The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Tax compliance will greatly improve if the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) is authorised to become the sole business registration centre, its chairman believes.

Gowon Bowe told Tribune Business that while Value-Added Tax (VAT) had received priority attention, the BCCEC as continuing discussions with the Government over the proposal for it to take over the Business Licence/registration process.

With increased private sector tax compliance a key goal post-VAT implementation, Mr Bowe said handing business registration over to the BCCEC would help “expand regulation to ensure only valid businesses get licensed”.

The proposal, if approved by the Government and implemented, would effectively make the private sector self-policing and responsible for its own tax compliance.

It would help, in theory, to crack down on the ‘black economy’ as the BCCEC would only register, and licence, companies that could prove they were compliant with National Insurance, real property and all other corporate taxes.

And it would also relieve the Government from having to oversee the Business Licence process, freeing up resources for deployment elsewhere, while providing the BCCEC with much-needed income to fund private sector projects.

Mr Bowe confirmed to Tribune Business that the BCCEC was continuing discussions with its counterpart body in Suriname over the “framework” required for it to run business registration in the Bahamas.

With improved tax compliance viewed as vital post-VAT, Mr Bowe said a private sector-run business licensing process “can help” achieve this objective.

“If we have centralised registration through the Chamber, we can expand regulation to ensure only valid businesses get licences going forward,” Mr Bowe told Tribune Business.

“With us hopefully becoming the registration centre for business going forward, there’s an element of trust that has to be built up, certainly for the Government to relinquish that role, but are their time and resources better spent administering taxes as opposed to business registration? If they have greater priorities, that may be the best solution for them.”

Mr Bowe acknowledged that having the BCCEC take over the Business Licence/registration process in the Bahamas was a “hallmark” of his predecessor as chairman, Robert Myers.

Mr Myers, in a recent position paper, said handing this responsibility to the BCCEC would provide the private sector with vital income and bring the Bahamas into line with other nations.

“Regularised income through registration fees (to be established) assures both the Government and the BCCEC membership that the BCCEC will provide the required staffing, services and value to its members - and the Government - on an ongoing basis,” Mr Myers wrote.

“It allows the private sector to manage, monitor and police its own sector, and therefore reduces the burden on the Government to do the same. It allows the BCCEC to negotiate, agree and support government policy and/or legislation, thus providing the Government far greater speed and success in the private acceptance of the same.”

Mr Myers said the BCCEC would have to ensure businesses had fully paid all their taxes before being registered, and granted their Business Licence, thus boosting compliance rates.

“Any businesses not complying would be removed from the list and their names sent to the Attorney General’s Office and police to enforce closure of the business,” the ex-BCCEC chairman wrote.

“This removes the political burden from Government of closing businesses and places it in the hands of the private sector, who are most affected by non-compliant businesses and the informal economy.”

Outlining the benefits that will flow from the BCCEC taking over business registration, Mr Myers wrote: “Important funding, like that of workforce development and education, may be properly implemented and managed by the Chamber Institute in conjunction with established associations.

“The BCCEC will be able to bring industry sectors together and establish new associations intent on providing industry training and certification, as well as mentorship programmes. A smarter, well-trained workforce will equate to higher standards and quality for the consumers, a better trained and educated workforce, greater productivity, private sector expansion of businesses, new businesses, more jobs, greater GDP, more taxes paid to government.

“A stronger Chamber will result in greater dialogue between industries working together to improve conditions all around.”

Mr Myers said the spin-offs would also extend to the work permit regime. He added: “A more organised and managed BCCEC will be able to coordinate and cooperate with the Department of Immigration on issues like worker availability, skills bank, work permit approval efficiency and other matters currently being discussed.

“The BCCEC will become part of the solution and not part of the problem for the Government.”