ISSUE No. 38 In This Issue ….
January - September 2011
Executive Council Desk 2-4
CARICOM Updates 5
Country Reports 6-10
Executive Council (2010-2012)
Keep In Step 11
Tax Court Case 12
Council Member Culture Cross-Point 12
Council Member COTA Newsletter is Researched and
Trinidad and Tobago Produced with input from COTA
Council Member Members by the CARICOM Secretariat
Belize Economic Development Policy, Tax Administration &
Immediate Past President Research Programme
Montserrat Contact: email@example.com
Alternate Council Member Phone: (592) 222-0001-75 or 222-0143
Fax: (592) 222-0155
Page | 1
Editorial →Renewing the Spirit of Cooperation and Collaboration.…
The COTA Newsletter has resumed publication after a one‐year hiatus during which
the COTA 21st General Assembly and Technical Conference was successfully held in July
2010 in Barbados. Noteworthy, as well, is that our Organisation entered its 40th year
of existence in August this year. It is therefore a good time to remind ourselves of the
goal of COTA ‐ to encourage and promote effective cooperation and collaboration
among tax administrations in the Caribbean Community. It is also a time for
reflection on our achievements and successes over the years as a regional
organisation and to chart our future to meet the challenges facing tax administrations within our
Region. Many of our administrations have coped with the challenges of tax reform and organisational
change at a time when many economies have been in recession and have had to generate enhanced tax
revenues to support necessary economic adjustments.
Throughout these challenging times, COTA, though hampered by resource constraints, has sought to
support its Member Administrations by collaborating with regional institutions (CARTAC and UWI) and
bilateral partners (United States Treasury Office of Technical Assistance and Mexico Ministry of Finance)
to provide opportunities for training and exchange of information in relevant areas. COTA has been
working towards maintaining such collaborations as well as forging new alliances. Your Executive
Council, under the astute leadership of the Belize (2008‐2010) and Barbados (2010‐2012) Inland
Revenue Departments, has focused on the roll‐out of a new COTA Strategic Plan (2011‐2013) which
emphasizes the continuation of such alliances in support of our objectives. Indeed, the new Strategic
Plan stresses a commitment to quality service, professionalism and integrity in Tax Administrations.
This principle will be embodied in the proposed COTA Code of Ethics which will shortly be circulated to
Members for comments. COTA continues to emphasize the importance of training and continued
learning in building professionalism amongst tax administrators. COTA therefore welcomes the
decision of UWI Mona Campus to launch the long awaited Masters in Taxation programme in 2012.
Moreover, the thrust towards positioning COTA as a prominent policy advisory body to the Caribbean
Community will be advanced with the operationalisation of the COTA Technical Working Group which
will bring together tax experts from throughout the Community to advise on regional tax issues. This is
indicative of COTA’s long held view that the skills and expertise to solve our technical problems reside
in our tax administrations.
Another initiative which will be rolled‐out shortly is the CARICOM Online Tax Database – a new
resource for information gathering and dissemination on CARICOM Tax Systems. Maintenance of the
database will require the support and cooperation of all tax administrations. The CARICOM Secretariat
therefore looks forward to your usual response.
We should also be reminded that the publication of our Newsletter is a collaborative venture
dependent on the support and inputs from all Member Tax Administrations. In this regard, Member
Tax Administrations are urged to notify the Secretariat (firstname.lastname@example.org) of the names and contact
information for their respective Correspondents and provide regular updates and/or copies of internal
newsletters in order to enhance the content of the COTA Newsletter.
COTA News Page | 1
Executive Council Desk
The Thirty-Fourth Meeting of the
COTA Executive Council was held at the
Inland Revenue Department, Barbados
from 20‐21 April 2010. The Meeting
was chaired by Ms Marilyn Ordonez, the
then Acting Commissioner of the Income
Tax Department, Belize. Other Members
of the Council in attendance were Ms.
