The government of the twin-island federation, Saint Kitts and Nevis said that, following the implementation of the value-added tax (VAT) on November 1, authorities are planning to take enforcement action against entities collecting VAT payments but failing to remit them to the tax authority.
At its first meeting of the new year, the islands' Prime Minister and Minister for Finance, Denzil Douglas, told the Cabinet of the progress in implementing the tax in the Federation, and of businesses' compliance.
In a post Cabinet briefing, the government said:
“The Minister indicated that several hundred businesses had registered to collect the VAT and that the VAT unit was actively monitoring these businesses to ascertain that proper standards are maintained relative to the collection and payment of the new tax. It was reported that on December 15, the first day on which tax filing in respect of the VAT was due, and even prior to that date, a healthy number of businesses had filed their value-added tax with the Inland Revenue Department.”
However, Douglas told the Cabinet that a minority of businesses that had registered for VAT had neither filed, declaring the amount collected on behalf of the government, nor remitted it to the Inland Revenue Department.
The government views this kind of practice as not only inimical to the welfare of the country but also as an affront, if not an assault, on the laws of the land and the integrity of the state. The government intends to apply the full force of the law to ensure that taxes which the citizens of this country have already paid to business establishments are transmitted to the Inland Revenue Department for the benefit of the people,” said the Cabinet statement.
In the session's conclusion, the Cabinet supported efforts to be taken by the Inland Revenue Department to chase tax debtors, and the imposition of penalties where necessary.
At its first meeting of the new year, the islands' Prime Minister and Minister for Finance, Denzil Douglas, told the Cabinet of the progress in implementing the tax in the Federation, and of businesses' compliance.
In a post Cabinet briefing, the government said:
“The Minister indicated that several hundred businesses had registered to collect the VAT and that the VAT unit was actively monitoring these businesses to ascertain that proper standards are maintained relative to the collection and payment of the new tax. It was reported that on December 15, the first day on which tax filing in respect of the VAT was due, and even prior to that date, a healthy number of businesses had filed their value-added tax with the Inland Revenue Department.”
However, Douglas told the Cabinet that a minority of businesses that had registered for VAT had neither filed, declaring the amount collected on behalf of the government, nor remitted it to the Inland Revenue Department.
The government views this kind of practice as not only inimical to the welfare of the country but also as an affront, if not an assault, on the laws of the land and the integrity of the state. The government intends to apply the full force of the law to ensure that taxes which the citizens of this country have already paid to business establishments are transmitted to the Inland Revenue Department for the benefit of the people,” said the Cabinet statement.
In the session's conclusion, the Cabinet supported efforts to be taken by the Inland Revenue Department to chase tax debtors, and the imposition of penalties where necessary.
