The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Sir Franklyn Wilson last night hailed the Prime Minister for “restoring logic and sense” to tax compliance after the latter pledged that machine gun-toting officers will no longer be marching into businesses.

The FOCOL Holdings and Arawak Homes chairman, in an interview with Tribune Business, branded the previous tactics and approach of the Revenue Enhancement Task Force as “crazy” and “not making any sense” as he charged: “Whose bright idea was that?”

However, Sir Franklyn said it was “welcome news” that Prime Minister Philip Davis KC, in addressing the House of Assembly yesterday, promised that the tax enforcers will “employ a better way” that is less heavy-handed and does not require heavily-armed police and Defence Force officers to enter every business premise.

“That’s welcome news,” the Sunshine Holdings chief told this newspaper. “I don’t understand why what was happening made sense. It just didn’t make sense to me. I’m pleased to see the Prime Minister address it. That’s the return of logic and sense.”

Sir Franklyn said he first heard about the Revenue Enhancement Task Force’s on-site visits to individual businesses when he was in Eleuthera, but dismissed the reports he received as an anomaly and one-off. Asked whether he believed the approach was overkill, he replied: “Absolutely. Man, whose bright idea was that?

“That was crazy. It was crazy. I didn’t experience it myself... The first time I think I heard about this I was in Eleuthera. I just thought it was an aberration. It makes no sense and, thankfully, the Prime Minister seems to have restored sense.”

Mr Davis’ announcement of adjusted Task Force tactics did not come as a surprise. His spokesman last week said the approach was being “reviewed” following widespread private sector outcry over machine gun-toting officers entering businesses for tax compliance check-ups, which has been variously slammed as “complete overkill”, “barbaric” and for treating companies as if they are all common criminals.

Tacitly conceding that Task Force teams have been too aggressive in their approach, the Prime Minister told the House of Assembly: “It was the enforcement unit. They thought they had to show force to enforce but, in this instance, I have expressed that there is a better way as you [the Opposition] have pointed out, and the better way will be employed going forward.

“I don’t expect to see scenes that we have seen going around in the viral of [armed] men going into businesses unless it’s a necessary escalation of issues that might apply. In some instances, the advice I was given was that the armed persons were present because they were collecting cash at some establishments, and they were there for the purposes of protecting the cash as they were going on.

“But it just spilled over into other areas. There will be a demarcation where they are collecting cash, and they need security for the cash, or whether they’re just going to make inquiries about compliance. Those demarcations have been, are now being, implemented,” Mr Davis continued.

“We don’t expect to see that unless, as I said, it’s a circumstance where cash is being collected from a business establishment or, in cases where there’s some escalation of issues between the inquirers and the business places. As I said, there’s a better way, and the better way will be employed.”

It remains to be seen how the “better way” unveiled by the Prime Minister is interpreted by the Task Force and implemented in practice. Mr Davis seemed to imply that armed officers will no longer automatically march into businesses alongside revenue officials, and instead will largely remain outside the premises unless there is a perceived threat to the Task Force’s safety or they are needed to secure cash payments.

Meanwhile, Family Island business communities are bracing for the start of Task Force visits and inspections in their destinations. Daphne de Gregory-Miaoulis, the Abaco Chamber of Commerce president, told Tribune Business she was unaware of any incidents on Abaco to-date but asserted it was “inevitable” that the enforcement check-ups will start.

“I think it’s horrendous what they are doing,” she said. “I can’t believe that people are giving millions of dollars in cash for them to need that kind of protection. It’s actually shocking. I don’t know how they can actually justify it. 

“I know why they are going unannounced because they think they’re going to catch criminals running out the door with files. Have we not got more real criminals they need to be going after rather than people actually paying and complying with their taxes?”

Asked about the mood among Abaco’s business community, having seen what has happened on New Providence and elsewhere, Mrs de Gregory-Miaoulis replied: “I’m sure that people are very concerned about it and looking at what they need to do to be prepared for it.

“It’s inevitable that they’re going to come. It’s inevitable that they are going to come to all the major islands. I think it’s alarming. I’m glad I’m not in Nassau. I’d be fearful if I was a business owner. It doesn’t encourage the spirit of entrepreneurship that they are going after seasoned businesses.

“A person going into business, with all the red tape and all the hoops you have to jump through to get a Business Licence and still operate, they might think twice now about what they are getting into.”

The Bahamian private sector to-date has viewed the Task Force’s approach as overly-aggressive, unnecessary and particularly disruptive and damaging to tourism-based businesses such as marinas, where visitors have witnessed revenue officials descend on businesses accompanied by machine-gun toting officers.

However, Commander Bertram Bowleg, chairman of the Government’s Maritime Revenue Enhancement Task Force, last week explained that its activities are part of a “door-to-door” tax enforcement strategy to ensure companies are compliant with all taxes.

Signalling that this is the next step, following the recent voluntary compliance exercise staged by the revenue agencies, Commander Bowleg refuted suggestions that its teams were “heavy handed” or “aggressive” in their approach.

Asserting that officers are not pointing their weapons aggressively at customers or staff, he pointed out that it was standard practice for law enforcement to carry arms in the modern Bahamas. Commander Bowleg said the presence of armed officers was necessary to protect tax officials given the possibility that some delinquent companies may react negatively to demands for payment.

“We are doing on-the-spot compliance,” Commander Bowleg said. “You can pay now. We’re coming to you and getting you straight and compliant. We’re trying to reach out more. We aren’t trying to shut down nobody. We’re not trying to inconvenience anybody. We’ll have to do another voluntary compliance in my opinion. We want people to come in. We will run another voluntary compliance week shortly in a couple of weeks.”