THE Value Added Tax Compliance Unit will today investigate why Super Value locations were not charging the new tax that came into effect yesterday, Minister of State for Finance Michael Halkitis said. #Customers who shopped in Super Value stores, which operated under shorter work hours for the New Year’s Day holiday, told The Tribune the tax was not added to their bills. #One woman who bought groceries at the Cable Beach location said a manager told her the tax would be in place at the store today, although it was mandated by law for collections to begin yesterday. #When contacted about this, Mr Halkitis said he had heard similar reports. He said the VAT Compliance Unit was dispatched yesterday to investigate but when they arrived at Super Value, the supermarket chain had already closed it doors. #Mr Halkitis did not say what penalty, if any, the business would face for not being in compliance yesterday. #He said he had to ascertain the facts first. VAT is charged at a rate of 7.5 per cent on most goods and services, with few exemptions. #Rupert Roberts, Super Value’s owner, blamed the lack of charging on technical problems which resulted in the day’s first consumers being charged 10 per cent – not the legal 7.5 per cent. He said Super Value, and its Quality Supermarkets affiliate, had been left with too little time to get their IT systems ready across all stores after being overwhelmed by a New Year’s Eve pre-VAT buying rush. #However, Mr Roberts – a strong opponent of the new tax – said the issues had been resolved and the supermarket chain would be ready to levy the tax today. #In 2013, his company appealed to Bahamians to write to their political representatives to “say no to VAT.” He has maintained that the tax is not good for the country or businesses. #In October he told Tribune Business that VAT-inclusive pricing will create “unnecessary work” for Price Control as well as the retail industry. “We could change night into day easier than this,” he said at the time. “The best thing the government can do is amend the law to get around inclusive pricing. It’s just a simple exercise to have it on the tape.” #He added: “If merchants are going to collect VAT for the government, the government should make it as simple as possible for the public and merchants, allowing them to do it efficiently, easily and inexpensively.” #According to the VAT Regulations 2014, there is a fine of up to $50,000 or a prison term of up to two years for “wilfully” evading VAT; improper collection and advertisement of VAT; impeding the comptroller or a VAT officer in the administration of the VAT Act or for failure to comply with a requirement of confidentiality. #According to the regulations, someone can be fined $1,000 for each false statement on VAT. Additionally, VAT registrants who violate VAT-inclusive pricing could face as much as $100,000 in fines, up to a year in prison, or both.
Posted on: Sat, 03 Jan 2015 12:34:50 +0000
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