The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A leading accountant yesterday called for the proposed Value-Added Tax (VAT) enforcement unit to be made “quasi-governmental”, on the grounds such a move could reduce political interference.

Kendrick Christie, partner and a Certified Fraud Examiner (CFE) at Grant Thornton (Bahamas), speaking with Tribune Business at an Association of Certified Fraud Examiners (ACFE) seminar yesterday, said it was important that the enforcement element of the VAT administration have “some teeth to it” to avoid the same problems plaguing the existing tax structure.

Mr Christie, head of the Bahamas ACFE Chapter, said: “We feel enforcement should be quasi-governmental. We all know that sometimes there is political inference.

“We think that there should be some element of independence with the enforcement unit so that when they go, and someone is politically-related, that will not be a factor.

“The enforcement is very important and has to have some teeth to it, otherwise you’re going to be faced with the same problem as with real property tax.”

Mr Christie said a VAT system relies heavily on businesses keeping proper accounting records and reporting the right information.

“We had a courtesy call with the Prime Minster and pointed out that we are here to assist in terms of identifying ways that fraud could occur under VAT,” he added.

“They obviously don’t want to come with this new tax and have slippage.”

The Government is proposing to implement a Value Added Tax (VAT) on July 1, 2014, at a rate of 15 per cent, while the hotel industry would be subject to a lower 10 per cent rate.