The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Department of Inland Revenue's top executive yesterday asserted it is using its ‘power of sale’ as an “absolute last resort” against real property tax deadbeats who have gone decades without paying taxes.

Shunda Strachan, speaking at a seminar for large taxpayers, firmly rejected the suggestion that the Department is targeting particular businesses or acting without due process. She said that its ‘power of sale’ is used only in extreme cases involving decades of unpaid taxes.

“The Department of Inland Revenue is engaged in enforcement using the method of ‘power of sale’, and really that is for property owners who have gone decades without paying real property taxes. So it's not an avenue that we're using to collect from those taxpayers that are working with the Department or that may fall behind a couple of years,” said Mrs Strachan.

“These taxpayers are taxpayers either that have never paid real property tax or owe a significant amount of arrears up to decades.” Mrs Strachan explained that the ‘power of sale’[ is only pursued after extensive efforts to work with property owners, including outreach, payment plans and past tax amnesties.

She added that businesses which have not paid their taxes cannot be allowed to avoid their obligations while others comply.

“Inland Revenue has a process that it follows before we get to ‘power of sale’. ‘Power of sale’ is the absolute last resort. We would have reached out, we would have offered payment plans, we would have done any number of things. And you may be aware that the Government did offer several tax amnesties in the past to assist persons,” said Mrs Strachan.

“If we've gone to ‘power of sale’ on a particular property, it means that we have exhausted all means to collect. And then the question: Is it fair for some businesses to pay taxes and others not to pay? It's in the legislation. And so we are mandated to collect the Government's revenue.”

The Free National Movement (FNM) recently accused the Department of Inland Revenue of increasing the use of its ‘power of sale’ enforcement to collect unpaid real property taxes from Bahamian-owned commercial properties

The Opposition called for full disclosure on its use of the ‘power of sale’, seeking the number of Bahamian commercial and non-owner occupied residential properties seized and sold, who purchased them, and for how much. They also questioned what procedures exist to protect property owners’ equity and ensure they do not lose all their investment after years of building their businesses or properties.

“We are speaking to this matter now because the commercial properties being seized belong to Bahamians, many of whom worked long years to establish businesses on these commercial properties and who employ many other Bahamians. While we accept that the Department of Inland Revenue has been given certain powers by virtue of legislation, we question whether the laws and procedures are being carried out in a reasonable, proportionate, fair and transparent manner,” said the FNM.

“That you have the power means, firstly, that you must exercise that power reasonably, fairly and transparently in the best interests of the Bahamian people, which must include the consideration and protection of the taxpayer. The Government has a duty to ensure that Bahamians are not unconstitutionally or unreasonably deprived of their property.”