The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

Bahamian accountants yesterday argued that the tax authorities’ failure to respond promptly to queries could leave them exposed to up to $150,000 fines over incorrect Business Licence fee certifications.

Several pushed back at the Bahamas Institute of Chartered Accountants (BICA) week-long seminars after Patricia Jackson, the Department of Inland Revenue’s legal compliance consultant, gave an update on the new Business Licence Act’s requirements.

She said the Department of Inland Revenue has seen “multiple cases” where BICA licensees certify turnover under-reporting by large taxpayers who are seeking to avoid their full tax burden. Ms Jackson added that the Department of Inland Revenue can refuse to accept any sign-offs when they believe the figures are incorrect.

She said: “The Department of Inland Revenue has had multiple cases of under-reporting by businesses. In many of these cases the turnover was certified by a BICA licensee. This has led to amendments to the legislative requirements to provide more detailed requirements for the review as well as to require audits for large taxpayers.

“If the Department of Inland Revenue has reason to believe that the report issued by a BICA licensee is incorrect it may be reported to BICA and the report may be refused.” Ms Jackson added that the law imposes penalties of up to $150,000 on accountants who submit false reports due to “neglect, carelessness, willful default or fraud”.

She said: “The Department of Inland Revenue may also administratively impose a fixed penalty for any false statement in a report that is attributable to the practitioner’s neglect, carelessness, willful default or fraud. The maximum fixed penalty that may be imposed in $150,000.”

But during the question-and-answer period, one accountant attendee said practitioners have had to wait “months and months” for a response from the Department of Inland Revenue when they have queries or need clarification on tax reporting matters. She suggested that the Department of Inland Revenue prioritise queries from BICA members as they represent the majority of firms that require audits.

Prentino Albury, BICA’s president, meanwhile said the Institute is working with the University of the Bahamas (UoB) to allow Bahamian accountants to sit the CPA (certified public accountant) exam in The Bahamas - a move that would make this nation the first jurisdiction outside the US to be officially listed as a CPA examination site.

He said: “Our commitment to education and professional development remains unwavering. We have expanded our range of topics and training programmes to meet the evolving needs of our members. These programs are meticulously designed to equip you with the skills and knowledge essential for thriving in the dynamic world of accounting.

“Additionally, we have advanced negotiations to enable the local administration of the CPA exams in collaboration with the University of the Bahamas, marking a historic milestone for both BICA and our nation as the first jurisdiction outside of the United States and its territories to be officially listed as a CPA examination centre.”

Mr Albury added that BICA has been liaising with the Department of Inland Revenue and the Ministry of Finance on new legislation such as the Business Licence Act. He said: “We’ve been actively engaged in advocating for policies and regulations that support the integrity and transparency of the accounting profession.

“We have created a working committee with our technical and SMP committees, collaborating with the Ministry of Finance and the Department of Inland Revenue to streamline new legislation, including the new Business Licence Act and its requirements.”