The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Ministry of Finance yesterday launched a week-long exercise to assist companies in becoming voluntarily complaint with the taxes and fees owed to various government agencies.

Commander Bertram Bowleg, chairman of the Government’s Maritime Revenue Enhancement Task Force, said the move will serve as an educational exercise and offer assistance to business owners who are not complaint with agencies such as the Department of Inland Revenue, Bahamas Customs, the National Insurance Board (NIB) and the Port Department.

He explained: “The exercise is geared towards educating business operators in regards to operating a legitimate business. We have business operators who are operating. However, some of them have a step that is missing.

“Either they are not paying NIB for themselves or not paying NIB for their clients. Their Business Licence expired for a couple of years and they can’t get it because they’re not paying Customs duties or not paying NIB.

“So, we are bringing all the agencies together to ensure if you have a problem with NIB, Inland Revenue, Customs or Immigration you can see them and, before you leave the exercise, we can get your problem solved 80- 90 percent.”

Commander Bowleg said that, after this initiative closes, his unit will begin door-to-door visits to ensure companies pay outstanding fees or expired Business Licenses or risk facing penalties, legal action or the threat of being shut down.

He said: “Just like we do in the Family Islands we are going to hit the street and we come to every business. We knock on your door and come with all the organisations. So if we come to your business and you are not up-to-date with NIB or Inland Revenue, we give you a chance to pay that right there.

“We are doing the voluntary exercise because, when we come to your door, we have already given you the chance to come in and you didn’t, so then you will probably get served and have to go to court. So I implore the Bahamian people to take advantage of this because if they don’t, and we come to your door and your fees are not up-to-date or your Business Licence is expired, you will get shut down.”

Commander Bowleg explained that his unit has already conducted this exercise on five Family Islands and will continue to educate businesses before conducting door-to-door visits.

He said: “We have been going to all the islands and there are some loopholes. People are saying ‘oh, I didn’t know that I supposed to pay this or do that’. So after doing five islands we decided to go to New Providence and do an educational exercise before we actually go out into the field and actually knock on the door of your business and ensure you are compliant.

“So this is a voluntary compliance so that business can come in and, whatever area they are not compliant in, we can help you get there.” Commander Bowleg said many self-employed persons either do not pay NIB contributions for themselves or have incorrectly listed themselves as an employee and not the owner.

He added that there is no statute of limitations on government arrears, and persons who are behind on their NIB contributions can obtain their balance and be placed on a monthly payment plan.

Commander Bowleg said: “A lot of issues we have with self-employed persons is they sometimes don’t pay their own NIB, or they pay NIB but they have themselves registered as an employee and not an owner.

“Businesses can get a payment plan. We have been discovering persons who have not been paying their contributions for up to five years. When you come in NIB will tell you what your entire bill is and they will give you a payment plan. There’s no statute of limitation on government revenue, so you have to still pay it, but they can put you on a payment plan that you can handle every month.”

Commander Bowleg added that some businesses have been unable to get their Business Licences renewed as they collect their goods from Bahamas Customs with a promissory note and did not pay, leading to them not obtaining a Tax Compliance Certificate (TCC).

He said: “Businesses have been bringing stuff in and Customs have been releasing it on a promissory note. Then the Customs duty is not paid. So we tried to educate them on this because, if you get a promissory note, you have to still pay those bills. If you don’t pay your duty you won’t get your TCC so you can’t get your Business Licence.

“We are trying to make sure they follow every step so, when the Task Force comes to your organisation or business, all the boxes are ticked and you are good to go.”