Visit the Inland Revenue Department any working day and the public area is likely to be filled by a capacity crowd. Many times it is only standing room for the large mix of persons from across the island, faithfully paying the mandatory fees and taxes owed to the Government of Anguilla for a full range of public services. It is a credit to the dedicated and calm workers to be able to handle the sometimes impatient and disgruntled milling throng awaiting service.
Just across from the Treasury and the Ministry of Finance, the building housing the Inland Revenue Department looks insignificant from the outside. It might have gone unnoticed if its signage was not so pronounced – unnoticed because it has been a customary structure for many years having served, along with its adjoining eastern section (now the Audit Department), as part of the barracks for the Anguilla Police Force before the prefix “Royal” was applied. Despite its seemingly insignificant external appearance, the Inland Revenue Department is one of the Government’s agencies with a big pocket of money earned from a huge scope of transactions, ranking second only to the Customs Department.
It is no wonder that the Inland Revenue Department was recently selected as the first public venue for a Suggestion Box installed by the Public Service Transformational Team. If the crowds of people there were to fully cooperate with the team’s request, there could be an enormous daily flow of suggestions, for improving the public service, and compliments.
Several days ago, the sizeable volume of customers led The Anguillian newspaper to inquire from the Comptroller of Inland Revenue, Mr. Kiel Connor, about the influx of people – estimated to be much more than usual. Following is a snapshot of the conversation.
It is a very busy day at your department, Mr. Connor. May I have your comments please?
Usually at month-end we have a lot of persons from car rental agencies and others coming in to pay Accommodation Tax, the Interim Stabilization Levy, various other taxes including Property Tax, the Tourism Market Levy, renewal of licenses, etc. At most month-ends it is very hectic here, and we are trying to do our best to improve our efficiency in terms of turn-over. We have a lot of work, but we are making some strides in that regard.
Do you actually have the manpower to handle this influx of persons and their varied transactions?
We have been efficient in using the human resources we have. As I indicated earlier, we are definitely focusing more on efficiency in terms of getting taxpayers in and out of our department in a timely manner.
The Suggestion Box we have here is to give the public an opportunity to rate the performance of the frontline officers. The intention is not to make respective officers look bad in any way, but is just an avenue of feedback from taxpayers as to how we can improve the services we offer.
We are trying to make a conscious effort to demonstrate to taxpayers that we value their time and that, whatever it takes for us to improve our service, we are willing to accept the feedback and make the necessary adjustments.
Have you received any feedback so far?
Yes, we have already received some. I don’t perceive any feedback to be negative because, at the end of the day, we need to give taxpayers the opportunity to be honest about how they feel. The intention is to ensure that we can offer the best service to taxpayers.
Would you say that there is a smooth flow of payment of taxes and fees?
Yes. In recent times we have seen an improvement in our overall compliance rate. However, there is always need for improvement. We are placing a strong emphasis on taxpayer education and compliance enforcement going forward.
From your vantage position, can you speak about any new taxes anytime soon?
No. There are no new taxation measures just yet.
How about all this talk about GST (Goods and Services Tax)?
Contrary to belief, GST will not be implemented in 2019. We still have a lot of work to do in that regard – to the direction in which we will be going, and how it will be administered. As we get things more formalized internally, we will be disseminating information to the general public.
What was the level of revenue collected by your department in 2018?
We collected EC$66.8 million. Our estimate for 2018 was EC$62.7 million. We exceeded our target by EC$4 million. Special thanks to my staff at IRD, collectively they are doing a great job. Thanks as well to the compliant taxpayers we truly appreciate your effort and support.
Apart from the payment of taxes and fees, what else may have contributed to your surpassing that target?
For the past couple of years we have placed a strong emphasis on improving voluntary tax compliance. These efforts are now bearing fruit, an effective taxpayer education program is key to achieving voluntary compliance. Our audit and compliance strategy is another factor. Networking with various government departments, agencies and the private sector is the basis of compliance strategy . For 2019, we will be engaging in more field work. It is important that physical presence is observed throughout the island.
The increased Property Tax 2018 has been a much-debated matter in the community. Are there any problems in collecting this form of revenue?
Not really. In fact, for 2018, we have had an overall compliance rate of 62 percent. Best practice for compliance is always between 60-70 percent. Achieving 100 % compliance is unrealistic, it is important to note a couple years ago property tax compliance was between 30 to 40 percent. So that, in itself, speaks about the efforts of the Inland Revenue Department and the cooperation of taxpayers.
Do you have any plans to take defaulters to court?
Achieving voluntary compliance is our first option. Of course, there will always be individuals who intentionally try to evade paying taxes. We will going after those who are committing tax evasion.
Finally, what advice do you have for the public?
We definitely wish to thank all taxpayers who are making every effort to be compliant. For those who are unaware of their obligation we invite you to make an appointment to come to the office for clarification and information on any matter regarding their taxes. We are promoting voluntary compliance.
