SVG

Gov’t waives interest, penalties as taxpayers owe EC$221 million

KINGSTOWN, St. Vincent – The government is waiving up to 80 per cent of tax interests and penalties as it seeks to collect some of the EC$221 million owed to the Inland Revenue Department (IRD).

Citizens who owe the state EC$100 or less in taxes, interest, or penalties, will see their balance automatically zeroed.

Vincentian citizens and cooperation owe the government EC$134 million in taxes and EC$86 million in interest and penalties, Prime Minister Dr. Ralph Gonsalves said Tuesday as he addressed “an important matter concerning taxes”.

Gonsalves, who is also Minister of Finance, told a media briefing that the outstanding amounts were accumulated between 1998 and March 20.

“And these are all types — corporation tax, personal income tax, PAYE, value-added tax, withholding tax, excise, property tax,” he said.

But Gonsalves said that the amnesties will not include pay-as-you-earn (PAYE) tax and value-added-tax (VAT.

“The VAT will be five years old on the first of May, and the PAYE, you are supposed to pay that over when you take that out of the workers’ pay packet and the excise,” he said.

“I want to tell the people of the country this because a number of persons who want me to do more in certain ways don’t want to pay their fair share of taxes,” he said.

“This is the same issue that President [Barack] Obama has to address in the United States: the issue of fairness.” Gonsalves further said he had approved an arrears management program by the IRD.

“First, an amnesty for the partial waiver of interest and penalty be extended to the tax payers in order to improve compliance levels and allow for a more efficient management of arrears in the future.”

The IRD has been accorded the discretion to settle outstanding amount prior to 1998.

Taxes, tax interest, and penalties prior to 1998 amount to almost EC$20 million while a further EC$200.8 million was accumulated between 1998 and March 20.

During the entire period, EC$122.4 million in taxes, EC$68.9 million in interest, and EC$9.4 million in penalties remain unpaid to the government.

Gonsalves said that the IRD has discretion on how to handle taxes outstanding up to income year 1997. The government, however, will waive 100 per cent of the interest and penalties payable on taxes up to that year.

The state, however, will not waive any tax owed between 1998 and 2000 even as it waives 80 per cent of the interest and penalties payable.

For sums from 2001 to 2003, the tax will still be due but the state will waive 70 per cent of the interest and penalties due.

For 2004 to 2007 there will be a 60 per cent waiver of the interest and penalties, while 50 per cent will be waived for 2008 to 2010.

Gonsalves noted that the waivers are applicable to cooperation tax, personal income tax, and withholding tax from 1998 to income year 2010.

“In relation to 1994 to 2011 property tax, again, there no waiver on the tax but there is a penalty interest, which will be waived to the extent of 80 per cent on all prior property taxes,” he said.

“So I am offering the taxpayers for company tax, personal income tax, withholding tax, substantial waivers in their interest and penalties,” Gonsalves said.

Follow our FeedFollow on FacebookFollow on Twitter

Advertisements

Discussion

11 thoughts on “Gov’t waives interest, penalties as taxpayers owe EC$221 million

  1. This is a national embarassment. Year after year there are been threats by the Comptroller of Inland revenue about taking measures to collect on outstanding taxes owed to the IRD. Now we see this was only talk. Why were companies and individuals allowed to run up these huge outstanding amounts without any reprisal, because (1) IRD lacks the capacity (2) Government intervention in forestalling collection efforts.

    Posted by Espy | April 18, 2012, 11:10
  2. This is just another mind game the PM is playing, the government owes a lot of those very same people money.He should first collect all the dirty money that has been embezzled by his party, that should be a couple millions.The man needs to retire and face his jail time like a man, and let ST Vincent move on, his governance has been a stain on the good name of our country. Good luck trying to collect money in the country, you yourself help to destroy. And mr Prime Minister sir, their is No Statute of Limitation for Rape, have a nice day.

    Posted by blane | April 18, 2012, 12:55
  3. Espy, the IRD is simply waiving the penalties and interest; efforts are still being made on the outstanding taxes. Furthermore, this type of tax amnesty is common practice even in more developed countries.

    Posted by HONESTY | April 18, 2012, 13:03
  4. This government can’t even collect taxes now……damn, can’t they do anything right?

    Posted by vincy in bad shape | April 18, 2012, 13:29
  5. Was any tax paid on the US$1million dollars cash that ‘Philistine Francis’ took to the bank in the crocus bag. Did any ULP family, friends, or politicians pay tax on the recieved in US$s cash. Even if this is dirty money its still taxable once it is recieved by Individuals etc.

    Did anyone declare this money, or any part of this money?

    Kettle black, ehhh

    I am thinking about launching a new society called ‘Catch a Crook SVG’, what do you all think?

    Posted by Peter | April 18, 2012, 13:53
  6. It is RIDICULOUS that persons and BUSINESSES OWE the GOVERNMENT some 221 MILLION DOLLARS. It is TIME to COLLECT on these TAXES OWED to the GOVERNMENT.

    If SVG were America, UK or CANADA, some of these PEOPLE would have ALREADY been in JAIL for TAX EVASION.

    Moreover, one has to question why CIVIL SERVANTS at the INLAND REVENUE SERVICE have not COLLECTED these TAXES over a SPAN of 15 years.

