Published by Neil Hartnell, Tribune Business, July 3rd, 2024
The Bahamian private sector last night voiced optimism that the Government’s tax compliance Task Force will employ “less threatening” methods while urging it to “reconsider” accepting cash payments.
The Bahamas Chamber of Commerce and Employers Confederation (BCCEC), in a statement praising the Prime Minister’s move to halt the practice of machine gun-toting officers entering business premises, warned that taking tax payments in cash could still cause “dangerous situations” and expose both companies and the Revenue Enhancement Task Force to criminal activities.
“The Chamber was happy to see the Prime Minister move to put an end to heavily-armed officers accompanying the tax enforcement unit as they enter businesses to carry out inspections. We hope that the agencies involved will seek less threatening ways to ensure that the payments due are submitted as required,” the Chamber said in response to Tribune Business inquiries.
#“We would urge the unit to reconsider the collection of actual cash during any inspection as this could lead to dangerous situations given the level of crime in our country today. The Chamber is open to engaging any of the authorities involved to discuss how the business community can assist with the efficient collection of their revenue.”
The businessman, whose video of the Task Force entering his retail store sparked the private sector and public backlash that led to the Government altering its approach, yesterday hailed Philip Davis KC for taking “the necessary corrective action” although he voiced mild disappointment that this had not been implemented sooner.
Brent Burrows II, CBS Bahamas’ vice-president of retail and sales, told Tribune Business: “I’m glad to see the Prime Minister stepped in and taken ownership. It sounds like he’s going to implement the necessary corrective action. It appears to be a positive step forward.
“I’m glad he commented on it. It’s a bit of a shame I guess that it took a week for him to step in and, in the meantime, it’s been escalated by the Task Force itself. It’s a good move in the right direction.”
Asked whether the changed Task Force tactics should have gone further, given his and the business community’s widespread belief that the Government and its revenue agencies already possess and have access to the documents and information being sought, Mr Burrows said more clarity is still required.
“There’s more clarification needed on cash payments. In his [Mr Davis] comments he alluded to that,” Mr Burrows said. “There’s an opportunity here to really develop a good relationship with the business community and let me help you out if you have concerns over non-compliance and need help to navigate the new laws. Get everybody in the same room and get things done.
“If this goes in a different direction that’s more helpful than hostile, hopefully they take that into consideration and go about it that way. We’ll see where it goes and hopefully it moves in the right direction. I do appreciate him [the Prime Minister] stepping in and doing what’s positive for the business community.”
Commander Bertram Bowleg, chairman of the Government’s Maritime Revenue Enhancement Task Force, and who is heading the initiative, declined to comment when contacted by Tribune Business yesterday. “I have no comment. I have no comment. The Prime Minister has already spoken,” he said.
Mr Davis’ announcement of adjusted Task Force tactics did not come as a surprise. His spokesman last week said the approach was being “reviewed” following widespread private sector outcry over machine gun-toting officers entering businesses for tax compliance check-ups, which has been variously slammed as “complete overkill”, “barbaric” and for treating companies as if they are all common criminals.
Tacitly conceding that Task Force teams have been too aggressive in their approach, the Prime Minister told the House of Assembly on Monday: “It was the enforcement unit. They thought they had to show force to enforce but, in this instance, I have expressed that there is a better way as you [the Opposition] have pointed out, and the better way will be employed going forward.
“I don’t expect to see scenes that we have seen going around in the viral of [armed] men going into businesses unless it’s a necessary escalation of issues that might apply. In some instances, the advice I was given was that the armed persons were present because they were collecting cash at some establishments, and they were there for the purposes of protecting the cash as they were going on.
“But it just spilled over into other areas. There will be a demarcation where they are collecting cash, and they need security for the cash, or whether they’re just going to make inquiries about compliance. Those demarcations have been, are now being, implemented,” Mr Davis continued.
“We don’t expect to see that unless, as I said, it’s a circumstance where cash is being collected from a business establishment or, in cases where there’s some escalation of issues between the inquirers and the business places. As I said, there’s a better way, and the better way will be employed.”
Mr Davis seemed to imply that armed officers will no longer automatically march into businesses alongside revenue officials, and instead will largely remain outside the premises unless there is a perceived threat to the Task Force’s safety or they are needed to secure cash payments.
Commander Bowleg previously explained that the Task Force’s activities are part of a “door-to-door” tax enforcement strategy to ensure companies are compliant with all taxes. Signalling that this is the next step, following the recent voluntary compliance exercise staged by the revenue agencies, he refuted suggestions that its teams were “heavy handed” or “aggressive” in their approach.
Asserting that officers were not pointing their weapons aggressively at customers or staff, he pointed out that it was standard practice for law enforcement to carry arms in the modern Bahamas. Commander Bowleg said the presence of armed officers was necessary to protect tax officials given the possibility that some delinquent companies may react negatively to demands for payment.
“We are doing on-the-spot compliance,” Commander Bowleg said. “You can pay now. We’re coming to you and getting you straight and compliant. We’re trying to reach out more. We aren’t trying to shut down nobody. We’re not trying to inconvenience anybody. We’ll have to do another voluntary compliance in my opinion. We want people to come in. We will run another voluntary compliance week shortly in a couple of weeks.”
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