The Tribune

BY NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Tax Coalition co-chair yesterday said the implementation of a new taxation system in 2015 was “totally doable” given the right collaboration between government, the public and private sector, reiterating that tax reform without fiscal reform would “only address the symptom and not the core issues”.

Robert Myers told the Rotary Club of West Nassau that “the timing must be right” as it relates to the implementation of a new taxation system, and in the simplest possible form. New Zealand tax expert Don Brash recently suggested that the Government implement VAT on January 1, 2015, at the earliest or as late as April 1, 2015.

“It’s totally doable if you get the right collaboration from the private sector, the public and the Government. I think it’s doable,” said Mr Myers.

“I think that we have to work as quickly as humanely possible. The problem isn’t going away. Nobody benefits with delaying. We need to just have the right timing to do it, analyse the imperial data and decide what is the right tax and the right means of implementing that tax in its simplest form as possible.”

Mr Myers reiterated that fiscal reform must run parallel to the Government’s tax reform efforts. “It’s not just about tax reform. Tax reform alone will not cure our problems. Fiscal reform has to has to be part of that,” he explained.

“Compliance has to come up. There has to be accountability, efficiency in government, cost cutting, budget control, following international standards in accounting. All of these things have to go side by side with any tax reform. If you do tax reform without fiscal reform you’re only addressing the symptom.

“Compliance is obviously a major concern. If the compliance for existing taxes is below 50 per cent you have to wonder if compliance for VAT will be any better. It is a somewhat more policing tax if everybody behaves, but obviously that’s a concern.”

Mr Myers said there was also concern over the complexity of a VAT system. “The more exemptions you have, the more difficult it is to file and for the Government to track,” he added.

“It’s not just complexity for the private sector but for the Government side as well. The Ministry of Finance has to deal with it. It could be very, very complex to administer and manage. The more cost to administer, the more cost to businesses and the Government. You have to make it as simple as possible and have as wide a tax base as possible.”

Mr Myers said the Tax Coalition was looking to have its report in to the Government by May 15.