Sabina Walcott‐Denny, Commissioner
and Mr. Anderson Padmore, Chief
Management Accountant, Inland Revenue Department, Barbados; Ms. Sylvia Moses, Commissioner, Inland
Revenue Department, British Virgin Islands; and Mr. James Charles, Comptroller, Inland Revenue
Department, Saint Lucia. The Meeting was facilitated by Ms. Evelyn Wayne and Ms. Carmen Sukhoo‐Pertab
from the CARICOM Secretariat.
On this occasion, the Council focused on the plans for the COTA 21st General Assembly and Technical
Conference and reviewed the revised draft of the proposed COTA Strategic Plan 2011‐13 as well as the
status of projects comprising the COTA Work Programme. Consultations were held with the CARTAC Tax
Administration Advisers on the priorities for the regional tax programme.
The Government of Barbados via the Inland
Revenue Department hosted the COTA 21st
General Assembly and Technical
Conference during the period 1215
July 2010. The venue was the Accra Beach
Hotel and Resort situated in Rockley on the
lively south coast of Barbados. There were
25 delegates representing tax
administrations in 14 CARICOM territories
and several representatives from regional
and international organizations. The
Opening Ceremony on the morning of 12th
July included remarks by Ms Sabina
Walcott-Denny – Commissioner of Inland
Revenue, Barbados and Host; Ms Marilyn Ordonez ‐ Commissioner of Income Tax Belize and the President
of COTA and the Representative of the CARICOM Secretariat. The Feature
Address was given by the Hon. Darcy Boyce, Minister of State, Ministry
of Finance, Investment, Telecommunications and Energy. Minister Boyce
welcomed participants to Barbados and stressed the importance of tax
regimes in the Caribbean becoming more efficient in tax collection given the
current testing financial and economic climate. During the address, Senator
Boyce stated ‐ “Tax Administrators must therefore come together to find
solutions for the many difficulties. I encourage you to analyse the challenges, but
you must also highlight the successes, and learn from each other in order to improve your collections”.
COTA News Page | 2
A Presentation was made to the Winner of the Second COTA
Essay Competition – Ms. Jeneé Williams, student of the
Washington Archibald High School in St Kitts and Nevis.
Awards of appreciation were announced for the following
retirees who had served on the COTA Executive Council:
Mr. Carlyle (Carey) Thompson ‐ Former Tax Adviser to the
Secretary‐General of the Caribbean Community and Executive
Secretary of COTA, Ms. Marva Lee ‐ Former Tax Adviser to the
Secretary‐General of the Caribbean Community and Executive
Secretary of COTA, Mr. Eric Eusey ‐ Former Commissioner of
Inland Revenue, Belize and Member of the Executive Council of
COTA, Mr. Rawle Adimoolah ‐ Former Commissioner of Inland Revenue, Trinidad and Tobago and
Member of the Executive Council of COTA.
The Opening Ceremony concluded with a beautiful cultural presentation from the Choir of Bayley’s
Primary School. The Vote of Thanks was given by Mr. James Charles, Comptroller, Inland Revenue
Department, St Lucia and Immediate Past President of COTA.
The Keynote Address was delivered by the Dr. Wendell Samuel, Representative of the International
Monetary Fund for the Eastern Caribbean. Dr Samuel’s address entitled ‐
Economic Transformation in the 21st Century and Implications for Tax
Administration – provided an overview of recent economic developments in
the international Economy along with their implications for tax administrators
in the Caribbean. In particular, the following views resonated with
Participants – “… one thing is certain, the global economy that emerges at the end of
this recession will be far different from the one that went into the recession. This is
part of what Schumpeter calls the “creative destruction” that takes place during a deep
recession. Obsolete industries are shed and the new industries emerge from the dust of the declining ones. The global
economy of the future is likely to lay emphasis on alternative energy sources, pollution reduction and protection of the
global environment. …The tax system of the future would have to provide the right incentives for the green economy
that emerges. As one author puts it, the tax system would shift toward taxing ‘bad’ not ‘goods’, (that is) tax to
conserve the common wealth (water, clean air) rather than taxing private wealth”.