    To whom are these CIVIL SERVANTS ACCOUNTABLE?

    Posted by VINCY POWA (@VINCYPOWA) | April 18, 2012, 15:14
  7. RED HERRING FROM THE RED DWARF

    He put the tax frighteners on the Lawyers to shut them up, recently he put the tax frighteners on companies to make them submisive, now he is trying to put tax frighteners on the public. He is using it as a threat. I do not believe that people and companies owe these kinds of figures, it can only be a guese, if it was more than guese then the money would be collected.

    TELL US ABOUT THE TAX ON THE US$1million in cash, WHO PAID THE TAX.

    WHO HAS PAID THE TAX ON THE BIG SHARE OUT, ULP, GOVERNMENT MEMBERS, FAMILY, FRIENDS.

    WHERE HAS THE MONEY COME FROM TO OWN SEVERAL HOUSES AND SEVERAL VEHICLES, WITH SEVERAL WOMEN AND SEVERAL CHILDREN. WHEN PRIOR TO 2001 THE MAN IN QUESTION WAS TOTALLY BROKE. NOW WALKS AROUND PEELING OFF $100 BILLS FROM A BIG ROLL. LOOK AT YOUR OWN PEOPLE GONSALVES. THEY ARE THE NONE TAX PAYERS.

    HOW ABOUT THOSE OF GOVERNMENT AND CLOSE TO GOVERNMENT WHO HAVE REGULAR DRAWS FROM BUCCAMENT, GREAT LOADS OF TAKEAWAYS.

    LETS JUST HOPE THAT AT SOME TIME IN THE FUTURE THERE WILL BE A LOT OF PEOPLE LOCKED UP.

    Posted by Peter | April 19, 2012, 06:20
  8. WILLIAM WISE HAS SURRENDERED TO FBI
    http://www.topix.com/forum/city/raleigh-nc/TT5HRD50OFHI1UV3K#.T5FP-Z1-WmM.gmail

    MANY INVESTORS WERE LURED INTO THE PONZI SCHEME TRAP, BECAUSE BOTH THE GOVERNOR GENERAL AND PRIME MINISTER OF SAINT VINCENT AND THE GRENADINES APPEARED ON THE MILLENIUM WEB SITE, RECCOMENDING AND GIVING MILLENIUM SOME GREATER DEGREE OF CREDIBILITY. BOTH THESE PEOPLE WERE FRIENDS OF WILLIAM WISE AND ATTENDED SOME OF HIS PARTIES AT WISES SVG RESIDENCE AND SOME OFFICIAL GOVERNMENT RESIDENCES.
    WHEREVER WISE PARTIED HE HAD A BUNCH OF EAST EUROPEAN PROSTITUTES IN TOW.

    THE QUESTION IS HOW MANY INVESTERS DID SO BECAUSE OF THE WEBSITES VINCENTIAN POLITICAL CELEBRETARIES

    Posted by Peter | April 20, 2012, 08:06
  9. I am in total disagreement with this economic arrangement. This is not a fiscally prudent position to take when the country is in debt of over $1.5 billion EC dollars. The debt was only about $575 million when the the Political doctor took office. Clearly, the fiscal medication dispensed by this doctor is more disease oriented than curable. This is a man spending tax payers money like it is going out of style and fashion. Ralph Gonsalves and the ULP gang and supporters who are getting the lion share of tax payers money are mortgaging the future of the economy of St. Vincent and the Grenadines.
    Socialist leaders, like Ralph Gonsalves and his cronies are generally, fiscally irresponsible and abusive with tax payers money. In essence, they love to live large on other peoples’ money. We, as a country, are headed for a fiscal disaster in a question of time. Ralph Gonsalves understands the mindset of Vincentians and uses every opportunity to advance his personal interest and that of the ULP to the disadvantage of most Vincentians.
    What is the POLITICAL AGENDA behind this ill- guided fiscal arrangement, recently dispensed? Is there a possible election on the horizon? Is Ralph Gonsalves in a state of disillusion with respect to the fiscal state of SVG?
    I am a fiscal conservative who is socially progressive and will not advance such a fiscal irresponsible policy on a country that is faced with such a huge public debt. Ralph: your medication is filled with disease and will require the fiscal astuteness of a FISCAL CONSERVATIVE, like myself to cure your misguided economic policies.
    The economy, for whatever, LITTLE of it, existing,if any,as not been given a boost but a vaccine to further weaken its machinery of any possible economic growth. The whole economy and more specifically the tax system needs an overhaul. ST.VINCENT AND THE GRENADINES is not your personal bank account, Ralph Gonsalves!!!

    Posted by Ricardo Francis | April 22, 2012, 21:38
  10. RICARDO FRANCIS, what a classic piece, well done and should be understandable by all, including all the Marxist scum bags like VINCYPOWA etc.

    Posted by Peter | April 23, 2012, 17:00
  11. US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money? US$ 1 million in cash, dirty or clean money?

    WELL IFSA, SAY SOMETHING YOU BUNCH OF USELESS WANKERS

    US EMBASSY TAKE NOTE

    Posted by Peter | April 24, 2012, 06:36

I-Witness News’ tweets

Archives

%d bloggers like this: