GRENADA-FINANCE- Former government waived taxes amounting to millions of dollars over nine years

ST. GEORGE’S, Grenada, CMC – The Grenada government says the former administration waived more than EC$17 million (One EC dollar=US$0.37 cents) in taxes during nine years without a formal notice of a tax amnesty.

“The government of Grenada, through the Minister of Finance, has been waiving interest and penalties on all tax types, including PAYE (pay as you earn) and VAT (value added tax), over many years,” the government’s press secretary, Tahira Carter, said in a prepared statement.

“In fact, in the last five years, more than EC$17 million has been granted in waivers of penalties and interest across all tax types, including VAT and PAYE,” she added.

Prime Minister Dickon Mitchell led his opposition National Democratic Congress (NDC) to a 9-6 victory over the New National Party (NNP) administration of Dr. Keith Mitchell in the June 2022 general election. The NNP was in power between February 2013 to June last year.

Carter’s response to reporters followed the submission of questions that sought clarity on the legal requirements for a one-year tax amnesty announced by Prime Minister Mitchell on December 5, last year, and a statement from the Inland Revenue Department announcing its enforcement until December 2023.

The Ministry of Finance, in a separate statement earlier this month, said that “the tax amnesty will provide a 100 percent waiver on all interests and penalties to all taxpayers with existing tax arrears owed to the Division, up to December 31, 2021”.

Carter further said in her response that “by definition, a tax amnesty will require taxpayers to pay all (or a portion of past taxes) but will forgive all (or a portion) of the interest and penalties due on those taxes.

“Accordingly, a “Tax Amnesty” has been in effect for many years, including after the passage of the Tax Administration Act,” she said.

Carter assured that the Ministry of Legal advice is also being sought regarding implementing the tax amnesty.

“Notwithstanding the above, we have requested assistance from the Ministry of Legal Affairs in ensuring that all the legal requirements, including for the tax amnesty, are met to give effect to all the fiscal measures announced in the 2023 budget and to facilitate timely and successful implementation,” she said.