Describing as “unfortunate and unwarranted”, the decision by commercial banks to suspend over 300 real estate-related transactions estimated at more than $200 million, Minister of Finance Chris Sinckler Wednesday accused the financial institutions of finding every practical reason to oppose the changes made to the Barbados Revenue Authority (BRA) Act.
In a stinging rebuke of the concerns of the commercial banks, Sinckler said they were all excuses for non-cooperation with Government generally, and the BRA specifically, as the state seeks to collect the tax revenue that is legally due to it.
“It is rather unfortunate that some banks and some lawyers in Barbados are hell bent on frustrating Government’s legitimate attempts to collect the tax revenue that is due to the state by their clients,” Sinckler said Wednesday in a statement from the Ministry of Finance.
“First they said it was unconstitutional, then they said they were not clear about how the law would work, now they are claiming it is delaying transactions because the BRA cannot give tax clearance certificates fast enough,” he added.
President of the Barbados Bankers Association (BBA) Donna Wellington warned Tuesday that until there was clarification on the process of obtaining a tax clearance certificate, the financial institutions would not be in a position to close any real estate-related transactions or disburse monies associated with those deals.
As of March 16, 2017, the amended BRA Act, which was also opposed by the Barbados Bar Association and the Barbados Labour Party, demands that individuals and corporations be fully paid up to all branches of the state before obtaining a tax clearance certificate.
According to the amended legislation, those wishing to obtain a tax clearance certificate to facilitate a conveyance, must pay up all tax, interest and penalties accrued under the Land Tax Act and Value Added Tax Act.
Sinckler insisted that some stakeholders in the legal and banking fraternity had not given the system time to work, “purely on the grounds that they did not want it in the first place”.
The finance minister made it clear that the law would remain in place and the Government “will not be bullied into repealing it because some people believe it should not be”.
“It is nothing short of amazing that these very actors have at times in the past sought to defend and excuse the reasons why it takes as long and costs client as much as it does to complete their work in getting mortgages and other real estate transactions done, but now are apparently determined to hold an entire country to ransom because they do not wish to cooperate with Government to halt the chronic hemorrhaging of tax revenue in Barbados.
“It is unwarranted and sad, and especially so since I am suitably advised that the BRA and the Bankers Association had agreed to a sit down meeting next week prior to this action being sprung it [the BRA] without notice,” Sinckler said.
He expressed confidence that any challenges – real or perceived – with the new system would be resolved “once reasonable people sit down and work through the issues”.
Meanwhile, in a separate statement Wednesday evening Revenue Commissioner Margaret Sivers categorically rejected the allegations by commercial banks, which she said “infer that the Authority is hampering the commercial banks’ ability to carry out their functions”.
Sivers said over the past two weeks the BRA received 316 tax clearance certificate applications, of which 73 per cent have been completed and returned to the applicants. She did not specify if they were real estate related.
“Under normal circumstances general tax clearances are completed within 48 hours once there are no outstanding tax obligations,” she explained.
The tax collector said it was premature for the bankers to make such allegations in light of a scheduled meeting on May 30.
“The Authority does not want to, in any way, prevent the taxpaying public from achieving their goals and plans. It is, however, our mandate to ensure that our taxpayers are compliant with their obligations under the laws of Barbados,” said Sivers.
This was not the first time the Government agency has had to clarify issues relating taxes here.
The introduction of the National Social Responsibility Levy last September proved to be a major headache for some manufacturers and retailers who had reported difficulty in applying the tax.
This had led to some retailers applying the two per cent levy as a sales tax, with the BRA warning that such a move was illegal.
marlonmadden@barbadostoday.bb
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Noticing that whenever I try to post a comment that isn't pro the Minister's position it isn't appearing in this thread and would appreciate an explanation for that.
Noticing that whenever I try to post a comment that isn't pro the Minister's position it isn't appearing in this thread and would appreciate an explanation for that.
Well said Mr Sinclair , don't back down all taxes MUST be paid to the government before title can be transferred and you know that this is normal business practice in all jurisdictions except Barbados. Bajans have been accustomed to too much freenes for too long and everyone knows that once that piece of paper is in the purchaser hand the transaction is completed and then the government will be carrying a tax receivable which it will have to write off later.
If the businesses and individuals pay their taxes to the government there would not be deficits .
The government should hire 50 tax auditors and go after all these lawyers , doctors and others who have not paid their taxes for years.
Mia Mottley should be ashamed of herself to mislead the voters that she is doing them a service by calling for a repeal of this law and you know what some if not all of the lawyers in Barbados need to be trained in real estate business law .
Well said, this is what happens when the lion lies down with the lamb. Then the lion begins to eat. Share rubbish. Pay to hell up or ship out. The government is to only go after the poor man all the time, while others get full and flabby. And all of this party shyte is just causing clouded vision. All of them is in the same schooner together.
Well said Mr Sinclair , don't back down all taxes MUST be paid to the government before title can be transferred and you know that this is normal business practice in all jurisdictions except Barbados. Bajans have been accustomed to too much freenes for too long and everyone knows that once that piece of paper is in the purchaser hand the transaction is completed and then the government will be carrying a tax receivable which it will have to write off later.
If the businesses and individuals pay their taxes to the government there would not be deficits .
The government should hire 50 tax auditors and go after all these lawyers , doctors and others who have not paid their taxes for years.
Mia Mottley should be ashamed of herself to mislead the voters that she is doing them a service by calling for a repeal of this law and you know what some if not all of the lawyers in Barbados need to be trained in real estate business law .
Well said, this is what happens when the lion lies down with the lamb. Then the lion begins to eat. Share rubbish. Pay to hell up or ship out. The government is to only go after the poor man all the time, while others get full and flabby. And all of this party shyte is just causing clouded vision. All of them is in the same schooner together.
Minister you have made a good decision extend this to travel where you need a tax clearance before you leave Grantley Adams that will collect some money. You got to look out for de fraud in these cases where it is alleged persons in revenue collection agencies have been know to stamp these certificates without the money being paid. You would need to number every certificate and a paper trail generated back to the monies paid. PUT IT ON TRAVEL MINISTER...........PUT IT ON TRAVEL
I agree Milli Watt 100%. Then use a dragnet for the others who trying to get through the fine holes.
Minister you have made a good decision extend this to travel where you need a tax clearance before you leave Grantley Adams that will collect some money. You got to look out for de fraud in these cases where it is alleged persons in revenue collection agencies have been know to stamp these certificates without the money being paid. You would need to number every certificate and a paper trail generated back to the monies paid. PUT IT ON TRAVEL MINISTER...........PUT IT ON TRAVEL
I agree Milli Watt 100%. Then use a dragnet for the others who trying to get through the fine holes.
Samantha I could not have said it better. Take a look at everything she has been involved in over the last 20 years. Always some implementation issue. I stay in my little corner and declare, time to give her a break Mr. Minister.
Samantha I could not have said it better. Take a look at everything she has been involved in over the last 20 years. Always some implementation issue. I stay in my little corner and declare, time to give her a break Mr. Minister.
At Frank White, "as if all their policies are dictated by the white community"…Money talks !!
At Frank White, "as if all their policies are dictated by the white community"…Money talks !!