BASSETERRE, St. Kitts – WHILE rumours abound that the Government will lose revenue in the recently implemented six-month tax amnesty, the Ministry of Finance indicated that both the government and the tax payer would mutually benefit from the “win-win” situation.
“We are hoping that it will not be a sacrifice; in fact, it will be a win-win situation for all,” Minister with responsibility for Finance Dr. Hon. Timothy Harris stated during his April 8 press conference. “We are cleaning up that picture of a long arrears list in the millions of dollars. We are hoping that if we bring [tax amnesty] forward now, we would provide a constructive place on which we can continue our future engagement with all tax payers.”
The Finance Minister said the initiative serves to encourage people with taxable activity that is currently out of the system to come forward and pay their dues. He added that over time this would broaden the taxable net of the government.
“This would bring dividends for all of us in the long run. The larger the number of persons contributing to tax revenue, the less inclination there is over time to increase the amount per individual.”
Although in some cases the interests and penalties may amount to or exceed the tax arrears, Harris said that the Government anticipates significant amounts of revenue through the amnesty.
“Perhaps in some respect, those in arrears may benefit more because some persons and entities have accumulated interests and penalties which are equal to their tax indebtedness. They could have all of that saved, and at the same time the country benefits from having cash flow coming in on a much more reliable and steady basis.
“We expect significant sums,” Harris said. “In fact, the figures which we have reflect that there are substantial amounts reaching into millions which are owed to the Government. If it was not going to be significant, then we would not have put this [tax amnesty] in as a measure.”
The tax amnesty was launched on April 1, and is expected to run for six months. All compliant tax-payers would benefit from an 100% waiver on interests and penalties. Taxpayers wanting to take advantage of the limited time offer are asked to visit the Inland Revenue Department to verify their tax balances.
Taxpayers living abroad are encouraged to submit their requests in writing to the Inland Revenue Department in order to be considered under the amnesty programme. Alternatively, overseas-based taxpayers can authorize a representative who is residing in the Federation to act on their behalf.
All accounts may be settled by cash or valid cheques.
