individual and Mr Lightbourne’s personal issues notwithstanding, the issue has become clearly more than about him,” he said.
“It is also an issue that cries out for leadership by Prime Minister Christie. The revelations about Lightbourne’s challenges underscores why a broader debate on tax reform is necessary.”
He continued: “Shane Gibson’s own admission that there are many persons who owe real property taxes and have not paid because they are not able to pay or have clearly opted not to pay, makes the case that the country needs to have a more meaningful discussion about taxation.”
“Why is it that people have not been able to pay? Is it a fact that the rates are just so high that people cannot afford to pay? And what is it about commercial tax that people who own properties are not able to pay them or pay them without penalties ever being applied? The Prime Minister usurped his responsibilities by not acknowledging the challenges or by trying to wash his hand of this problem.”
Comments
TalRussell 10 years, 8 months ago
Good that Comrade leader Minnis has finally hired a script writer or assigned Dr. Daune or some other red other than Chairman Darron heself, to have wrote all these most worthy points for consideration by the PM.
jackbnimble 10 years, 8 months ago
Mr. Cash is an intelligent man, Tal, so he likely put this press release together without assistance. The point should not be missed, however, that we need MAJOR tax collection reform. Why this Government insists on moving ahead in implementing a new tax when it is daily being brought to the light the overwhelming flaws in the current tax collection system, is beyond me. Should this time not be better spent in finding an effective way to collect the current outstanding taxes - Real Property Taxes being just one of them? Half of $550 million is about what they were proposing to collect from VAT. I mean the answer is is right in front of them. So how they choose to overlook it and decide to add a new tax is mind boggling - or am I missing something? #justsayin'
TalRussell 10 years, 8 months ago
Comrade Jackbnimble even intelligent reds are pretty damn good at pretend to not know anything at all about things they were responsible for while in office. Like the billions they ran up in debt. Like the same property taxes collection they ignored go after to collect, that is unless it suited their political attack agenda cause the good lord knows they could get real nasty against whom they selected to target.
Honestman 10 years, 8 months ago
Most western governments ran up substantial debt following the Great Recession. Without substantial capital spending the Bahamian economy would have ground to a halt and the FNM would have been criticized for not doing enough to project jobs. I'm not saying that the FNM necessarily spent all the country's money totally wisely but at least we can point to what they did with the money. What has the PLP to show for the $1 billion it has spent since coming to power?
birdiestrachan 10 years, 8 months ago
Mr. Cash the time for debates is running out. Mr. Lightbourne must have owed these taxes for many years. it did not happen over night. It is time to move forward now for the good of the Bahamas and the Bahamian people. This is not a FNM issue or a PLP issue It is a Bahamian issue. that will affect the whole Bahamas. It is selfish to continue in this vain, when you and your party know what the end results will be. down grades and the Bahamian dollar no longer on par with the US dollar. ,
The_Oracle 10 years, 8 months ago
Tal, I would love to see you step outside of the redshirt/yellow shirt game you have been trapped into, but suffice to say your talent is wasted. Our problem seems to be bill avoidance to the point the bill now due is unpayable. (without serious and de-stabilizing liquidation) so, where from here? We have already seen what, 50% debt forgiveness for those who came forth acknowledging past due debt, no doubt some are holding out for 75% forgiveness, maybe even 100%, where do we draw the line? If the idiots in Finance had a clue we could figure our how many years we could go back without undue stress! First is disclosure, public and private sector. What do they call it? Gazette? That's it, we haven't seen one of them in a decade or so, Gazette the names, lists of overdue. That'll get the ball rolling!
proudloudandfnm 10 years, 8 months ago
Tell ya one thing too. If they really want VAT to be taken seriously this gives Perry an excellent opportunity. Prosecute this man to show us VAT will be collected without worry on connections or wealth. Let him walk and I swear I not pay a dime in VAT or RPT or duty ever again....
Observer 10 years, 8 months ago
The verb usurp means to take illegally or by force. What does it mean in the published article attached?
sheeprunner12 10 years, 8 months ago
OBSERVER..............Perry aka "Trinity" was impersonating one of his three caricatures at the time when the remark was made
John 10 years, 8 months ago
I think I would NOT like to be operating a business when VAT is imposed. Just remembering how difficult it use to be to run a small business. Sometimes one would order goods from the US and they would have to sit on the dock for weeks, even months before there was sufficient funds to pay the duties. Then you had to pay business license fees, national insurance, BEC, Water and Sewerage, Batelco...all to government before you paid your other expenses like salaries or buy supplies. Now to be responsible for VAT. Yes, they say the consumer will pay it but the business has to be responsible for collecting it and paying it to government. It is not always that a business does not want to pay taxes, but when the company is operating at a loss, it is easy to accumulate tax arrears, and in the case of VAT the penalites are harsh. So at the end of the day you may not only lose your business but also your rights as a citizen and your freedom. Has anyone did an account of the number of Bahamian businesses that have closed since the recession started in 2008? Many properties that are in tax arrears are also in foreclosure. The tax does not stop because the property is not occupied.
ohdrap4 10 years, 8 months ago
Here is the deal, if business men will be tax collectors for the govt, I will be unpaid tax inspector for the govt.
I will only patronize businesses who can show they are remitting tax to the govt.
It will not be hard to identify, because most likeley they will be owned by persons on the other side of the political war.
should i suspect the business is owned by "The Boys", I will not buy from them.
sheeprunner12 10 years, 8 months ago
WHY ARE WE TALKING ABOUT TAX REFORM WHEN WE DONT COLLECT THE TAXES THAT ARE MANDATED BY LAW??????????????????????? forget WTO
ONE TAX THAT SHOULD BE REFORMED IS REAL PROPERTY TAX. EVERYONE SHOULD PAY IT............... ONE EVERY MAJOR ISLAND. THE PERCENT SHOULD BE GRADUATED BY $500,000 INTERVALS e.g. Under 100,000, up to 500,000, OVER 1 MILLION etc.
IF THE GOVT JUST PASS THIS GIS BILL, THEN USE IT TO FIND & TAX PROPERTIES
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