MORE THAN $200 million is said to be owed to Government in value added tax (VAT) and income tax by several major enterprises, professionals and business people.
And in a paid advertisement in last week’s MIDWEEK NATION the Comptroller of Customs invited private attorneys-at-law to apply to the VAT Division to assist in “resolving legal issues” in relation to the collection of VAT arrears.
A WEEKEND NATION probe at the Registry of the Supreme Court revealed that certificates of judgement have already been lodged against several interests for unpaid dues that in some cases go back more than a decade, and remained unaccounted for up to last Monday’s closure of the Supreme Court.
The Comptroller of Customs is the plaintiff in matters related to the VAT Office while the Commissioner of Inland Revenue is plaintiff with respect to income tax defaulters.
Among those against whom judgments have been lodged is a debt collection agency.
Yesterday, a senior Government official told the WEEKEND NATION that money owed to the state could likely be more than $200 million since there were many outstanding sums that had not reached the stage of certificates of judgement being lodged.
He explained that in several instances the judgements had been re-registered at the five-year stipulated period to prevent them being voided, in keeping with Section 3 Subsection (1) of the Registration of Judgements Act, Chapter 210.
The official suggested that with the 2.5 per cent increase in VAT there was the real danger that while Government might be collecting more revenue, there was the possible flip side that outstanding fees due to the state could also likely get cumulatively greater.
He said it was crucial that Government enforced the law and collections be dealt with as a matter of national priority.
“A charging order can be placed on these people’s properties and they can be sold but this is not being done. There are a number of things to consider, I guess, such as people being employed and the need for enterprises to keep functioning,” he said.
When contacted Minister of Finance Chris Sinckler, under whose portfolio the VAT and Inland Revenue departments fall, told the WEEKEND NATION the situation was very serious. He said that defaulters should make every effort to meet with both the VAT and Inland Revenue departments and make arrangements to have their payment issues settled.
Sinckler said the massive sums owed Government could go a significant distance in servicing some of the needs of the country.
SUPREME COURT LIST:
Below is a list of some of the cases lodged in the Supreme Court involving the VAT?Department.
A sample of the hundreds facing judgements:
Rayside Construction [case No .2175/05] $5 198 828. 35 for Inland Revenue;
Clarke’s Auto Express [case No. 1729/2000] $1 250 932.51 for the VAT Department;
Spektakula Promotions [case No. 1630/03] $446 354.99 for VAT;
Pierce Furniture & Furnishings Ltd [case no.1255/03] $981 866.58 in VAT;
Roger Hill Trading as Sazzy Boutique [case No. 476/03] $878 615.42 in VAT;
Wild Pair Shoes [case No. 2719/02] $549 083.34 in VAT; and
Kentucky Fried Chicken [case no.115/02] $461 837.63 in VAT.
Divi Southwinds faces two judgements for [case No. 1217/01] $374 239. 43 and [case No. 1218/01] $673 961.09;
Grant Hotels Inc. has four judgements for $1 250 766.55 [case No. 2100/99], $826 744.87 [case No. 1157/03] and $27 229.36 [case No. 2099/99] for Inland Revenue and $880 420.39 [case No. 1074/03] for VAT.
