BASSETERRE, St. Kitts – THE first half of the tax amnesty period has shown much promise for the Inland Revenue Department, Minister of Finance Hon. Dr. Timothy Harris recently stated.
Speaking to SKNVibes, Harris said that the six-month period has not only returned delinquents to the taxpaying net, but has also engendered an amicable relationship between the Department and taxpayers.
The tax amnesty period, initially proposed in the 2009 Budget, covers over 15 tax imposts and was designed to ease the burden of taxpayers in arrears. It will run from April 1-September 30 and allows a 100 percent waiver of interest and penalties on taxes in arrears.
In just a few weeks of effective operation and promotion of the programme, Harris boasted that the Department was able to secure agreement of over EC $1 million.
“To date, in terms of actual deliverables, we have had 140 tax agreements signed under the amnesty programme and that covered tax liabilities of over $1 million so far. The range of tax imposts covered under the amnesty arrangement includes Business and Occupational licence, Consumption Tax, Corporation Tax, Traders Tax, Hotel and Restaurant Taxes and Property Taxes,” Harris told SKNVibes.
Harris explained that Inland Revenue held 15 town hall meetings around the island for public awareness and education during the first month of the amnesty period.
He added that the Department had discussions with the Association of Accountants and the St. Kitts-Nevis Chamber of Industry and Commerce to “increase engagement with relevant stakeholders”.
Beyond the increased sums that the amnesty has brought into the government’s coffers, the period has allowed the Inland Revenue an opportunity to interface with a large number of tax payers and to get a better understanding of the needs of its client base.
“It brings people who were not paying taxes back into a regime of formal engagement with the system. By fostering greater understanding, the Department is creating a framework for ongoing dialogue and relationship building so that people don’t see the Inland Revenue in an antagonistic way,” Harris stated.
With agreements in excess of EC $1 million, the Department anticipates that the second half of the amnesty period would be marked by much more engagement, largely due to the June-September period usually being “a high point in terms of tax settlement”.
“We are hopeful and optimistic that with the benefit of the experience with the last three months of public sensitization and engagement, that we will have more tax agreements during the active payment period,” the Finance Minister concluded.