The Delegates participated in 3 days of deliberations on a variety of tax issues within the context of the
Theme ‐ Challenges and Successes of Tax Administrations in Maintaining Efficiencies in a time of
Global Economic Transformation. The Conference received ten (10) lead presentations and related
commentaries on a number of topics from regional tax administrators and guests during 5 technical
sessions. The presentations and Summary of Recommendations and Conclusions can be found at
Ms. Marilyn Ordonez - President of COTA, presented the
President’s Report at the Administrative Session of the
COTA which was held on the afternoon of 15 July. Ms
Ordonez reviewed COTA’s work programme highlighting
achievements and areas for improvement. Delegates
discussed the Report, the progress of COTA’S work
programme including the draft of the COTA Strategic Plan for
2011‐2013. Delegates also elected a new Executive Council
with Barbados as President to spearhead the activities of
COTA over the next two years.
COTA News Page | 3
The Social Programme was as expected – superlative!!! Delegates were treated to the delights of Barbados
throughout the Conference commencing with a Reception on the evening of 11th July and including an
Integration Day Island Tour and culminating with an evening cruise and dinner party on board the
COTA at Harrison's Cave Yes, Tax Administrators can dance!!!
Many thanks and appreciation to Barbados for a well planned and organized General Assembly
& Technical Conference 2010!!!
The 35th and 36th Meetings of the COTA Executive Council
were held in December 2010 and May 2011 in Belize and
Guyana respectively. The Council met under the chairmanship
of the new President – Barbados represented by Mr. Anderson
Padmore – Chief Management Accountant of the Inland Revenue
Department. As usual the Council reviewed the activities
conducted by the CARICOM Secretariat on behalf of COTA
during both Meetings and sought to chart new directions for a
more dynamic COTA. In this regard, the 36th Meeting approved
the Revised Strategic Plan for 2011‐2013 and began to design a
new Work Programme for COTA.
Of course, both in Belize and Guyana, the Executive Council was treated with superb hospitality by the Host
Tax Administration. In Belize, the opportunity was taken to present Mr. Eric Eusey with his appreciation
award during a social function. In Guyana, the Executive exchanged views with members of the West
Indies Cricket Team.
Farewell and Happy Retirement Carmen…
After 28 years of sterling and dedicated service, Ms. Carmen Sukhoo-Pertab retired from the CARICOM
Secretariat on 9 April 2011. Carmen joined the staff of the Secretariat in
1983 and served for many years as Administrative Assistant in the Trade
and Economic Integration Directorate with specific responsibility for
COTA matters. Carmen has been a valued and critical member of the
COTA family and has embodied a fountain of information on all things
COTA. We will miss Carmen for her tremendous organizational skills,
excellent use of initiative and her general sense of fun.
Carmen is wished continued success in her future endeavours by both the Executive Council and
Membership of COTA as well as the Management and Staff of the CARICOM Secretariat.
COTA News Page | 4
Congratulations to Ambassador Irwin LaRocque…
The CARICOM Secretariat has a new Secretary‐General. Ambassador Irwin LaRocque assumed office on
15 August 2011 having previously served the Community as Assistant Secretary‐
General, Trade and Economic Integration since 2005. CARICOM Chairman ‐ Honorable
Dr. Denzil Douglas, Prime Minister of St. Kitts and Nevis, is quoted as stating: “My
colleague Heads of Government and I believe that Ambassador LaRocque possesses the requisite skills of
visionary leadership, courage and commitment required to guide the Community at this time of change
CARICOM Online Tax Database…
The CARICOM Secretariat will shortly launch the CARICOM Online Tax Database. The database will
provide comparative information on the taxation regimes in all CARICOM Member and Associate States.
Such information includes but is not limited to a breakdown of the structure of the tax regimes and tax
revenue statistics in each country which provided data during the construction of the Database. The
Database also contains information on the legal basis, assessment base, main exemptions, applicable rate
or rates, economic and statistical classification, revenue generated by each tax type, along with information
on Member states’ tax codes and regulations as well as settled tax cases.
