BASSETERRE, St. Kitts – THE Ministry of Finance has been able to make agreements translating to nearly EC $4 million worth of taxes, penalties and interests being paid during the Tax Amnesty programme, which began in April of this year.
The tax amnesty period, initially proposed in the 2009 Budget, covered over 15 tax imposts and was designed to ease the burden of taxpayers in arrears. It ran from April 1 to September 30 and allowed for a 100 percent waiver of interest and penalties on taxes in arrears.
During the six months, the Ministry held widespread public education meetings to engage taxpayers and at the end of the amnesty, Minister of Finance Hon. Dr. Timothy Harris has called the outcome “efficacious”.
“In the context of a very difficult year and tight global environment we were able to make progress on 446 tax arrears matters. This is a significant number of agreements.
“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 told SKNVibes in a recent interview.
According to a press release issued by the Ministry, some 28 arrangements were made for Corporation Tax, 36 for Consumption Tax, 39 for Traders Tax, 17 for Hotel and Restaurant Tax and 326 for Property Tax.
A total of EC $845 839.51 was waived as interest and EC $50 832.02 waived as penalties. In the overall period of amnesty, 484 arrangements were made and a total of EC $2 927 835.73 in tax is to be collected.
In all, the Inland Revenue Department collected EC $2 444 790.78 up to November 6, 2009 from the arrangements made, with a further $564 188.44 projected to be collected by December 31, 2009.
According to Harris, there are no plans at this time to extend the tax amnesty programme or to replicate it in 2010.
