The Tribune

• PM’s spokesman says ‘no one penalised’ for lateness

• Opposition MP seeks clarity on how long waiver lasts

• Chamber urges ‘more harmonious working relationship’

By NEIL HARTNELL

and FAY SIMMONS

Tribune Business Reporters

nhartnell@tribunemedia.net

BAHAMIAN businesses yesterday branded the Government’s pledge to waive fines for late payments and filings due to its tax portal’s woes as “a huge relief” after suffering “hell” trying to comply.

Companies, accountants and service providers told Tribune Business it “was the least” the Davis administration can do after Keishla Adderley, the Prime Minister’s spokesman, confirmed the private sector will not be penalised for missing Wednesday’s Business Licence filing deadline due to persistent challenges in accessing the Department of Inland Revenue’s portal and completing the process.

Speaking at the Prime Minister’s Office’s weekly media briefing, Ms Adderley admit- ted that the tax authorities have encountered “some difficulties” with the upgraded portal’s roll-out but said the “kinks” are being worked out with the process due to be completed in the coming days.

“The Department of Inland Revenue, as you may know, has been having some difficulties with the processing of Business [Licence] applications. And, of course, that has implications for business persons who want to get themselves in order within the specified time,” she conceded.

“I’m advised that because they are changing over the system, trying to introduce a new system, which is intended to be a much smoother, more user-friendly system, that per- sons who are trying to access it and process their applications may be having a little difficulty.

“However, I’m advised that those kinks are being sorted out and in the days ahead it should be smooth sailing. Certainly, persons involved are working on it to ensure that that happens. In the interim, the assurance is being given that no one will be penalised because of any lateness as that is being rectified.”

Ben Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told this newspaper it had been “hell” trying to log-on to the Department of Inland Revenue’s website and complete the Business Licence filing process amid the constant fear of financial sanctions for missing the January 31 deadline.

“It was hell,” he said simply. “I think it’s concluded, but I know there was a lot of glitches. This is not working, that’s not working. Attempting to long-on took up a lot of time and resources. They did offer some assistance, which we appreciate, but it was poor.”

As to the Government’s confirmation that it will waive fines for those who missed the end-January deadline due to the technology woes, Mr Albury, who is also Bahamas Bus and Truck’s general manager, told Tribune Business: “It’s a huge relief. I’m sure it will be appreciated.

“I actually spoke to another business owner today, who said he was still struggling to get it accomplished. It’s through no lack of wanting to comply. People want to do it, and do it right, but so far it’s been very cumbersome.”

Timothy Ingraham, the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) president, said it “would have been very unfair” for the Government to impose fines for late Business Licence filings given that the issues that caused this were outside the private sector’s control.

“The decision of the Government to not levy fines on businesses which could not access the online tax system is a very welcome one [for] the BCCEC. It obviously would have been very unfair to fine persons for something which was in the control of the Government,” Mr Ingraham said.

“The BCCEC urges the Government to do all it can to avoid such disruption in future, as it raises the angst of the business community and leads to a sense of confusion. We are always open to assisting in any way that we can to ensure such projects are implemented as smoothly as possible.

“Early consultation with the BCCEC and other stakeholders prior to launch could assist in a successful launch and a much more harmonious working relationship between the business community and the Government.”

However, Adrian White, the Opposition MP for St Anne’s and an attorney by profession, while welcoming the Government’s decision not to impose fines also urged that it swiftly clarify how long struggling firms have to complete their Business Licence filings before it will levy penalties for non-compliance once again.

Arguing that it was vital to private sector certainty and clarity that the Government take this next step, he suggested that the waiver last until March to allow time for the necessary technology and additional infrastructure “bandwidth” to be installed and then tested to ensure it is functioning properly.

Describing the fines waiver as “a big relief”, he told this newspaper: “While there has been a communication that there won’t be any penalties applied, we don’t know how long that period is going to last. From the House of Assembly yesterday, the communication by Mr [Wayde] Watson, it’s clear we’re not expecting the bandwidth to be in place for another two weeks, maybe longer.

“While we have received something from the Government, the public has been mistreated to a malfunctioning system. Outside of the vendor, there had to be some administrator in the Department of Inland Revenue on the online technology side who could have identified that the parts for this roll-out were not in place.