The CARICOM tax database will provide information for decision‐making and facilitate tax cooperation,
coordination and harmonization essential to the smooth functioning of the single economic space.
Intra-CARICOM Double Taxation Agreement…
The CARICOM Secretariat will be convening a Meeting of Heads of Tax Administrations to review Article 24
of the Intra-CARICOM Double Taxation Agreement during the last quarter of 2011. The review is intended
to result in an amended Article 24 on Exchange of Information in accord with international standards.
The Global Forum on Transparency and Exchange of Information for Tax Purposes has reported that
COTA Members have signed 274 Tax Information Exchange Agreements (TIEAs), to date.
COTA Members and Number of Signed TIEAs
Member TIEAs Member TIEAs
Anguilla 17 Dominica 14
Antigua & Barbuda 20 Grenada 15
The Bahamas 27 Jamaica 1
Barbados 4 Montserrat 11
Belize 14 St Kitts & Nevis 20
Bermuda 28 St Lucia 18
British Virgin Islands 22 St Vincent & Grenadines 21
Cayman Islands 25 Trinidad & Tobago 1
Turks & Caicos Islands 16
COTA News Page | 5
(All Values are stated in the National Currency)
Antigua and Barbuda
Relief measures introduced by the Government were continued in 2011 and include –
Personal income tax deductions in respect of interest paid on residential mortgages; contributions
paid into approved pension schemes; health insurance premiums; and tuition payments on behalf
of children pursuing university studies;
Reduction of the stamp duty on mortgages from $6 per thousand to $4 per thousand;
Reduction of the mortgage interest rate by reducing the corporate income tax payable by banks
offering eight per cent (8%) or less. A further reduction is provided in the legislation for banks that
offer a mortgage rate of seven per cent (7%);
Reducing the combined stamp duty on the transfer of property valued at $500,000 or less from a
parent or grandparent to a child or grandchild from ten per cent (10%) to two per cent (2%); and
Removing the stamp duty on the discharge of charge for residential property, which means that
once a person has paid his residential mortgage in full, he will no longer have to pay stamp duty in
order to retrieve his land certificate.
Among the revenue measures announced by the Hon. Minister of Finance in the 2011/12 Budget
Communication issued on 25 May 2011 were –
The intention to eliminate the $7 air ticket tax applicable on tickets sold in The Bahamas for
international travel and to merge same into the existing $20 departure tax. Effective as of 1
October 2011, the combined air departure tax will be levied at a rate of $25 per ticket;
Amendment of the Stamp Act to clarify that the exemption for the transfer of mortgages between
lending institutions applies to all such transfers and not only those held by first‐time homeowners;
A one hundred per cent (100%) waiver of the applicable surcharge for a period of six (6) months to
encourage the payment of arrears in respect of commercial property taxes.
The Hon Minister of Finance and Economic Affairs announced the following tax changes in the 2011
Budget Statement on 16 August 2011 –
The fee for the late filing of income tax returns will be increased from $100 to $500 to encourage
Business losses can no longer be offset against employment income for the computation of tax
payable with effect from tax year 2011;
COTA News Page | 6
Country Reports contd.
Effective 1 September 2011, all sporting vehicles, equipment and gear temporarily imported for the
sole purpose of competitive activities will be zero‐rated for VAT purposes;
The existing tax bands for residential properties will be adjusted as follows while maintaining the
current rate structure for effective tax year 2011/12 –
Residential Rates Property Values
0% on first $190,000 $150,000
0.1% on next $310,000 $250,000
0.45% on next $750,000 $600,000
0.75% on excess of $1,250,000 $1,000,000
Effective tax year 2011/2012, changes to the Commercial Land Tax were as follows –
Land tax rebates will be based on the tax demanded rather than the site or improved values of the
A rebate of no more than fifty per cent (50%) on the land tax demanded for that year to be
awarded for properties which can prove that they have engaged directly in the manufacturing
activity and those which have been certified by the Division of Energy to be engaged in the
production/manufacture of solar energy;
Awardees of the rebate will be required to have a tax clearance certificate from Inland Revenue
Department and VAT office; and
Land tax rebates will be granted on a current basis except for entities in the hotel sector and
restaurants which can pay in the last quarter to qualify for the rebate.
