| September 26, 2011Mr. Nat Hodge, Editor The Anguillian The Valley, AnguillaDear Sir:Having just come from Inland Revenue Department after paying an EC$8700.00 penalty, I think it is imperative that I write this letter to the public to alert others that may fall into my same category. And, yes, this does concern the Stabilization Levy. |
| I have a very small hobby based business in which I am the only employee. My income is less than EC$2000.00 per month and some months I do not earn anything. I knew I would be exempt from the tax. After hearing some disturbing stories recently of the DAILY EC$50.00 penalty imposed on others not reporting their incomes I decided to seek answers for my unique situation.Friends, these were not rumours! Even if it has no income (closed for the season) or less than $2000 per month income, every business (with a business license) is supposed to file a form with Inland Revenue Department before the 10th of the following month. And if that form is not filed the EC$50 a day penalty will be charged. And for those that have not done this, they will be “caught” when the business license is renewed and that penalty will be twice what I had to pay. The Inland Revenue Form is in addition to the forms for Social Security. Even Social Security told one friend at he/she did not have to file with Inland Revenue if the business was closed for the season – but indeed it does!! This law is so confusing, even the government agencies involved do not know the proper procedures.To the best of my knowledge there has been no documentation on penalties from the government sent to business license holders outlining their full obligations under this law. I can understand the need for penalties if anyone intentionally tries to get out of paying large sums to the Government. But I don’t have to pay any Levy. Certainly the ” Powers That Be” can consider a penalty more in line with the situations of very small businesses such as mine. EIGHT THOUSAND SEVEN HUNDRED DOLLARS is an outrageous amount for my small business to be forced to pay. My profit for the year has just evaporated.This letter is a plea for the public to be alerted to the need for this Inland Revenue filing and the resulting penalty for a late filing. Also I think it is past time for the government to implement much needed adjustments to this penalty according to business size. Thank you for your kind attention to this important matter. A Very Concerned Business Owner |
