NASSAU, Bahamas, CMC – Finance Secretary, Simon Wilson, says the government is owed “hundreds of millions of dollars” in tax arrears as the authorities continue a crackdown on delinquents and businesses suspected of evading value-added tax (VAT) and Business Licence fee payments.
Last week, the Department of Inland Revenue (DIR) conducted an island-wide operation seizing assets of at least two businesses suspected of owing US$1.3m in taxes.
“We’re not targeting businesses. We’re just going through a compliance strategy to ensure that we encourage businesses to be compliant. If you’re non-compliant, there are consequences of non-compliance,” Wilson told reporters.
“The one thing we want from businesses is transparency in operations. I think they’ve started being a little more transparent,” he said, noting that officials are planning several more operations throughout the country to recover outstanding taxes.
He has also promised that the authorities will be targetting businesses that make false declarations.
“We have 50,000 businesses registered, alright, and about 40,000 of those businesses report turnover of less than US$100,000, so they pay zero, so that’s all we know,” Wilson said.
“That’s our universe, and we work through that universe to determine instances of non-compliance. People don’t put a flag and say they’re non-compliant. They try to be discreet in their non-compliance,” Wilson said, noting that about US$800 million in real property tax is owed.
“Most property taxes are owned by foreign-owned properties because, you know, Bahamians have a wide level exemption, so this is probably driven mostly by non-Bahamian-owned properties,” he said.
Asked by reporters about other potential penalties, Wilson said he would like to see wage garnishments.
“Obviously, with businesses, we tend to be more forthright with businesses in our discussions with them,” he added.
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