In the 2011 Budget Statement, the Government announced that there will be no new taxes, levies or
other impositions. However, the Government sought to reform the Land Transfer Tax by adjusting the
fees applicable to gifts of real property between parent and child through the –
Reduction of Stamp Duty from four per cent (4%) to two per cent (2%); and
Removal of the Transferor’s fee.
On 14 January 2011, the Hon. Minister of Finance presented a tax free budget to Parliament and
announced the Government’s intention to remove the income tax paid on severance pay to workers
who have lost their jobs as a result of the impact of the ongoing global economic crisis on the island. The
Income Tax Act will be amended to waive personal income taxes otherwise payable on income earned by
an employer where that income is received by way of severance to such an employee whose relationship
with the employer is brought to an end on account of the current economic crisis. The amendment will be
retroactive to September 2008.
COTA News Page | 7
Country Reports contd.
The 2011 Budget Statement which was delivered by the Hon. Minister of Finance on 17 January 2011
included the following measures –
The personal income tax allowance will be increased from the current level of $420,000 per
annum to $480,000 per annum with effect from year of income 2011;
The corporation tax rate for commercial companies except telephone companies will be
adjusted from forty‐five per cent (45%) of chargeable profits to forty per cent (40%) of chargeable
profits with effect from year of income 2011;
The corporation tax rate for noncommercial companies will be adjusted from thirty‐five per
cent (35%) of chargeable profits to thirty per cent (30%) of chargeable profits with effect from year
of income 2011.
Effective 1 May 2011, Tax Administration Jamaica became a new Organisation. This Organisation
will be a consolidation of three (3) Tax Departments – Inland Revenue Department, Taxpayer Audit and
Assessment Department and the Tax Administration Services Department which have now ceased to exist.
The new Organisation ‐ Tax Administration Jamaica (TAJ) will be responsible for administering
“domestic taxes” that is – taxes excluding import tax/customs duty, which is classified as an international
tax. The Customs Department (CD) will no longer be a part of Tax Administration as it is scheduled to
become an executive agency. The Taxpayer Appeals Department (TAD) will also cease to be a part of Tax
Administration on the specified date as that entity will become a division under the Ministry of Finance
and the Public Service.
In order to re‐engineer its operations to meet the demands of the dynamic business environment, Tax
Administration Jamaica has unveiled a 3year National Compliance Plan (NCP) designed to boost
compliance and facilitate the efficient delivery of tax administration services to the public. Strategies to
improve compliance levels include –
Develop a revised risk management system to identify and prioritise entities for audit collection
enforcement action and taxpayer education;
Develop a debt management framework including a debt write‐off policy;
Review and draft legislation to support compliance efforts; and
Introduce a phased compulsory filing programme.
Tax Reform for Jamaica ‐ In May 2011, the Government tabled a Green Paper on wide‐ranging changes
to Jamaica’s tax system. The introduction to the Green Paper stated that – “the Government has committed
to implementing tax reform in an incremental way to achieve the objectives of: simplicity, equity, and
broadening of the base; improved compliance; growth and competitiveness arising from policy
certainty and confidence in the economy. Most importantly, the measures must meet the revenue
demands of the Budget while maintaining macroeconomic and social stability.
COTA News Page | 8
Country Reports contd.
