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VAT Will ‘Make a Mockery of the Law’

vatA culture of low tax compliance makes it “irresponsible” to consider implementing a value-added tax (VAT) system which will only fail to be adhered to, and “make a mockery” of the rule of law, a businessman has argued.

In its most recent report on the Bahamian economy and government’s fiscal policy measures, the International Monetary Fund (IMF) suggests that a culture of poor tax compliance in this country has drawn into question the government’s ability to generate the amount of revenue it has forecast from VAT.

Rob Myers, co-chair of the Coalition for Responsible Taxation, noting comments made by the IMF, said that this seems to be an area where “the government is not listening”.

Agreeing with the IMF’s assessment of the impact on VAT, he suggested that non-compliance with VAT will come about not only due to evasion, but simply due to a lack of resources, particularly on the part of smaller businesses, to keep up with its requirements.

Posted in Business

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