The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE private sector plans to soon meet the Government over proposals for "staggering" Business Licence renewals, amid fresh fears over the January 31 deadline's "feasibility".

Edison Sumner, the Bahamas Chamber of Commerce's chief executive, yesterday told Tribune Business that the organisation plans to tackle "head on" the annual concerns that always emerge in the run-up to the filing deadline.

He said the Chamber was currently exploring "the feasibility and viability" of spreading out the Business Licence renewal process in a bid to ease the strain and anxiety it places on businesses and their accountants to certify key financial data within a month of the financial year-end for many.

Talks with the Minnis administration are planned for "the coming days", amid concerns that the bureaucratic "backlog" at numerous government agencies - particularly the National Insurance Board (NIB) and Department of Environmental Services (DEHS) - will prevent many companies from providing certifications required to support their Business Licence renewals by January 31. "One of the things we are looking at in discussions under our purview is the feasibility and viability of staggering Business Licence renewals," Mr Sumner told Tribune Business, describing the current deadline as "a bit tight for many businesses".

He said it was especially problematic for retailers and other businesses for whom Christmas is their peak trading season. Such companies were still trying to close holiday transactions, especially those offered on credit, which made it extremely difficult for them to ready financial statements showing their gross turnover for Business Licence purposes.

"We understand that, particularly those in the retail sector, coming off the busiest season of the year are trying to get their financials finished up and closed out," Mr Sumner said.

"Some sales are not complete, as they were made on 30-90 day credit terms. Many of them are having to wrap-up their year-end in December and get records immediately in place to satisfy January 31, which is a bit tight for many businesses.

"We want to see if there is an opportunity for moving that date. A grace period is given, but no one wants to bleed into that period. Having staggered dates for Business Licences to be renewed is a discussion we have begun. It is something we are looking at, and we expect to have those discussions with the Government in the coming days."

Angst over meeting the Business Licence filing deadline has become almost an annual ritual among many in the Bahamian private sector and accounting community, especially since Value-Added Tax (VAT) was introduced on New Year's Day 2015.

This means that monthly and (some) quarterly VAT filers, in addition to submitting their filings and payments for that levy by January 21, have to submit another set of financial statements and paperwork for Business Licence purposes some 10 days later.

And the concerns over bureaucratic overload have been exacerbated by the delays in obtaining necessary 'good standing' confirmations from a host of government agencies.

"We do know there is a significant backlog, whether it is getting Tax Compliance Certificates (TCCs) or Letters of Good Standing [from NIB]," Mr Sumner told Tribune Business. "It's a matter NIB is working feverishly to resolve, and we are hoping to see an improvement in that process very soon. We are hoping to see this process streamlined and automated in times to come. Hopefully we will see it done by next year."

Mr Sumner said business complaints about NIB delays had been coming into the Chamber since last week. These had all been referred to the social security programme, and confirmations that businesses are current with contributions are now starting to be issued.

One Tribune Business source, speaking on condition of anonymity, said NIB contributions for December 2017 are not due for payment until January 31, 2018 - the same day that Business Licence filings are due.

This, they explained, forces companies to pay their December NIB contributions in advance otherwise they will be unable to obtain the 'Letter of Good Standing' needed for Business Licence certification purposes.

The source also confirmed the "backlog" noted by Mr Sumner, saying they were aware of companies and clients that have been waiting two weeks for NIB 'Letters of Good Standing' and similar approvals from the likes of the police and Department of Environmental Health Services (DEHS).

"NIB cannot keep up with the request for 'Letters of Good Standing'," they added. "Many businesses have to get a certificate from the Department of Sanitation. This department cannot keep up with the demand."

Mr Sumner told Tribune Business that the Chamber also wanted to "streamline" the need to file multiple financial statements - one for VAT, another for Business Licences - and consolidate this into one set of figures.

"The whole idea of Business Licence renewals is one of the concerns the private sector has had for a whole, especially with the introduction of VAT in 2015," he said. "There's one set of requirements for VAT filings, and one set of financials for Business Licences.

"This is one of those areas where we need to streamline the process. There is no need, in my view, to be submitting so many different sets of financials. We need to streamline that process so whatever is required is captured in those financial statements, and any agency will be able to use them."

The former Christie administration, in response to private sector complaints, pushed the Business Licence fee payment deadline back to end-March, although filings are still required by January's end on an annual basis.