Damion Mitchell, News Coordinator
SURRIDGE
RETIRED HEAD of the Financial Investigation Division (FID), Mike Surridge, has asked the Government to reconsider its policy on voluntary tax compliance.
According to him, it was an error to decide years ago not to advertise the names of companies breaching the tax laws. He said the agreement was to allow them to settle their arrears by financial penalties.
"That would have been all right if those people who refused to settle received real punishment in the courts," Mr. Surridge told The Gleaner.
He pointed to what he said was a breakdown of the voluntary compliance bid, saying harsher sentences are not being imposed that could act as a deterrent for other tax dodgers.
Mr. Surridge, who retired from the FID just over two weeks ago, said the "biggest failure" is that Government is being evaded of millions of dollars in General Consumption Tax (GCT) resulting in an unfair competition among businesses.
The GCT was increased on May 1 from 15 per cent to 16.5 per cent as part of the Government's new $9 billion tax package.
Already, the Finance Ministry has indicated that it would not be relenting on persons who are seeking to avoid the payment of their taxes.
In the meantime, Mr. Surridge says the Government is losing $2 billion to $2.5 billion in taxes through the under-invoicing of imported produce.
