The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value’s owner has voiced optimism that “$1.5m relief is now in sight” after the recent appointment of the VAT Appeals Commission chairman.

Speaking after Ernie Wallace’s recent swearing-in, Rupert Roberts expressed hope that the Commission would start to address multiple disputes and concerns that have left merchants uncertain as to the true extent of their tax liabilities.

Revealing that his business is embroiled in one such dispute, Mr Roberts said the Department of Inland Revenue (DIR) was insistent that Super Value pay the 12 percent VAT on goods and other items it alleged it “sold” to its affiliate Quality Supermarkets chain.

Mr Roberts, who owns both brands, denied that his affiliates sold to each other. And he questioned how the DIR could expect his supermarket chain to pay the 12 percent levy without being able to recover it when VAT was supposed to borne by the end-consumer.

Lamenting the failure of both the former Christie administration and current government in not establishing the VAT dispute resolution infrastructure sooner, Mr Roberts called for his and other cases to now be addressed “speedily” so all businesses could be “put on the right track” and further taxation concerns eliminated.

“The merchant community is very happy to see that happen,” Mr Roberts told Tribune Business of Mr Wallace’s appointment. “The former government didn’t do it, and the present government has been promising to do that for a long time.

“Even a year-and-a-half ago, at a Chamber meeting, Marlon Johnson [acting financial secretary] made it sound that there were hundreds of cases waiting to be heard.

“We’re [Super Value] in there as well. We’re one. I hope they do it speedily so they can put us on track and get us going doing it right, and not having any disputes with them.”

He added: “That’s the problem with VAT now. There’s no resolution. The merchant community thinks the law says this, they’re [government and DIR] saying that, and we need someone to define the law and get that going.

“The merchant community will have to make the necessary adjustments if they’re right, and if we’re right the VAT Unit and DIR will have to make the changes.

“We appreciate and are glad that it’s [the Commission] here but it didn’t come soon enough. It’s surprising that the PLP government that introduced VAT didn’t do it, and it took so long for the existing government to do it.”

VAT is now in its fifth calendar year of being levied, and the Act that brought it into effect mandated that such an Appeals Commission be established to hear and determine disputes over whether the tax was due and how much.

Its delayed creation has resulted in a backlog of several key VAT-related disputes, some of which have existed for months, undermining private sector confidence and forcing businesses to set aside thousands of dollars to cover potential liabilities.

Mr Roberts said he and others were suggesting potential Appeals Commission appointees to the Government “up until a month ago”, just prior to Mr Wallace’s swearing-in, in a bid to move the process forward.

“It’s a $1.5m issue,” the Super Value chief told Tribune Business of the supermarket chain’s matter. “It’s a worrisome thing, because it’s not only the issue at the moment; it’s ongoing if not resolved and can result….

“It’s just worrisome that the merchants can pay money in VAT and not recover it. It’s a consumer tax, and I don’t see how they can say Quality Supermarket is buying from Super Value and then charge them 12 percent.

“That’s the issue. We don’t sell Quality anything but they say we do. Relief is now in sight,” Mr Roberts continued. “We changed the method.

“We couldn’t continue with something where we don’t get back taxes from the public to give to the Government. We can’t pay it to the Government and not get it back. It’s an impossible liability and burden. We can’t do it.

“I would have to sell, buy out Quality Supermarkets. We couldn’t go on that way. If it’s their way, I have to change the corporate structure; organizational structure.”

Expressing confidence that the VAT Appeals Commission would see the situation in his and Super Value’s favour, Mr Roberts added: “We know there’s no way that VAT was designed so the merchants would pay VAT and not get it back.

“This is not what we agreed on. Relief is now in sight.”