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Mr Gladstone Turner and his Special Enforcement Team
Thursday, June 16, 2011
There is compelling reason why we insist that taxes owed must be paid. Jamaica can reach nowhere if our people do not pay their taxes. The country would come to a halt in no time if its critical bills cannot be paid.
For that reason we are largely in support of the work of Mr Gladstone Turner and his Special Enforcement Team (SET) attached to the tax department. And we recognise that they have to bring a certain level of toughness to the job.
We have gone as far as to criticise even entities which belong to our fraternity for owing millions of dollars in unpaid taxes.
And yet, it would be foolish of us to suggest that every person or entity who owes tax, is an intentional tax-dodger.
The business of paying taxes in Jamaica has always been contentious. It is not merely the age-old dislike for the taxman.
Far too much of the burden of paying taxes has had to rest on the shoulders of those who can be caught, especially through the Pay As You Earn (PAYE) system where the income tax is taken out at source. The rate is set by government and the taxpayer has no say in the matter.
At the same time, far too little is done by governments to spread the tax net as wide as possible to ensure that the tax burden is shared more equitably. Our various administrations have been too lazy to do the hard work necessary to achieve this.
In the absence of a really broad tax net, the State has grown in its reliance on Mr Turner's Special Enforcement Team, to the extent that he is behaving like a god.
Tax collection is part and parcel of the basket of activities aimed at financing the operation and development of our State. It cannot be an end in itself nor can the SET be a renegade. That is why the SET must operate by the rules established to govern its operations.
In the instant case of Mr Ricky Vaz's Auto Traders, Mr Turner was miffed that his bosses called off his charge against the business, after arrangements were made to pay outstanding taxes.
As Mr Vaz is the brother of the minister of information, Mr Daryl Vaz, it was quickly construed that it was his intervention that led to the call from the tax department. He has denied this and protested the right of his brother to be treated as any other citizen of Jamaica. In this case, Minister Vaz is entirely correct.
We note that the tax department called in the SET to remind them of the Standard Operating Procedures, which is another way of saying that Mr Turner's team has been going beyond their state-sanctioned duties. We suspect that once the matter had entered the public sphere, the department might have felt intimidated, not wanting to go against public sentiment against politicians and 'big men' getting away with not paying taxes.
But we must caution that such a petty approach cannot be sustained.
The Tax Collections Act, though well overdue for review, makes provision for special situations to be addressed in a specific way, when taxes are outstanding. That is because the law recognises genuine cases of hardship and gives various officers the authority to respond accordingly.
Every Jamaican must be treated equally under this law, regardless of their station in life. We insist on this even while insisting that Mr Ricky Vaz must pay tax legitimately due.
Mr Turner, or anyone else for that matter, cannot be allowed to abrogate this right to himself, to treat Jamaicans as he sees fit. We're running a country, not a cold supper shop.
Read more: http://www.jamaicaobserver.com/edito...#ixzz1PUnfa0Rx
Thursday, June 16, 2011
There is compelling reason why we insist that taxes owed must be paid. Jamaica can reach nowhere if our people do not pay their taxes. The country would come to a halt in no time if its critical bills cannot be paid.
For that reason we are largely in support of the work of Mr Gladstone Turner and his Special Enforcement Team (SET) attached to the tax department. And we recognise that they have to bring a certain level of toughness to the job.
We have gone as far as to criticise even entities which belong to our fraternity for owing millions of dollars in unpaid taxes.
And yet, it would be foolish of us to suggest that every person or entity who owes tax, is an intentional tax-dodger.
The business of paying taxes in Jamaica has always been contentious. It is not merely the age-old dislike for the taxman.
Far too much of the burden of paying taxes has had to rest on the shoulders of those who can be caught, especially through the Pay As You Earn (PAYE) system where the income tax is taken out at source. The rate is set by government and the taxpayer has no say in the matter.
At the same time, far too little is done by governments to spread the tax net as wide as possible to ensure that the tax burden is shared more equitably. Our various administrations have been too lazy to do the hard work necessary to achieve this.
In the absence of a really broad tax net, the State has grown in its reliance on Mr Turner's Special Enforcement Team, to the extent that he is behaving like a god.
Tax collection is part and parcel of the basket of activities aimed at financing the operation and development of our State. It cannot be an end in itself nor can the SET be a renegade. That is why the SET must operate by the rules established to govern its operations.
In the instant case of Mr Ricky Vaz's Auto Traders, Mr Turner was miffed that his bosses called off his charge against the business, after arrangements were made to pay outstanding taxes.
As Mr Vaz is the brother of the minister of information, Mr Daryl Vaz, it was quickly construed that it was his intervention that led to the call from the tax department. He has denied this and protested the right of his brother to be treated as any other citizen of Jamaica. In this case, Minister Vaz is entirely correct.
We note that the tax department called in the SET to remind them of the Standard Operating Procedures, which is another way of saying that Mr Turner's team has been going beyond their state-sanctioned duties. We suspect that once the matter had entered the public sphere, the department might have felt intimidated, not wanting to go against public sentiment against politicians and 'big men' getting away with not paying taxes.
But we must caution that such a petty approach cannot be sustained.
The Tax Collections Act, though well overdue for review, makes provision for special situations to be addressed in a specific way, when taxes are outstanding. That is because the law recognises genuine cases of hardship and gives various officers the authority to respond accordingly.
Every Jamaican must be treated equally under this law, regardless of their station in life. We insist on this even while insisting that Mr Ricky Vaz must pay tax legitimately due.
Mr Turner, or anyone else for that matter, cannot be allowed to abrogate this right to himself, to treat Jamaicans as he sees fit. We're running a country, not a cold supper shop.
Read more: http://www.jamaicaobserver.com/edito...#ixzz1PUnfa0Rx
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