FIND A SOLUTION

“I believe it is incumbent on the administration, Ministry of Finance, Central Bank and the relevant entities to find an appropriate and timely solution to the backlog of tax refunds that we have in Barbados.”

This was stated by Minister of Finance and Economic Affairs, Christopher Sinckler, while speaking yesterday at the launch of the Tax Administration Management Information System (TAMIS) for the Business Sector at the Lloyd Erskine Sandiford Centre.

However, he explained, “The partnership goes both ways. If I’m going to ask persons to pay in, then the BRA should be in a position when called upon by law and otherwise to pay up, but tax refunds are a function of how much money you collect in revenue – they are a charge on the revenue. There is not a heading you would find in the Estimates called ‘Tax Refunds’. Once the money flows in, it flow out.

“Sometimes the system gets clogged and this is affecting the integrity of the Barbados Revenue Authority (BRA) because it appears that the Revenue Authority is only heard from loudly when they want money, but they are silent when they have to pay out. This is not fair to taxpayers, the Revenue Authority or the Accountant General because he cannot pay what he does not have. We need to find a way to break this deadlock and I am instructing the Ministry of Finance, working with the Central Bank, to put in place a system as quickly as possible to get the flow of refunds back to persons of Barbados. However, it has to be done in a responsible way that does not cause disruption to the economy or damage to the financial system.”

Sinckler cautioned, “BRA was not created out of spite, it was not done to punish anyone, it was done to make the system more efficient because the more revenue we collect, the less taxation we have to impose and the less borrowing we have to do. The success of BRA will impact the Barbados economy, it is as simple as that. If we under invoice at the Port we lose revenues in droves, if we don’t file our income tax we not only deprive the Revenue Authority of the revenue that they need to pass on to the Accountant General to allocate to different services, but we also put them under pressure with the international tax authorities. So when we can’t produce that information so that we comply with our international obligations, then we find ourselves on a blacklist and then we have to fight to get our names off. Therefore, it cuts several ways. BRA prefers voluntary compliance that persons do what is legally and morally right. When each puts in, each gets out and that is critical to a successful Barbados.”

He noted, “The final transition of Customs into the BRA is an absolutely critical element in transforming the Barbados economy through building an efficient tax administration. It is time we bring this chapter to a timely conclusion that we can go on to build the most efficient system in Barbados and the region.” (NB)