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Director General of the Tax Administration Department (TAD), Viralee Latibeaudiere, has levelled heavy criticism on the Government, claiming attempts by her department to collect revenue are being undermined by the State's refusal to provide it with the requisite tools. Latibeaudiere, who appeared before Parliament's Public Administration and Appropriations Committee (PAAC) yesterday, suggested it was unfair of the Government to ask tax collectors to bring in revenue on behalf of the State when the central Government is not giving the collectors the financial backing to make them more efficient.
"We are under severe stress in tax administration. At the same time, we are required to collect more and more money every day," Latibeaudiere said.
Not enough money
She told the committee that no money was provided in the last budget for the purchase of computers or other equipment, or to pay additional cashiers to collect revenue on behalf of the State. She also said the agency was not given enough money to do repairs to its computer system so there is "a compromise".
Committee member Phillip Paulwell said the situation was unacceptable, and promised that the committee would take up the issue on Tuesday when the first Supplementary Estimates are debated by the Standing Finance Committee
of Parliament.
Acting PAAC Chairman Fitz Jackson promised that the committee members would be fighting on behalf of the depart-ment for an increased budgetary allocation.
Less burden
"The more efficient you are in collecting revenue is the less burden it will be on those who actually pay," Jackson said.
"As a country, we have a vested interest in making sure that our tax-collection system is efficient and effective," he added.
The first Supplementary Estimates were tabled in the House of Representatives on behalf of Finance Minister Audley Shaw on Tuesday, but there has been no change in the allocation to the TAD.
Shaw, in his contribution to the 2010 Budget Debate, said tax collection was a major priority of the Government. He told Parlia-ment that Cabinet has approved a submission paving the way for the transformation of tax adminis-tration into a "leaner and more efficient entity".
"Following the required legislative changes, the Taxpayer Audit & Assessment Department, the Inland Revenue Department and the Tax Administration Services Department will be merged to form a single domestic Tax Administration Department," Shaw said last April.
However, Latibeaudiere said that while work has commenced in this area, Government has backed Shaw's pronouncements with little money.
"While we are required to collect the revenue due and meet the revenue target and also to meet the IMF (International Monetary Fund) target, we are also required to have a new Jamaica tax administration come April 1, 2011, where we will see the amalgamation of all tax departments except Customs ... . However, the greatest drawback is that there is no money in the budget for the reform project," Latibeaudiere said.
Yesterday, Paulwell said not backing up the policy with the money was counterproductive.
"There is a clear disconnect and I am sure your boss is already aware, but we from this committee will have to strengthen your call," he said.
Latibeaudiere told the PAAC that the TAD now collects more than 210 different fees and taxes, and said only seven of those fees and taxes go into the Consolidated Fund. She said that within the next three years all persons 18 years and over will be required to file tax returns.
"We require a new integrated system. The integrated system has compromised the work carried out by tax administration for a long time. It cannot manage what is required of it. It does not have the functionality to move into the 21st century," Latibeaudiere said.
Paulwell, who is an opposition member of parliament, urged the committee to ensure that the Standing Finance Committee is told of the predicament faced by Latibeaudiere's team.
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"We are under severe stress in tax administration. At the same time, we are required to collect more and more money every day," Latibeaudiere said.
Not enough money
She told the committee that no money was provided in the last budget for the purchase of computers or other equipment, or to pay additional cashiers to collect revenue on behalf of the State. She also said the agency was not given enough money to do repairs to its computer system so there is "a compromise".
Committee member Phillip Paulwell said the situation was unacceptable, and promised that the committee would take up the issue on Tuesday when the first Supplementary Estimates are debated by the Standing Finance Committee
of Parliament.
Acting PAAC Chairman Fitz Jackson promised that the committee members would be fighting on behalf of the depart-ment for an increased budgetary allocation.
Less burden
"The more efficient you are in collecting revenue is the less burden it will be on those who actually pay," Jackson said.
"As a country, we have a vested interest in making sure that our tax-collection system is efficient and effective," he added.
The first Supplementary Estimates were tabled in the House of Representatives on behalf of Finance Minister Audley Shaw on Tuesday, but there has been no change in the allocation to the TAD.
Shaw, in his contribution to the 2010 Budget Debate, said tax collection was a major priority of the Government. He told Parlia-ment that Cabinet has approved a submission paving the way for the transformation of tax adminis-tration into a "leaner and more efficient entity".
"Following the required legislative changes, the Taxpayer Audit & Assessment Department, the Inland Revenue Department and the Tax Administration Services Department will be merged to form a single domestic Tax Administration Department," Shaw said last April.
However, Latibeaudiere said that while work has commenced in this area, Government has backed Shaw's pronouncements with little money.
"While we are required to collect the revenue due and meet the revenue target and also to meet the IMF (International Monetary Fund) target, we are also required to have a new Jamaica tax administration come April 1, 2011, where we will see the amalgamation of all tax departments except Customs ... . However, the greatest drawback is that there is no money in the budget for the reform project," Latibeaudiere said.
Yesterday, Paulwell said not backing up the policy with the money was counterproductive.
"There is a clear disconnect and I am sure your boss is already aware, but we from this committee will have to strengthen your call," he said.
Latibeaudiere told the PAAC that the TAD now collects more than 210 different fees and taxes, and said only seven of those fees and taxes go into the Consolidated Fund. She said that within the next three years all persons 18 years and over will be required to file tax returns.
"We require a new integrated system. The integrated system has compromised the work carried out by tax administration for a long time. It cannot manage what is required of it. It does not have the functionality to move into the 21st century," Latibeaudiere said.
Paulwell, who is an opposition member of parliament, urged the committee to ensure that the Standing Finance Committee is told of the predicament faced by Latibeaudiere's team.
http://www.jamaica-gleaner.com/glean...ead/lead1.html