The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government was yesterday said to be willing to work with the private sector on the revised $100,000 ‘certification threshold’ for Business Licence fee turnover.

Michael Halkitis, minister of state for finance, said the Government was open to an alternative solution for a change designed to combat tax evasion by Bahamian businesses.

Explaining the rationale for the Government’s decision to require all businesses with an annual turnover greater than $100,000 to have this certified by an independent accountant, Mr Halkitis said: “People talk about compliance and say that the Government must collect what is due.

“You need certain tools to be able to do that. We have had instances where individuals have made turnover filings to the Business Licence Department that were not correct. We want to make sure that we get the most factual information possible, and so we are asking that returns be certified.”

    Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, earlier this week urged the Government to reconsider the proposed $100,000 threshold for companies to have their turnover certified by an accountant, arguing this would almost double Business Licence costs for small firms.

He said there had already been “a large cry” from small and medium-sized companies (SMEs) over the proposed change to the Business Licence regulations.

Documents annexed to the 2015-2016 Budget address state the Government plans to “amend the Business Licence regulations so that it is mandatory that filings exceeding $100,000 turnover are certified by an independent accountant”.

This represents a major reduction from the previous $1 million threshold. Mr Bowe, a PricewaterhouseCoopers (PwC) Bahamas partner and accountant, suggested that such an assignment would cost a business around $3,000.

    Mr Halkitis told Tribune Business: “We always are prepared to listen and get feedback, and see if it is a hardship. A lot of times when we introduce a programme we may get an immediate reaction, and then they realise that it is not as onerous as some people think.

“We have to do the best that we can to collect what is due, so that we don’t have to be increasing taxes. So it’s important that the people who owe the Government pay on time, and give accurate information to the Government.

“If we get representation that this is onerous, or any proposal is onerous, and we need to take a look at it, we are always prepared to sit down and come to an agreement. We have done it over and repeatedly. If there is  particular reaction from one segment our attitude is: Let’s sit down and see how we can some up with a solution that works for everyone.”