Barbados Extends VAT Amnesty

by Amanda Banks, Tax-News.com, London

17 January 2011

Barbados Minister of Finance, Chris Sinckler has announced an extension to the island’s Waiver of Interest and Penalties Programme (WIPP), until November 30, 2011.

The programme is being extended following inclusion in the Budget, presented late in 2010. The programme enables taxpaying entities with unpaid value-added tax (VAT) balances in previous years to avail themselves of the chance to settle their arrears with the penalties and interest applicable halved. The authorities are allowing payment to be made under plans of up to five years in duration, depending on individual circumstances.

The scheme is being offered under the following conditions:

• The principal and the remaining balance of interest and penalty must be paid within the time stipulated in the agreement;
• All outstanding VAT returns must be filed so that the balance outstanding can be determined;
• All returns filed after December 1, 2010, must be accurate; and,
• All future obligations under the VAT Act, Cap. 87 must be met as they become due.

Detailing further conditions of the scheme, the government said:

“Registrants must state their value-added tax registration number should they make an inquiry, and they are reminded that any agreement entered into will be terminated if the terms and conditions of the said agreement are not honored.”

Concluding, the government’s statement added: “In addition, taxpayers are reminded that within 21 days after the end of each taxable period, they must file with the Comptroller an accurate return for the taxable period, whether or not a taxable supply is made.”

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