Antigua's Chamber Of Commerce Puts Foward Tax Compromise

by Amanda Banks, Tax-News.com, London

06 February 2003

Antigua's Chamber of Commerce met with the jurisdiction's Deputy Prime Minister, Robin Yearwood last week to discuss the government's corporate tax evasion crackdown, which has proved unpopular with local businesses and the Opposition alike.

Speaking in December, Opposition leader Baldwin Spencer condemned the initiative as a 'political witch hunt', accusing the Labour government of only targeting businesses which are perceived to be Opposition-aligned. The authorities have always strongly refuted this claim, but several of the 60 firms currently being chased for back taxes have denied that they have any outstanding liabilities.

Putting forward a possible solution to the tax collection deadlock, the Chamber of Commerce last week suggested a compromise whereby in the event of a tax assessment by the Inland Revenue department, the company would immediately pay any undisputed back taxes, but would be permitted a period of 90 days in which to have its appeal heard, with no obligation to pay during that time.

According to the Antigua Sun newspaper, which reported on the meeting: 'The onus would be on the authorities to hear and rule on the appeal within the 90-day period, and the assessed corporation would not be penalised for failure on the part of the appeal body to act within such a time frame.'

The Deputy Prime Minister reportedly expressed sympathy for the Chamber's viewpoint, and promised to make representation to the Cabinet on its behalf. However, he stressed the government's ongoing commitment to stamping out corporate tax evasion in the jurisdiction.

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