Shaw to get aggressive with tax dodgers

[Lazie]

Finance Minister Audley Shaw, arguing that the government is losing billions of dollars in revenues annually due to non-compliant taxpayers, has vowed that his ministry will be taking aggressive measures to collect money from persons habitually avoiding the tax net.

Speaking at the Jamaica Chamber of Commerce (JCC) Annual Customs Seminar, held at the Hilton Hotel in Kingston yesterday, Minister Shaw highlighted that the nation's tax compliance rate is dismally averaging in the "35 to 40 per cent region".

He said that in order for the state to implement, among other needs, adequate road repairs, education and healthcare services, it will need to drastically increase compliance in certain areas of the economy where there is significant haemorrhage.

"We have already identified several areas of significant revenue leakage and loss in this country," said Shaw. "We are not talking hundreds of millions of dollars in revenue loss, we are talking about multibillions of dollars of revenue loss on an annualised basis."

One of the challenges faced by the country is the fact that the Financial Investigation Unit in the Ministry of Finance is severely under-staffed. According to Shaw, the division is operating at a mere 65 per cent of its personnel capacity.

"There are difficulties in the Financial Investigation Division in the ministry," said Shaw. "We have an establishment of 114 workers but we only have 75 on staff right now....we are short of workers in the critical area of financial investigation."

The minister, while stressing the need for a joint effort among private and public sector interests in protecting the nation's revenues, said that the government will soon be making a major announcement on the specific measures that it will be taking.

"Collecting the revenue that is due to government and we the citizens of Jamaica, is going to require our collective will to do so," said Shaw. "We are going to do our part and very shortly I am going to be making a major announcement concerning the plan of this government to take aggressive steps to collect the revenue that are due."

Tax reform, was highlighted by Shaw, as one of the major pillars on which the government will restructure the Jamaican economy to achieve growth by increments of six to eight per cent per year. The minister said that his ministry is planning on reducing tax rates overtime.

"We are not talking about how we can increase taxes but how we can streamline the taxes to make it more user friendly," noted Shaw. "My concentration is not going to be about increasing taxes upon those who are complying with law, it is going to be on enhancing collection based on the existing tax system.

"Overtime, if you significantly increase your tax enhancement it means that you will be able to afford to reduce tax rates over time," he said.

http://www.jamaicaobserver.com/magaz...AX_DODGERS.asp

[Gamma]

i think he will find the MOF to be one of those delinquents.

[Karl]

Finance Minister Audley Shaw, arguing that the government is losing billions of dollars in revenues annually due to non-compliant taxpayers, has vowed that his ministry will be taking aggressive measures to collect money from persons habitually avoiding the tax net.

Speaking at the Jamaica Chamber of Commerce (JCC) Annual Customs Seminar, held at the Hilton Hotel in Kingston yesterday, Minister Shaw highlighted that the nation's tax compliance rate is dismally averaging in the "35 to 40 per cent region".

He said that in order for the state to implement, among other needs, adequate road repairs, education and healthcare services, it will need to drastically increase compliance in certain areas of the economy where there is significant haemorrhage.

"We have already identified several areas of significant revenue leakage and loss in this country," said Shaw. "We are not talking hundreds of millions of dollars in revenue loss, we are talking about multibillions of dollars of revenue loss on an annualised basis."

One of the challenges faced by the country is the fact that the Financial Investigation Unit in the Ministry of Finance is severely under-staffed. According to Shaw, the division is operating at a mere 65 per cent of its personnel capacity.

"There are difficulties in the Financial Investigation Division in the ministry," said Shaw. "We have an establishment of 114 workers but we only have 75 on staff right now....we are short of workers in the critical area of financial investigation."

The minister, while stressing the need for a joint effort among private and public sector interests in protecting the nation's revenues, said that the government will soon be making a major announcement on the specific measures that it will be taking.

"Collecting the revenue that is due to government and we the citizens of Jamaica, is going to require our collective will to do so," said Shaw. "We are going to do our part and very shortly I am going to be making a major announcement concerning the plan of this government to take aggressive steps to collect the revenue that are due."

Tax reform, was highlighted by Shaw, as one of the major pillars on which the government will restructure the Jamaican economy to achieve growth by increments of six to eight per cent per year. The minister said that his ministry is planning on reducing tax rates overtime.

"We are not talking about how we can increase taxes but how we can streamline the taxes to make it more user friendly," noted Shaw. "My concentration is not going to be about increasing taxes upon those who are complying with law, it is going to be on enhancing collection based on the existing tax system.

"Overtime, if you significantly increase your tax enhancement it means that you will be able to afford to reduce tax rates over time," he said.

http://www.jamaicaobserver.com/magaz...AX_DODGERS.asp

True...but the Minister will find that as you 'push' in on one area (some areas) 'bulges' occur in other areas.

mmmm? passing on of this increased cost of doing business to consumers...increased costs/prices...or failures/folding of some businesses???? ...or...????

[Sickko]

Going after people that owes the government say $100,000 or so in back taxes will only go so far..the governmnet needs to go after those who owes in the millions.

I knmw some one wh worked in tax compliance in the Min of Finance and she says she was shocked when she found out who it was that owed the most taxes...we are taking some times up to $250m.

But this governmnet cannot go after them as it was some of the people they owe for financing the elections...go figure.

[Assasin]

Something have to be done though. The way they could do it is cut the rate of taxes and then go after them. Instead of trying to collect 250 mill then you cut the rate by half and instead you collect 125. It is better to collect half than nothing and everybody get a deal.

I say cut the rate and then better enforcement.

[Islandman]

Me proud a you bredren. Advocating tax cuts instead of tax increases? Heh heh.

Maybe one day I will convince you that the Bush tax cuts were actually a good thing.

[Sickko]

The problem is that these taxes were already incurred and have been growing interest all these years.

I cnat advocate giving the rich tax breaks then hauling people in front of the judge when they owe US$1,500 in Customs duty.

Not that either case should not be dealt with but the rich with big friends will always get away with murder.

[Islandman]

Why is that a problem? As Assasin says, you renegotiate the amounts owed and insist that they pay the reduced amount. Seaga did this with a great deal of success in the '80s with the "Avoid the back-tax axe" campaign.

Already you are accusing this govt of not collecting from the big man when in fact the previous so-called "for the poor man" govt did not collect from these same big men.

[Assasin]

In Jamaica case if they have a lower tax rate and strict enforcement they will get in more money in revenue and that should discourage the underground economy somewhat and help get rid of some of the dons who get protection money.

Jamaica have one of the highest tax rate in the world.

[Islandman]

Agree 100%, and most of the tax is not put to any productive use. If not outright stolen it is used to "run wid it" and things of that nature.

The US and other developed countries may not be as bad but believe me, still quite a lot of tax revenue is wasted on pork-barrel projects like the famous Alaska Bridge to Nowhere and the Boston Big Dig.

[Mosiah]

Was the Big Dig a pork-barrel project? Didn't think it was. I seem to recall it was a very necessary project but just happened to blow its budget and time schedule clean clean!

[Islandman]

It wasn't pork-barrel, more a case of gross project mismanagement and quite a bit of corruption.

[Assasin]

there is a lot of waste in the US too.

The government cut some of these tax rates instead of giving "priviledge" to certain investors or industries and make a more even playing field.

Another alterantive is to get rid of most other taxes and make consuption taxes higher with the execption of basic food items and housing. I know the world trade might not approve of this one but the underground economy have to be put in line and when I talk about underground I am not thinking drugs and mafia instead the dons and all the small business people such as higler, hair dressers, cook shop, taxi loader man etc have to pay a smalls as well.