“It really appears to be a situation where a degree of negligence has occurred, and possibly gross negligence has occurred, and it’s been put on the backs of the Bahamian people. We’ve been subjected to a wrong as a result of negligence by a government agency who should have been reviewing, anticipating and correcting these glitches before they were put on the backs of the Bahamian people.”

Mr Watson, the Bain and Grant’s Town MP who is spearheading the Government’s digitisation drive, sought to shift blame for the online tax portal’s woes to the former Minnis administration as he complained to the House of Assembly on Wednesday that its successor was “shackled by the hands” due to the procurement solution that was chosen.

He said: “There was an upgrade by the vendor. The vendor proceeded to complete the upgrade in a timely fashion. However, the resources on the network infrastructure were required.

“Those resources, again, [faced] some challenges as it relates to the procurement system that was implemented before we had an opportunity to take office, and before we were shackled by the hands to abide by this procurement solution.”

Mr Watson, also parliamentary secretary in the Ministry of Economic Affairs, said the resources needed by the vendor would take six to eight weeks to arrive on New Providence so they attempted to revert to a previous system but encountered further challenges.

Based on Mr Watson’s explanation, Mr White yesterday said it would likely take a minimum of two weeks - and possibly four - for the required technology to arrive in the country. It then has to be installed, and the online tax portal tested, to ensure it is work- ing properly so, based on these requirements, the St Anne’s MP said the Government should be “aiming for March” before reintroducing fines for non-compliance.

“What next needs to happen, and I expect the Government will not be in a position to do this until they install the technology and test it, but we can’t continue to have members of society continue to log-in every day,” he added.

“There should be relief now that the fines have been waived for a certain period but we need to know what that period is because that’s when people have to make renewed efforts to have the information filed and provided.

“I don’t think that’s going to be within two weeks. It should be a month or two months from today’s date because yesterday [Wednesday], Mr Watson confirmed that it’s anywhere from two weeks yet till we have the technology in the country, and possibly four weeks,” Mr White continued.

“They also have to reallocate resources so the application being used can have the proper power it needs to process all these applications. What we now need to hear is that they’re aiming for March, so persons should not be concerned to have their application in, but between March 1 and March 31.

“This will give the Government added time to install the technology and run the tests so everyone can say the ease of business is here again with respect to the Business Licence renewal process and VAT filings.”

One business owner, speaking on condition of anonymity, yesterday said of the Department of Inland Revenue’s online tax portal: “In three attempts I have not been able to get password resets - once through the portal, twice in person - first when I had e-mails sent to three addresses and never received the e-mails, and the last time on the 30th when the system was down and I completed a paper form with information for the addresses.”

Peter Maury, the former Association of Bahamas Marinas (ABM) president, said he was barely able to complete Business Licence filings for two holding com- panies he oversees in time to meet the deadline.

“I finally finished at about 9pm last [Wednesday] night, back and forth,” he told Tribune Business. “Today the site was still on my screen and I clicked on it, and it still didn’t come up right away. It took for ever and ever. I was at lunch today with some people. I didn’t say a word, and they were talking about how they were sat in their office all day [on Wednesday] trying to get it done.”

Pretino P. Albury, the Bahamas Institute of Chartered Accountants (BICA) president, said the mood in the private sector after the Government confirmed it will waive the late return fines was “it’s a little late but we’ll accept it”. He added that “it’s a little more relaxed, less tense and there’s not so much frustration” around efforts to use the online tax portal.

Marinas (ABM) president, said he was barely able to complete Business Licence filings for two holding companies he oversees in time to meet the deadline.

“I finally finished at about 9pm last [Wednesday] night, back and forth,” he told Tribune Business. “Today the site was still on my screen and I clicked on it, and it still didn’t come up right away. It took for ever and ever. I was at lunch today with some people. I didn’t say a word, and they were talking about how they were sat in their office all day [on Wednesday] trying to get it done.”

Pretino P. Albury, the Bahamas Institute of Chartered Accountants (BICA) president, said the mood in the private sector after the Government confirmed it will waive the late return fines was “it’s a little late but we’ll accept it”. He added that “it’s a little more relaxed, less tense and there’s not so much frustration” around efforts to use the online tax portal.