The 2011 Budget Statement proposed a reduced rate of taxation for most individuals through a new
banded system of taxation whereby the poorest will pay less as follows –
$ 0 – 15,000 @ 15% $ 0 – 20,000 @ 5%
$15,001 – 20,000 @ 15% $ 20,001 – 25,000 @ 15%
$20,001 – 26,000 @ 25% $ 25,001 – 30,000 @ 25%
$26,001 and over @ 30% $ 30,001 – 150,000 @ 30%
$150,001 and over @ 40%
The personal allowance of $15,000 will be retained but the category of EC$ 0 – 20,000 will ensure that
every employee in Montserrat files a tax return.
St. Kitts and Nevis
The Government announced the restructuring of the Housing and Social Development Levy during the
2011 Budget Address delivered on 14 December 2010 as follows –
Annual Income Tiers Proposed Current
Employer Employee Employer Employee
Contribution Contribution Contribution Contribution
1 – up to $13,000 3% Exempt 3% Exempt
2 – $ 13,000 78,000 3% 3.5% 3% 3%
3 – $ 78,000 96,000 3% 10% 3% 8%
4 – $ 96,000 and over 3% 12% 3% 10%
Among the 2010 Revenue Measures announced by the Government were –
Removal of exemption on payment of withholding tax on interest under the Third Schedule of the
Income Tax Act. Interest payable to NonResidents will now be subject to withholding tax at the
rate of 15%;
Adjusting the Stamp Duty regulations regarding the conveyance, transfer, sale or otherwise of the
debenture stock, debt or shares of any company or corporation ‐ the stamp duty will be calculated
on the greater of ½ of 1% of net asset value and the conventional stamp duty computation;
Amending the property tax regime to an open market valuation system for assessing residential
properties for property tax as against the existing system based on annual rental values whereby –
the method of assessment of residential properties for property tax will be the open market
valuation at a rate of 0.4% of 1%; and
The rate of property tax on commercial properties will increase from 0.25% to 0.4% of 1%
based on open market value.
COTA News Page | 9
Country Reports contd.
Trinidad and Tobago
The following tax measures were adopted by the Government with effect from 1 January 2011 –
Amendment of allowances/deductions with regard to Income Tax in the following
First Time Home Owners Mortgage Interest of $18,000 per household for the first 5
years from the date of acquisition.
Children’s Life Fund Total contribution up to 15% of Total Income for the year of
CNG Kits and Cylinders 25% tax credit on cost of conversion of motor vehicle up to a
maximum of $10,000.
Solar Heating System 25% tax allowance on value of solar heating system up to a
maximum of $10,000 acquired for use by the household.
Employee Stock Ownership Tax on proceeds limited to initial investment.
Plan (ESOP) Limit on annual bonus distribution to be reduced from 40% to
Amendment to the Corporation Tax regime in the following categories –
Art and Culture Allowance increased to a maximum, of $2,000,000
Children’s Life Fund Total contribution up to 15% of Total Income for the year of
Energy Audits Tax allowance of 150% of costs.
COTA Coming of Age Delegates at Reception and Viewing Barbadian Pottery
COTA News Page | 10
Keep in Step
Economic Transformation in the 21st Century and Implications for Tax Administrations
Dr Wendell Samuel – IMF Resident Representative, Eastern Caribbean
(Excerpt from Keynote Address to COTA 21st General Assembly and Technical Conference)
The recovery of the global economy appears to be On top of the effects of the global crisis, the collapse
stronger than predicted a year ago with distinct of the Trinidad-based CL financial group, due to
characteristics in different countries in the world: regulatory failure has created a Caribbean-wide
strong growth in production and some signs of tsunami that threatens to wipe out billions of dollars
recovery in domestic demand are appearing in in savings in the Region.
