The reported failure of the Caymanas Track Limited (CTL) to honour its statutory obligations on behalf of its employees has investigators of the Public Accountability Inspectorate (PAI) Division of the Ministry of Finance and the Public Service frowning.
The PAI reported that CTL has failed to pay over all statutory deductions collected on behalf of the Collector of Income Tax.
"This is in breach of Section 41 Subsection (1) of the Income Tax Act which states, inter alia, that "any persons required by this act to deduct on the payment by him ... within 14 days after the end of the calendar month in which the first mentioned payment was made ... from the payment," the inspectorate noted.
Apart from a breach of the law, the PAI stressed that "the continued incorrect treatment of statutory deductions payable will cause the company's employees and CTL income-tax liability to be understated at the end of the year and deprive the Government of revenues.
The PAI noted that this would also deprive the Government of much-needed revenues and would negatively impact on employees who attempt to access services from the National Housing Trust or the National Insurance Fund.