Inniss: It’s not another tax
IT is not another tax and it will not impede the sale of real estate in this country.
Entering the debate on the Barbados Revenue Authority (Amendment) Bill, 2017, Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss, sought to make it clear that the legislation was aimed at improving the Government’s tax collecting capability.
“It is not designed to cause any frustration, nor is it designed to prohibit the sale of property. It is simply a case that if you wish to dispose of a piece of real estate, please ensure that you have made arrangement for the settlement of taxes due under all the other taxing acts of this country. That to me is a very fair and simple arrangement … that would improve efficiency, broaden the tax net, ease the burden across all of our constituents and ensure that we can get this economy going the right way,” he said.
He insisted that with the State having a cash flow problem, it was necessary to put in place steps to collect the money owed to Government and therefore the issue should not be one of partisan divide.
Speaking in the Lower House yesterday, he urged the Opposition to be careful in the way they debated the matter, noting that it was irresponsible to mislead persons into thinking that the legislation would result in poor persons being unable to own or sell property.
“It simply says if for example, you owe $100 000 in income tax, and you are selling a property for $1 million, you would make an arrangement with the revenue commissioner to pay 10 per cent – $10 000, and you make an arrangement of how you would pay the other $90 000… Once that arrangement is made and you have paid your ten per cent, you will now get a tax clearance certificate, which then allows the attorneys involved in the matter to proceed in the sale of that property without any encumbrances on it,” he said, adding that this does not “fly” against the constitution.
“It is not a case where the State is saying that you have to settle the payment in full or all of your indebtedness in other taxing acts before you can get your tax clearance certificate to sell that property,” Inniss stressed. (JMB)