The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A senior private sector executive yesterday called for “immediate improvement” in the Value-Added Tax (VAT) Unit’s responsiveness to business community inquiries, amid concerns this could stymie the last minute “run on registration”.

The call by Edison Sumner, co-chair of the Government-appointed VAT Education Task Force, came as several business providers told Tribune Business that they were finding it impossible to contact the Ministry of Finance’s VAT Unit.

They complained that phone calls went unanswered, while even replies by the VAT Unit were fraught with problems - one executive recalling how its e-mail response went straight to his ‘junk mail’ box.

Mr Sumner, who is also the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, confirmed to Tribune Business he had received similar complaints and concerns from the private sector.

He said the Task Force had immediately informed John Rolle, the Ministry of Finance’s financial secretary, about the problem, which resulted in additional personnel and systems (phone lines) being allocated to the VAT Unit.

Mr Sumner acknowledged that, with the Government’s week-end, November 30 deadline for getting all 4,000-4,500 mandatory VAT payers now upon the private sector, timely responses to business queries were vital to hitting this target.

Failure to do so could further drag out the VAT registration process, complicating implementation and private sector compliance, amid the expected ‘last minute rush’ to hit the November 30 deadline.

Mr Sumner yesterday said some 2,500 businesses had completed the VAT registration process, and obtained their Taxpayer Identification Number (TIN).

This figure is akin to between 55.6-62.5 per cent of the total mandatory registrant target, depending on whether this number is closer to 4,000 or 4,500.

Yet one company executive, speaking to Tribune Business on condition of anonymity, said he submitted his company’s registration application several weeks ago and received no response or acknowledgement from the VAT Unit.

Eventually, he discovered that the VAT Unit had sent an e-mail reply, requesting certain Business Licence-related details, but the company’s computer system had automatically diverted this to the ‘junk mail’ box.

And, in attempting to provide the VAT Unit with the information it was seeking, the executive said he spent a frustrating afternoon attempting to reach it on the phone - to no avail. The phone either rang out, or was permanently engaged.

One accountant, also speaking on condition of anonymity, told Tribune Business he spent yesterday morning on the phone vainly attempting to reach the VAT Unit.

“The VAT Hotline (225-7280) is already unavailable. I tried to call for assistance to register several clients,” the source said.

“I hope this morning is not an indication of what to expect this week. Perhaps someone from the VAT Department will advise the public what to expect this week in being able to call the hotline.”

Tribune Business, too, attempted to ring the VAT Hotline yesterday. Each time the phone rang several times, before this newspaper was diverted to an automatic answering system.

“We’ve heard that complaint a number of times,” Mr Sumner conceded, when contacted by Tribune Business about the queries raised by its private sector contacts.

“We have addressed those concerns directly with the VAT Unit. They’ve assured us they have more people in place to answer these calls more quickly, not only phone calls but e-mails.

“They’ve increased their capacity, added more phone lines and more bodies as well, so the Unit can respond to these calls and e-mails in a very timely manner.”

Mr Sumner said the Task Force had spoken to Mr Rolle and the VAT Unit directly, acknowledging that the issue “is a concern” with the pace of registration set to peak this week prior to the November 30 deadline.

“Hopefully, we’re going to see some immediate improvement in that, as it’s very important calls are picked up and e-mails responded to and returned immediately.

“That’s the only way we can know the system works efficiently.”

Mr Sumner said such an “improvement” was vital given the increased volume of registration applications that will need processing, and queries that need answering, over these five days.

“This week has already seen a significant increase in the amount of activity,” he told Tribune Business. “We’ve been experiencing a higher than normal at the Chamber, and on my personal phone, on VAT registration and inquiries relating to VAT.

“As we expected, there’s going to be a run on registration this week. Unfortunately, we have procrastination, people waiting to the last minute to get things done.”

Mr Sumner added: “That run on registration will take its toll on people in the VAT Unit, as there will be increased calls and applications coming in.”

The BCCEC chief executive said around 2,500 companies had completed the VAT registration process, and added: “There were a significant amount of calls and applications being processed today.

“We expect to see several hundred more applications go through before Thursday/Friday this week.”