BASSETERRE, ST. KITTS, January 11th 2011 (CUOPM) – The Government of St. Kitts and Nevis said Tuesday that it views the practice of some businesses collecting the Value Added Tax (VAT) and not filing or paying it in to the Inland Revenue Department as an assault on the laws of the twin-island Federation.
Updating the Cabinet on Monday at its first meeting for the new year, Prime Minister and Minister of Finance, the Hon. Dr. Denzil L. Douglas, presented an update on the implementation of the Value-Added Tax (VAT) as of December 15, 2010.
“The Minister indicated that several hundred businesses had registered to collect the VAT and that the VAT unit was actively monitoring these businesses to ascertain that proper standards are maintained relative to the collection and payment of the new tax. It was reported that on December 15, the first day on which tax filing in respect of the VAT was due, and even prior to that date, a healthy number of businesses had filed their Value Added Tax with the Inland Revenue Department,” said the Post Cabinet Briefing.
However, Prime Minister Douglas told the Cabinet that a number of business entities who having registered and who having collected the VAT from its customers, have not filed nor paid the collected tax to the Inland Revenue Department.
“The government views this kind of practice as not only inimical to the welfare of the country but also as an affront, if not an assault, on the laws of the land and the integrity of the state. Government intends to apply the full force of the law to ensure that taxes which the citizens of this country have already paid to business establishments are transmitted to the Inland Revenue Department for the benefit of the people,” said the Cabinet statement.
Cabinet has expressed its full support for the Prime Minister and the Inland Revenue Department for the drastic taking into hand of this matter concerning the failure of those businesses to file and pay their taxes.
