Ad-Hoc Payroll Tax Review Committee to Submit Report in 2009

~~Adz:Right~~Roadtown, Tortola: Wednesday, January 7 – The ad-hoc committee set up to review payroll tax is expected to submit its report to the Premier and Minister for Finance Honourable Ralph T. O’Neal, OBE within the first half of this year.

Making this disclosure yesterday during the third sitting of the second session of the First House of Assembly of the Virgin Islands, Honourable O’Neal said the committee has been meeting on a regular basis.

Once its work is complete, a report will be compiled and referred to Cabinet for a decision to be taken on what should be done with it. One option will be for the report to be laid on the table in the House of Assembly but the Premier affirmed that this will be determined by Cabinet.

Honourable O’Neal explained that the ad-hoc committee is “vigorously examining the various provisions of the act and the effect that it has on the citizens of the Territory.”

Responding to a question from the Leader of the Opposition, the Premier said the report of the committee is likely to include some proposed amendments.

“While I will not pre-empt the findings of the committee,” the Premier told the House, “I do know that they are considering proposing a few amendments that will enhance the Act such that its application will be more equitable, and not affect some types of businesses unfavourably.”

The 10-member ad-hoc committee was set up in July last year under the chairmanship of Mr. Ian Smith.

In confirming the establishment of the committee, the Premier stated that its mandate will be to “identify inconsistencies within the Payroll Tax Act and make recommendations for amendments, or if deemed to be so fit, repeal the Payroll Tax Act.”

Payroll tax was introduced in the Territory in 2005.  The establishment of the ad-hoc committee represents Government’s commitment to review the payroll tax legislation.