17 September 2021 [Updated: 27 September 2021], The Valley, Anguilla: Community leaders, spearheaded by members of the Concerned Citizens of Anguilla, submitted a formal request to Lord Ahmad of Wimbledon, Minister for the Foreign, Commonwealth and Development Office; and Rt Hon Dominic Raab on 10 September 2021, just five days before Raab was appointed Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice.
The letter detailed grave concerns regarding punishing aspects of the Goods and Services Tax Act itself, issues of public consultation, and the unprecedented manner in which it was passed. The appeal followed a series of letters to Her Excellency, Dileeni Daniel-Selvaratnam, Governor of Anguilla. These requests for repeal were sent on behalf of thousands of petitioners and leading organisations across civil society, all fervently objecting to the law’s passage despite its scheduled imposition on 1st July 2022.
“In light of the reshuffle in the British Cabinet and the appointment of Ms Liz Truss as Secretary of State, we are in the process of re-directing this appeal to her, of course allowing a few days for the Secretary of State to be acclimated in her new position”, said Mrs. Josephine Gumbs Connor, principal of JAG Gumbs & Co, a law firm in Anguilla and a leading spokesperson for the Concerned Citizens. Mrs. Gumbs-Connor was noting the appointment of the Rt Hon Elizabeth Truss, MP to Secretary of State for Foreign, Commonwealth and Development Affairs, thereby replacing Raab on 15 September 2021.
The appeal previously directed to Rabb who was then the highest functionary with responsibility for the Foreign, Commonwealth and Development Office and the BOTs, represented the escalation of earlier efforts and a second petition asking Her Majesty’s Governor to stay her hand and then to rescind her assent to the law with emphasis on its passage only by ‘aye’s from ex-officio Members of the House. In response to letters from the Anguilla Chamber of Commerce sent to Honourable Minister for Economic Development, Kyle Hodge, to those sent to the Governor by the Anguilla Hotel and Tourism Association, the Anguilla Christian Council, the Anguilla Evangelical Association, and the Office of the Leader of the Opposition, Governor Daniel-Selvaratnam informed the citizens that the Attorney-General and Deputy Governor voted legally and that it was simply the Governor’s duty to assent to any duly passed laws from the House.
As cited in the appeal to Lord Ahmad of Wimbledon, and the Rt Honourable Dominc Raab, “That un-elected appointees did not prudently take a stance of isolation from an occasion that was intensely politically charged and from a highly contentious fiscal measure but chose instead to use their office to undermine the democratic will of Anguillians, represents an affront that cannot be cured by the rhetorical regurgitation that ex-officio members are Members of the House and are therefore empowered to vote.”
The letter accentuated that, compounding perceptions of an undemocratic passage of the bill, was that the Speaker asked the Attorney-General for advice on the call for a vote by division in a private consultation immediately before it was taken. The Speaker adjourned the House and was joined by the Attorney-General for this purpose. The Attorney-General returned to his seat, gave his advice to the House of Assembly and rather than abstain, proceeded to the astonishment of many, to cast an ‘aye’ vote that cancelled that of a duly elected member of the House. His action has been seen in many quarters as a serious conflict by most any legal standard.
Yet more factors that Her Excellency chose to dismiss included significant breaches of the standards for public consultation. The government began its public consultations for the first phase of GST with an announcement that the session was not a consultation; the tax would be going into effect. Moreover, the final bill did not reflect feedback from public consultations, including hearings held by a House of Assembly Select Committee. Notably, the Honourable Premier Ellis Lorenzo Webster asserted at a 12th July press conference that the Bill would proceed for its second and third readings seven days after the last hearing and two weeks before the Committee report was tabled. This from a leader who campaigned to prevent the GST tax from ever being progressed and passed into law.
Published by Gazette the day after its passage, the final Bill was also more restrictive than the draft. For example; a new clause requires payment of 50% of any disputed amounts before they would be considered, along with lengthy review and settlement periods; the latter is without limits in lieu of merely compounding interest for unpaid, fully justified refunds.
The controversial law further stipulates that “any matters” necessary or “convenient” could be altered without public consultation by regulation at any time. The law also grants the Comptroller power to issue a “notice to give evidence” without a writ from any court that compels any person “whether or not liable for the tax” to appear “on oath” and provide information about themselves “or any other person” or else risk formidable consequences. In fact, a quarter of the bill delineates such civil and criminal penalties in 27 sections.
As Anguilla has a workforce of barely 5,000 people, including over 1,500 in public service and statutory bodies, and where so many share the same churches or may be from the same families, the Comptroller’s powers to conduct “routine audits” were seen as especially intrusive when the draft bill was further exposed during the Committee hearings. Tax officers’ freedom to copy and seize records or computers without a writ or any notice to any taxable person “or any other person” routs basic rights with respect to unreasonable search and seizure.
The law also requires that a taxable person “or any other person” must retain seven years of records fully documenting every transaction in their lives or be subject to penalties. “I’d say about 80 percent of our businesses could not comply with GST requirements,” noted the principal of a leading financial and business services firm in Anguilla.
“Beyond its undemocratic passage, dysfunctional consultations, and every sector objecting to such a severe form of tax for a territory our size, I think they’re using Anguilla as a test case,” said Mitch Lake, a business leader and a founding member of the Concerned Citizens of Anguilla. “If we allow this to be forced on us, I fear a post-Brexit demand that all of the OTs must follow suit. I hope the other territories will add their voices to help us stop this cruel tax. It would destroy any hopes for post-Covid tourism, cost us hundreds of jobs, and push already struggling Anguillian families into poverty,” he concluded.
For more details with respect to the urgent request to strike the Anguilla Goods and Services Tax Act, the letter to Lord Ahmad of Wimbledon and the Rt Hon Dominic Raab was published in full by the independent newspaper, The Anguillian, on Friday, 17 September 2021. Update: The correspondence has been posted online at: https://theanguillian.com/2021/09/concerned-citizens-awaiting-reply-from-uk-officials-on-gst/
About Concerned Citizens of Anguilla:
The Concerned Citizens of Anguilla is an association of ordinary members of the public comprising Anguillians at home and in the diaspora who share a vision and embrace core values for uplifting their People as they continue to advance on a national path to internal self-governance under a strong, clear constitutional framework. They seek to foster prosperity, nurture and elevate Anguilla’s rich culture, and promote both educational and professional opportunities for Anguillians within Anguilla. To realise these objectives the association recognises the need to maintain a vigorous interest as a watchdog association by addressing pivotal issues, activities, policies, and laws that affect critical aspects of civil rights and/or ensuring a sustainable economy for all members of society.
Contact:
Josephine Gumbs-Connor
For and on behalf of the Concerned Citizens of Anguilla
Email: jagconnor@yahoo.co.uk
Phone: 340.201.1115
