The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Chamber of Commerce is calling for the Government to raise the threshold above which companies must have their annual turnover certified by an accountant from $100,000 to $1 million, with $400,000 as a compromise.

Edison Sumner, its chief executive, told Tribune Business that

the new $100,000 threshold for Business Licence verification purposes was too costly and onerous for small and medium-sized businesses.

He added that it was an issue the private sector body has taken up with the Ministry of Finance.

“I did have discussions directly with the Ministry of Finance, the minister of state as well as the financial secretary, and they were mindful to take it into consideration,” Mr Sumner said of the Chamber’s proposal, “but we haven’t had the chance to follow up on it.

“We have gotten a number of calls from small businesses who have expressed concerns on this. The Chamber has to now follow through to ensure that the Government is going to follow through and make some quick amendments.”  

Michael Halkitis, the minister of state for finance, had previously told Tribune Business that  the Government would be willing to work with the private sector on the revised $100,000 ‘certification threshold’ for Business Licence fee turnover.

He added that the Government was open to an alternative solution for a change designed to combat tax evasion by Bahamian businesses.

Mr Sumner told Tribune Business:”Our recommendations were that the $100,000 threshold was going to be too onerous on too many businesses. For many businesses, their turnover is under $100,000, and to have to have an audit carried out and have accountants sign-off on their financials would have been an onerous and very expensive process, considering that they already have to pay  Business License fees and VAT.

“We suggested that they look at pushing that threshold up even as high as $1 million on the annual turnover but, if they weren’t prepared to do that, they should at least tie it in and make it consistent  with reporting requirements for VAT registrants, which is $400,000 and below.”

Under the VAT guidelines, a business must have an annual taxable turnover of $400,000 or less to qualify for the flat rate accounting scheme.