Dookeran to get tough on tax dodgers; state could levy on assets to recover $13B

Finance Minister Winston Dookeran told the Senate Tuesday people who fail to pay outstanding tax arrears by the end of the May 2011 tax amnesty will face garnishee orders and the state could levy on their assets.

Dookeran made the statement in response to a question from opposition Senate Leader, Pennelope Beckles.

"After the amnesty period the State will utilise the full extent of its legislative authority to ensure that compliance with relevant taxation acts is followed, as Government seeks to make good on its tax receivables, broaden and diversify its tax base," Dookeran told legislators.

"After May 31, 2011, when the amnesty period ends, the Board of Inland Revenue (BIR) will aggressively pursue enforcement actions for delinquent accounts. This will involve the use of garnishee orders and distraint actions, that is levying on the assets of taxpayers with delinquent accounts."

Dookeran said taxpayers owe the state $13 billion, of which $5 billion is principal with penalties and interest amounting to $8 billion.

Dookeran said he expects that the major portion of the arrears - the $8 billion in interest - will be cleared automatically as taxpayers take advantage of the tax amnesty.

Dookeran announced the tax amnesty in his 2011 budget in September. It gives a waiver on all interest on outstanding taxes, including business levy and green levy due and payable.

He noted that the amnesty is intended as an incentive to taxpayers with accrued penalties and interest to pay outstanding taxes and reduce their liability.

Part of the plan is to write all taxpayers who owe money informing them of the outstanding taxes and advising them to take advantage of the amnesty. 

The minister said where any returns, taxes or levies remain outstanding after May 31, 2011, the penalties, interest, further taxes and additional taxes which would have been payable, shall be "revived" and become payable as if the waiver had not been granted.