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Open letter to the honourable prime minister expressing concern about discretionary waiver to Executive Motors
Friday, April 15, 2011
Dear Prime Minister
As the entire country and the media focuses on the circus that the Manatt Enquiry has become, I fear that a most serious matter has largely been ignored or swept aside without sufficient debate, analysis and contemplations on its most serious implications.
I speak of the matter of discretionary waivers which was highlighted by the Gleaner in an article published on Monday March 14, 2011. Even though the writer did not make it the subject of the article it revealed that of just over J$300 million in discretionary waivers granted by the Ministry of Finance, one company, Executive Motors Ltd. (registered company no. 20,719), received the lion share. This company, majority owned by Desmond Panton, received a waiver of $183,739,735.66 for GCT liabilities outstanding from 2000-2004. I must point out that this waiver was granted in December 2010 after you announced to the nation that there would be a freeze on such waivers based on the IMF arrangements I believe.
The reason given for the waiver being granted as stated on the MOF website is "Financial Constraints in the face of enormous liabilities". The website indicated that of liabilities of $204,155,261.84 due to the Government and People of Jamaica under the applicable Tax Laws, Executive Motors Ltd. was only required to pay a little over $20,000,000. Immediately I sort to refresh my memory on other tax matters that involved Desmond Panton. My research on the Gleaner website led me to a number of articles that detailed Mr. Panton's arrest in August of last year for evasion of customs duties and for collecting revenue on behalf of Government and failing to pay it over. These transgressions were in respect of another company majority owned by Panton, Key Motors Ltd (registered co. #33,652). Several vehicles were seized from his unsuspecting customers during the customs crackdown, led by the hard-working Commissioner Danville Walker, and his place of business on Hagley Park Rd. was shuttered.
Honourable Prime Minister thousands of small businesses in Jamaica including hoteliers, manufacturers, farmers and service providers have gone out of business and production due to "Financial Constraints in the face of enormous liabilities". Certainly the sale of Mazda vehicles is not an essential service and if the principal is unable to sustain the financial health of his business without being a tax cheat then he should be allowed to sink or swim on his own volition. The Minister of Finance just announced a budget cut of $1 billion for Education. I believe you should ask the Minister if, in his discretion, the financial health of Mr. Panton and his car dealership supersedes the interest of the thousands of poor Jamaican children who stand to lose from inadequate provisions for Education that the $183,739,735.66 could have bolstered. It is my fervent belief that anyone who uses discretion in this manner should not be allowed any.
A Minister in the previous Government stated that those who play by the rules get shafted. It seems to me that this mantra is even truer now. In the face of rising gas, energy and food costs the PAYE taxpaper cannot opt to keep back some of his or her taxes due to "Financial Constraints dat mek ends caan meet" even though they are the one who have always borne the brunt of Jamaica's tax burden. On the other hand we have kicked it up a notch above the PNP Government in this instance to ensure that he who breaks the rules get rewarded!! Sir, how else can it be explained when a proven tax dodger who was arrested in August and forced to hand over monies he collected on behalf of the Government (duties and GCT on cars) is rewarded in December with a huge waiver on GCT liabilities ,some originating as far back as 2000 according to the Ministry's website?
Honourable Prime Minister maybe you can ask the determined and undaunted Contractor General Mr. Greg Christie to use his good office to probe how a company with outstanding GCT liabilities dating back to 2000 has been able to tender and win numerous government contracts for the supply of motor vechicles when one of the first requirements for Government tenders is a VALID TAX COMPLIANCE CERTIFICATE? I am interested to know is Executive Motors had a valid TCC in its most recent and successful bid to supply vehicles to the National Water Commission ?
If that requirement was not "waived" then how did they come to be in possession of a valid TCC in light of their long outstanding tax liabilities?
I must confess that I am a longstanding supporter of your Party but it would be dishonest of me to not use this opportunity to express my disappointment that you have not held your Ministers and their Ministries to a higher level of accountability as promised by you. At the very least this waiver strikes me as irregular, vulgar and immoral. I would not be surprised if used your good of to investigate, Honourable Prime Minister, that you discover something far worst. Over to you sir as there is still time to be decisive and ward of the wolves who seem to have become emboldened by your distraction with the Manatt Affair.
