Thursday, July 14, 2011

Businesses owe $300M in VAT to T&T government: Dookeran

Finance Minister Winston Dookeran said Wednesday businesses in Trinidad and Tobago owe the government about $300 million in value added tax (VAT).

Speaking at the annual regional meeting of chartered accountants and auditors in Port of Spain the minister said the collection of VAT continues to be a real problem.  

"I think many people who collect VAT do not realise that they are doing this in trust for the Government and they are letting that go into their cash flows," he said.

"VAT collections have decreased and the suggestion is that has been so because people do not remit what they collect."

He added that the rule is simple. "If the Government owes me money, the Government must pay you that money and, of course, if you owe the Government money you must pay the money. That's the fundamental basis on which tax reform is taking place."

Dookeran said while his ministry was working on strategies to collect the outstanding money and urged everyone to do the right thing.

He said, "I think it is a great professional challenge to try as accountants who advise people on taxation matters to remedy that in the national interest so that the micro performance of the enterprises will be consistent with the macro objectives of the State."

Dookeran also spoke about the amnesty extended to taxpayers, noting that it resulted in the collection of $1.9 billion in outstanding taxes.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai