The Government of Anguilla is owed 24 million East Caribbean dollars in Property Tax but, because of the onslaught of COVID-19, and the difficult financial situation affecting businesses and individuals, they are being offered a discount on their debt.
This is a decision of the Executive Council, taken at its meeting on July 1, 2021.
The relevant extract from the Council’s minutes is published below by The Anguillian newspaper for the information of the public.
EX MIN 21/211 EX MEM 21/114 AMENDMENT TO PROPERTY TAX LEGISLATION TO PROVIDE A 2021 PROPERTY TAX DISCOUNT AS A COVID-19 RELIEF MEASURE
The PAS, Finance briefed Council, salient points as follows:
• Briefing on the recommendations to enact legislation under the Property Tax Act in order to:
a) provide a discount on current Property Tax for the 2021 fiscal year; and
b) to modify the due date for payment of the first instalment of Property Tax to September 1, 2021.
• Update on the projections for 2021 Property Tax collections and other related issues.
• Since 2016, there have been various discounts offered and whilst the discounting is reported as a compliance measure, only compliant persons typically pay the tax. However, the discount does work to encourage early payment.
• Discounts were offered in 2017 and 2018 after hurricane Irma and now owing to the pandemic the income of businesses, households and the Government has been negatively affected.
• The aim is to provide enhanced relief. The discount would be brought into effect by a 5% rate reduction on all types of buildings and a 5% discount on 2021 current tax, if the bill is paid in full by the first due date, and this will apply whether the person is in arrears or not. This discount only applies to current tax and not arrears.
Council:
1) noted that it was preferable to consider this matter together with the policy on GST as this would enable consideration of the full tax landscape, the associated impacts and cost implications in a cohesive manner. However, given the urgency around issuing the Property Tax demand notices it was necessary to make a determination. This matter was not presented for Council’s consideration earlier because the Ministry were focusing on the collection of arrears;
2) noted that the revenue loss related to discount A is 5% of EC$7.1M minus EC$1.5M which is EC$280K;
3) noted that the 2021 revenue estimate anticipated the revenue loss associated with discount B and it is proposed that there is no significant loss associated with the expansion of the discount to taxpayers who are in arrears and do not pay the arrears in full;
4) noted that a 10% discount was applied in 2020 and the revenue estimates were met, even though a large payment of arrears was made in 2021. Performance in 2021 may be better than anticipated and the discounts proposed can be accommodated within the Property Tax regime;
5) approved the change in the first due date for Property Tax from 1 June, 2021 to 1 September 2021;
6) approved the provision of a 5% discount on all Property Tax demand notices, irrespective of payment date during 2021, as a COVID-19 relief measure;
7) approved the provision of a 5% discount on current Property Tax bills, to taxpayers in arrears, if the full amount is paid by the first due date; and
8) instructed the AG’s Chambers to draft the legislative amendments required, to facilitate the proposed discounts and the amendment to the first due date for the payment of tax.
Council authorised the issue of the Action Sheet before confirmation of the Minutes.