Yours truly
Aunty Cor Uption
Read more: http://www.jamaicaobserver.com/busin...#ixzz1KBoJfcv7
Friday, April 15, 2011
Dear Prime Minister
As the entire country and the media focuses on the circus that the Manatt Enquiry has become, I fear that a most serious matter has largely been ignored or swept aside without sufficient debate, analysis and contemplations on its most serious implications.
I speak of the matter of discretionary waivers which was highlighted by the Gleaner in an article published on Monday March 14, 2011. Even though the writer did not make it the subject of the article it revealed that of just over J$300 million in discretionary waivers granted by the Ministry of Finance, one company, Executive Motors Ltd. (registered company no. 20,719), received the lion share. This company, majority owned by Desmond Panton, received a waiver of $183,739,735.66 for GCT liabilities outstanding from 2000-2004. I must point out that this waiver was granted in December 2010 after you announced to the nation that there would be a freeze on such waivers based on the IMF arrangements I believe.
The reason given for the waiver being granted as stated on the MOF website is "Financial Constraints in the face of enormous liabilities". The website indicated that of liabilities of $204,155,261.84 due to the Government and People of Jamaica under the applicable Tax Laws, Executive Motors Ltd. was only required to pay a little over $20,000,000. Immediately I sort to refresh my memory on other tax matters that involved Desmond Panton. My research on the Gleaner website led me to a number of articles that detailed Mr. Panton's arrest in August of last year for evasion of customs duties and for collecting revenue on behalf of Government and failing to pay it over. These transgressions were in respect of another company majority owned by Panton, Key Motors Ltd (registered co. #33,652). Several vehicles were seized from his unsuspecting customers during the customs crackdown, led by the hard-working Commissioner Danville Walker, and his place of business on Hagley Park Rd. was shuttered.
Honourable Prime Minister thousands of small businesses in Jamaica including hoteliers, manufacturers, farmers and service providers have gone out of business and production due to "Financial Constraints in the face of enormous liabilities". Certainly the sale of Mazda vehicles is not an essential service and if the principal is unable to sustain the financial health of his business without being a tax cheat then he should be allowed to sink or swim on his own volition. The Minister of Finance just announced a budget cut of $1 billion for Education. I believe you should ask the Minister if, in his discretion, the financial health of Mr. Panton and his car dealership supersedes the interest of the thousands of poor Jamaican children who stand to lose from inadequate provisions for Education that the $183,739,735.66 could have bolstered. It is my fervent belief that anyone who uses discretion in this manner should not be allowed any.
A Minister in the previous Government stated that those who play by the rules get shafted. It seems to me that this mantra is even truer now. In the face of rising gas, energy and food costs the PAYE taxpaper cannot opt to keep back some of his or her taxes due to "Financial Constraints dat mek ends caan meet" even though they are the one who have always borne the brunt of Jamaica's tax burden. On the other hand we have kicked it up a notch above the PNP Government in this instance to ensure that he who breaks the rules get rewarded!! Sir, how else can it be explained when a proven tax dodger who was arrested in August and forced to hand over monies he collected on behalf of the Government (duties and GCT on cars) is rewarded in December with a huge waiver on GCT liabilities ,some originating as far back as 2000 according to the Ministry's website?
Honourable Prime Minister maybe you can ask the determined and undaunted Contractor General Mr. Greg Christie to use his good office to probe how a company with outstanding GCT liabilities dating back to 2000 has been able to tender and win numerous government contracts for the supply of motor vechicles when one of the first requirements for Government tenders is a VALID TAX COMPLIANCE CERTIFICATE? I am interested to know is Executive Motors had a valid TCC in its most recent and successful bid to supply vehicles to the National Water Commission ?
If that requirement was not "waived" then how did they come to be in possession of a valid TCC in light of their long outstanding tax liabilities?
I must confess that I am a longstanding supporter of your Party but it would be dishonest of me to not use this opportunity to express my disappointment that you have not held your Ministers and their Ministries to a higher level of accountability as promised by you. At the very least this waiver strikes me as irregular, vulgar and immoral. I would not be surprised if used your good of to investigate, Honourable Prime Minister, that you discover something far worst. Over to you sir as there is still time to be decisive and ward of the wolves who seem to have become emboldened by your distraction with the Manatt Affair.
Yours truly
Aunty Cor Uption
Read more: http://www.jamaicaobserver.com/busin...#ixzz1KBoJfcv7
keep up the good work
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