The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

Ebowleg@tribunemedia.net

THE Department of Inland Revenue (DIR) has raised concerns about companies declaring zero revenue despite operating in thriving sectors like construction, while also urging businesses to renew their licences before the January 31 deadline.

DIR Operations Manager Dexter Fernander revealed that out of about 65,000 businesses expected to renew their licences, only 9,769 have done so, leaving a significant number still non-compliant. He called on businesses to meet the deadline and avoid potential penalties.

Highlighting issues in the construction sector, which leads in pending licence cases, Mr Fernander said discrepancies in revenue declarations were raising red flags. He explained that some businesses, despite operating in a booming industry, are claiming no income for the reporting period.

“This kind of declaration prompts an investigation,” Mr Fernander said.

“We need businesses to submit supporting documents to justify such claims. Otherwise, it’s impossible for the department to assess their compliance accurately.”

The DIR has intensified its scrutiny of businesses declaring zero revenue, particularly in industries experiencing growth, as discrepancies could indicate underreporting or non-compliance. Businesses may face fines, penalties, or audits if discrepancies remain unresolved.

For businesses earning under $250,000 annually, Mr Fernander reminded them that accounting certification is no longer required for licence renewal. “Simply declare your turnover, pay the associated tax, and move on. This streamlined process is designed to make compliance easier for small businesses.”

Mr Fernander also encouraged businesses to submit proof of renewal applications promptly, as this will allow them to proceed with essential activities, such as clearing goods through customs, without needing expedited licence processing.

He further noted that businesses offering short-term rentals are also under increased scrutiny. The department is working to identify property managers outside the jurisdiction and assess their tax obligations.

Penalties for non-compliance include fines and, in some cases, doubling the tax owed. Mr Fernander emphasised the importance of preliminary financial assessments to avoid delays. Businesses are also reminded that accounting certifications, where required, must be submitted by March 31.

“We are working to meet our mandate,” he said. “We encourage all businesses to meet the renewal deadline and ensure compliance to avoid unnecessary penalties or disruptions.”