FINANCIAL Secretary Simon Wilson.
By PAVEL BAILEY
Tribune Court Reporter
pbailey@tribunemedia.net
TWO Harbour Island businesses raided last week collectively owe the government about $1.3m in taxes, financial secretary Simon Wilson said yesterday.
“With one of the businesses we (are) investigating, there is an estimated $1m in taxes (owed). The other business, our initial assessment is $300k in taxes,” he said.
“In the case of the two businesses, one business declared $1 in revenue last year and they are making close to a million dollars in revenue. The next business declared $10,000 in revenue and that’s closer to $2m.”
Department of Inland Revenue (DIR) officials conducted an island-wide sweep of companies in Harbour Island last suspected of not being properly licensed, failing to pay VAT and other due taxes, and under-declaring or under-reporting revenues to avoid the full business licence fee and other levies.
Conch & Coconut, which bills itself as a luxury concierge and experiential travel company, and Andre’s Rentals, a golf cart rentals company, were the two businesses raided last week.
Jason Williams, the spokesman for the DIR, said around 30 golf carts, three sea crafts and information from computers were seized from one of the businesses, likely Andre’s Rentals, while 102 cases of Conch & Coconut’s Pink Sands Spirits liquor, 21 bottles of Vodka, boats, cars, two Mercedes vehicles, and three golf carts were secured.
Last year, Mr Wilson revealed that the Revenue Enhancement Unit’s (REU) audits showed 50 per cent of registered companies under analysis were non-compliant with VAT laws.
“When you think of it from a statistical point of view, 50 per cent of persons audited were found to be non-compliant, which is a very, very high ratio,” he said.
“It is a cause for concern. When you think of that, one in every two businesses they’re going to for an audit have not filed or are charging VAT but not remitting the money to government, which shows a high level of non-compliance for that small sample size.
“If that cascades to the full population of VAT registrants, it shows the significance of the problem of non-compliance.”
Comments
ohdrap4 1 year, 7 months ago
And, who accepted documentation for a business with revenue ONE DOLLAR a year. It is ridiculous.
I patronize a take out restaurant, where the payroll would be at least 1000 a week for the employees alone. The same business owner operates 2 other businesses in the same shopping center . The restaurant does not charge VAT.
mandela 1 year, 7 months ago
Whose fault is that? Our governments are known for going after the small man, putting them through the wringer, and squeezing every cent out of them, while the rich persons making millions of dollars can get away without being checked. Deal with vat collection the way the U.S. deals with their income taxes collection, go after the millionaires also, who owe us ( the struggling Bahamians) and collect our money, and give us ( the struggling Bahamians) a break
Sickened 1 year, 7 months ago
I think the business they're talking about was a millionaire - making $2million a year but declaring $10k. He was not a struggling Bahamian.
ThisIsOurs 1 year, 7 months ago
Has no correlation to whether the method used was overly aggressive and unnecessary. This could have been justified as the 3rd strike, not the first. Its clearly the opposite of Churchill's sane and wise statement on leadership, "walk softly and carry a big stick"
ohdrap4 1 year, 7 months ago
Was it stated that it was their first strike?
ThisIsOurs 1 year, 7 months ago
They did not state that "This is the 3rd time we've spoken to/communicated directly with this business and they refuse to comply". The govt has spent 3+ million on digitization, sending, at the most basic, a mail merge email to the list of these 50,000 organizations in violation shouldnt be hard. And of course each communication is spaced to allow time to comply, not for example sending 3 on 3 consecutive days to say 3 were sent
If they had communicated directly, they would have mentioned it. I'll accept that I could be very wrong, but communication doesnt appear to be their strong point.
ohdrap4 1 year, 7 months ago
Another problem too is the accountants, they sign the papers saying these businesses are making less money than they really are. While banks sometimes suspend accountants who do so, I wonder if the GOVT does the same.
However, if you are given months warning, the cars and boats will disappear.
But there is the VAT return too, they can fine for late VAT payment, so , if you have to remitted the VAT, the panalty could be swift.
BONEFISH 1 year, 7 months ago
@ This is Ours. The expression originated with Theodore Roosevelt the American president.
ThisIsOurs 1 year, 7 months ago
Wrong again. Thank you. Roosevelt know what I mean, the true definition of power in leadership as opposed to beating everybody over the head to show you in charge
sheeprunner12 1 year, 7 months ago
Briland brags that it's bursting at the seams with prosperity.
No wonder that Simon Wilson is pissed that they are not paying VAT.
Next up will be Exuma .......
hrysippus 1 year, 7 months ago
Nope, not Exuma, not Cat Island either, We got the voting electorate to think about, Election soon come.
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