advanced economies, while a strong rebound in trade
and domestic demand has led a dynamic recovery of So how do these developments affect tax
emerging markets. administration? How do they make your lives more
challenging, more interesting? The first is that the
Downside risks, however, have certainly not faded recession has exacerbated fiscal imbalances in most
away, as the latest experience in Europe shows. of the Caribbean countries. Fiscal deficits are rising
Developments in recent months attest to the as revenue declines and government spending
volatility of financial conditions and the increases to try to offset the impact of the recession
uncertainties of the recovery. Downside risks have on growth and employment. Like in the advanced
risen, particularly from concerns over fiscal economies the larger deficits have pushed up public
sustainability in advanced economies, which today debt levels significantly. In the ECCU countries, the
have public debt levels close to what they were public debt is estimated to be about fifteen per cent
following the costly financing of World War II. The (15%) of GDP higher in 2011 compared with 2008.
increase in public debt is related to the bailout of the A similar pattern holds for other Caribbean countries
financial sector and the fiscal stimulus to cushion the to a greater or lesser extent.
decline in the economy. There is some concern that
large adverse spillover effects could spread from The second is the difficulty in squeezing more
government finances to the financial system, and to revenue out of a declining tax base, even as the
economic activity in all G-20 economies. demand for more revenue mounts. I know that
many of you are dreading the call from the Minister
The Caribbean Region mirrors the global patterns in of Finance, asking you to perform what amounts to
that a multispeed recovery is developing within the the miracle of the three loaves and two fishes. In
Region. Those countries that rely largely on normal times, we expect that tax revenue would
commodity exports (Trinidad and Tobago, grow one for one with national income (a tax
Suriname, Guyana) may expect, in general, an easier elasticity of 1). However during the recession we
and stronger rebound in economic activity than have seen revenue decline by factors much larger
those depending largely on tourism—due to the than one as the economy contacted. Recovery of
inertia in unemployment levels in advanced revenue in such circumstances is likely to be slow and
economies. maintaining compliance levels in situations where
both corporate and individual tax payers are hurting
Recession-hit consumers in these countries are still is likely to be a huge challenge. Tax administration
guarding carefully what remains of their resources, is not a job to be envied in these times.
following the meltdown in the stock market that
destroyed many trillions of dollars in wealth This
reality implies achieving sustainability will need to
be designed based on country-specific circumstances.
And, as in the advanced economies, it will be critical
for countries facing high fiscal deficits and public
debt to implement decisive adjustment in the short
run as well as comprehensive medium-term fiscal
COTA News Page | 11
Tax Court Case - Trinidad and Tobago
In the matter of Board of Inland Revenue (BIR) vs. R2K Engineering Company Limited.
The Facts ‐ The defendant – R2K Engineering Company Limited is a company that was incorporated
under the provisions of the Companies Act 1995. The Company submitted four VAT returns to the BIR
between October 2004 and June 2005. Information was received from an anonymous source alleging
that the company was evading taxes by under‐reporting the VAT on Sales/Income on the VAT Returns.
The Criminal Tax Investigations Unit (CTIU) conducted an analysis of the VAT amounts and compared the
Output Tax as reported. This comparison revealed that Output Tax was under‐reported in the VAT
returns of R2K Engineering Company Limited. After further investigations, the CTIU proceeded to
charge the Directors and the Company for the four (4) offences under Section 56(b) of the VAT Act No. 37
of 1989 in July 2007.
The Judgement ‐ When the matter was called before Magistrate Marcia
Murray in the Port‐of‐Spain First Court, one of the Directors of the
Company pleaded guilty to all 4 charges. In addition to the amounts
repaid by the Company to the sum of $853,309.42, R2K Engineering was
also ordered to pay $5,000 for each offence to the value of $20,000 to be
paid within 6 weeks or in default, 3 weeks simple imprisonment.
Culture Cross-Point --from Barbados….
Nuh name, nuh blame, nuh lock up.
If no names are called, no one can be accused.
A eyeful en' a bellyful.
Seeing is one thing, having it in your possession is another thing.
Cat luck en' dog luck.
What one person may get away with, may cause problems for another.
Dead man can't run from ‘e coffin.
It is impossible to run from your responsibilities.
De sea ain't got nuh back door.
The sea is not that safe a place; take every precaution necessary.
We Welcome Your Comments and Contributions …..email@example.com
COTA News Page | 12