The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The National Insurance Board’s (NIB) compliance chief yesterday warned tax and contribution defaulters that they will be “hard pressed” to win Government contracts, due to improved collaboration between its key agencies.

Stephen Thompson told Tribune Business that better inter-departmental links would prevent companies being able to “play one agency off against another” and evade their lawful contributions to NIB and the Government.

Speaking on the social security system’s planned 2016 drive for greater compliance, Mr Thompson warned defaulters they would encounter difficulties in obtaining the Tax Compliance Certificate required before companies can bid on Government contracts worth $10,000 or more.

“For employers wanting a Tax Compliance Certificate, and anyone wanting to do business with the Government over the prescribed amount, they will have to get a Letter of Good Standing [from NIB],” Mr Thompson told Tribune Business.

“We also want to make the point that we’re forging closer collaboration with Government agencies - Road Traffic, Immigration, Customs and the Business Licence Office, which is now part of the Department of Inland Revenue.

“We’re trying to avoid any situation where people play one department against anther, and the right hand is not working with the left hand,” he explained.

“Anyone looking to do business with a Government agency, if they have any outstanding matters with another, they will be hard pressed to do so.”

Mr Thompson, acknowledging that Bahamas-based employers owe NIB a multi-million dollar sum in past due contributions on behalf of their employees, indicated that the social security system will also benefit from the Government’s drive to eradicate tax compliance loopholes.

Devices such as the Tax Compliance Certificate will act as leverage to force employers who are delinquent with NIB to either settle their arrears or enter into agreed payment plans before they can bid on government contracts.

Mr Thompson, meanwhile, urged Bahamian workers to constantly check with NIB - either by coming to its head office or electronically - to ensure their employer was current with contributions made on their behalf.

“It’s a nightmare when persons come here and they do not know their employer has not paid contributions, because they cannot make a claim,” he told Tribune Business.

“By that time, the business may have become inoperable or left the country. It’s very important to make inquiries when you are working. I hear nightmare stories every day.”

Mr Thompson added that employers in arrears with NIB were prohibited by law from making “retroactive” deductions from employees’ salaries to pay off outstanding amounts that were past due.

“We will be prosecuting things like that. We feel strongly that it should not happen,” he said, given that the NIB Act calls for salary deductions to be made prior to the worker receiving payment.