Senator Toni Moore today urged Government to end support for companies that avoid paying taxes.
During debate on a bill to amend the Income Tax Act, the trade unionist-senator told the Upper Chamber she was adamant that a clear message must be sent to companies who were not honouring their obligation. Drawing on the current COVID-19 crisis, Moore said taxes must be paid so that Government can take care of its people.
She said: “What is the reality for Barbados? Whether people paid taxes or did not pay taxes. Whether people paid NIS or did not pay NIS the Government of Barbados is still responsible for them.
“So the Government now has to find ways out of very scarce revenues to account to self-employed people, people who employers deliberately refuse to take out taxes and NIS for them. Government now has to find ways to deal with these people.
“I can name these people based on who I come in contact with. NIS inspectors know them. The Barbados Revenue Authority knows them. I challenge the Government of Barbados not to support these companies that are evading their tax obligation.”
The Barbados Workers Union general secretary also told Government to stop granting tax exemptions to delinquent companies. She said that allowing people to take away from the system which now has to look after Barbadians is not a good thing.
Senator Moore said: “How can the Government support them? In the different exemptions that they receive in the name of investment.… Investment cannot happen at a cost to decent work in Barbados. It cannot come at a cost to our social protection system.
“Yes, we have a fund set up since 1982 that we have not had to use. But, COVID-19 is showing us that if we are not careful we are not going to last through the 26 weeks of unemployment insurance that is provided. Putting more money in people’s pockets is good.
“Taking from the systems that (have) to shore up the society is not good. The high levels of tax exemptions that we know about, in the form of tax evasion, must be vigorously pursued. People ought to pay they should be made to pay.”
The trade unionist also criticised what she described as “loopholes” in the tax collection system.
“Taxes are an important source of tax revenue. We have not used our tax administration systems well enough. We have not done enough to make sure that we can address failures,” she declared.
Senator Moore pointed out that she was seeing a worrying trend of some employers replacing employment contracts with contracts for service.
She told the Senate: “I have had to challenge the Government, this Government even under the recent BERT programme not to put us in a position where we are trying to derive short-term gains by taking people off a payroll and bringing them back under contracts.
“When you take people out of contracts of service and put them in contracts for service. If it isn’t managed properly you are removing people from feeding into the tax system.
“These people are not likely to be paying into the tax system. They are not likely to be paying NIS into social security. Even if they are paying in a time like this self-employed people or people under contract for service do not benefit from unemployment insurance.”
