Fraud expert says VAT is viable in the Bahamas

As of Monday, February 3, 2014

KENDRICK Christie, president of the Association of Certified Fraud Examiners Bahamas Chapter, asserted that “Value Added Tax is viable in the Bahamas”.

Calling on business owners to be responsible with the information they put forward as fact, Mr Christie said: “A lot of what I am hearing is at best anecdotal. The reality is the government is being prudent by aggressively tackling tax reform as the current tax system, led by customs duties experience high levels of leakage.

“VAT allows for enhanced checking ability for internal and external auditing and analysis that can be useful in business strategy.”

Mr Christie’s comments come as the Bahamas debt is expected to reach just over $5 billion by June 30.

“The accounting profession has been conducting training for its members and the public for almost a year to ensure individuals are fully prepared for the transition to VAT,” he replied when asked about how prepared his industry is for VAT’s implementation.

“There will be opposition to any increase in taxes at any point in time,” Mr Christie added. “The truth is that to avoid downgrading of our fiscal and monetary position, the government must act. The government may feel that they are in a Catch 22, however, the decision is clear – a new tax system is needed and one of the most equitable and transparent is VAT.”

Mr Christie complimented the government on its outreach to the different sectors of the business community.

“It appears to be a multistep educational process which started with the business community. I now note the consultation with consumers and I urge them (consumers) to prepare,” he said, noting that he expects the educational campaign to increase once the Value Added Tax Bill and regulations are passed through Parliament.

VAT since its introduction has been the most successful fiscal tool worldwide for revenue generation. No other taxation system has been adopted more rapidly than VAT and it has become the mainstay of national finances for developed and developing countries.

realfreethinker 10 years, 2 months ago

He endorsing vat but check out his surname HMMMMMMMMM

ThisIsOurs 10 years, 2 months ago

Is he related to PGC? Not to say that it disqualifies his statement but it's a detail that should be highlighted if he is.

sheeprunner12 10 years, 2 months ago

The above comments are typical Bahamian responses. We are obsessed with who is connected to who. Thats a national sin....... nepotism

ohdrap4 10 years, 2 months ago

The comments would not have been made if nepotism were not rampant.

ThisIsOurs 10 years, 2 months ago

Who is connected to who under a given set of parameters can also be called Conflict Of Interest, a worldwide sin

The_Oracle 10 years, 2 months ago

As a forensic accountant, he certainly stands to make money "auditing" either for Government or an unfortunate business owner. Most accountants who are under-employed are no doubt anticipating increased business. One only has to look at the newspapers over the last 10 years, many announcements of this certificate or that qualification, all geared to the foreseeable and now impending "First world" fiscal reporting requirements.

Honestman 10 years, 2 months ago

In a country like Bahamas where avoiding / evading Tax is built into the National Psyche, VAT provides the most scope for fraud out of all the tax options. So of course Mr. Christie has a vested interest in talking up the viability of VAT. Well spotted Oracle!

The_Oracle 10 years, 2 months ago

Anyone who has ever tried to have an intelligent, rational conversation with Bahamas customs senior officers would sensibly be quite concerned with expansion of their arbitrary power so uncoupled from intelligence or rule of law. Implementing a first world record keeping TAX such as VAT in a country devoid of a record keeping population is asking for trouble.

GrassRoot 10 years, 2 months ago

nothing to add. well said. the two best paying jobs in the Bahamas in near future: Customs officer and Fraud Examiner.

GrassRoot 10 years, 2 months ago

Just read this, its from one year ago, in a Country far far away from the Bahamas, where there are plenty of resources to tackle VAT fraud / VAT and the Bahamas don't go together, face it, not even academically.

http://www.telegraph.co.uk/finance/fi...">http://www.telegraph.co.uk/finance/fi...

paul_vincent_zecchino 10 years, 2 months ago

No country ever taxed itself into prosperity. Quite the contrary. For decades, until 'progressives' rewrote history with their 'narrative', the Bahamas were always seen as prosperous precisely because of their light tax structure.

sheeprunner12 10 years, 2 months ago

No taxation without representation .............. c.1770 USA >>>>>>>> WAR

Whose side are those representatives in our Parliament on???????????

Will this clueless government ignite a social uprising ???????????????

Bahamas4Bahamians 10 years, 2 months ago

Sadly, He's not a credible source editor. Kendrick is Christie's bag man, first cousin as well. In addition, he's a senior partner at: Grant Thornton, the accountant firm that handed The Government of The Bahamas a $1million bill en lieu of 'forensic audit' services at The National Insurance Board. One of which we've seen no fruitful action as a result of. Its the case involving Cargill and the like should I remind you readers.

ThisIsOurs 10 years, 2 months ago

What kind of reporting is this? That's the first question that the reporter should have asked given his surname...as I said before, in and of itself it wouldn't disqualify his statement (though the ransacking of NIB does in my opinion), but given that (I assume) the article was looking for an expert voice who was pro VAT, I would expect that it would at least look at the obvious factors that might tilt their opinion to one side or the other. Still report but let the viewers know those details so they can form their own opinion.

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