On Friday, November 3rd, the Inland Revenue Department (IRD) was the next stop in a series of financial partner visits for the Eastern Caribbean Central Bank’s Financial Information Month enlightenment drive.
The month of October was originally designated as Financial Information Month (FIM) in all the Eastern Caribbean Currency Union (ECCU) countries. However, due to interruptions brought on by tropical storms and Hurricane Tammy, FIM activities in Anguilla were postponed in October and forced to run over into November.
The nature of a FIM Road Show stop is characterized by financial partners of the local Eastern Caribbean Central Bank (ECCB) agency taking the time to enlighten the public on issues related to financial education and financial prudence.
This year’s FIM theme was: “Creating Wealth Through Financial Resilience” and the information shared by the Inland Revenue Department last Friday, though perhaps not too pertinent to personal financial resilience, was nonetheless relevant to financial resilience on a national level.
Comptroller of the Inland Revenue, Mr. Lonnie Hobson, was interviewed by Abner “DJ Hammer” Brooks of Klass FM.
Mr. Hobson pointed out that the IRD’s FIM initiative is to do as much as the Department can do to financially educate the populace concerning taxes. He said that he and his staff help to make the public financially literate relative to the importance of all taxes in this jurisdiction.
Directing DJ Hammer’s attention to the Department’s Mission Statement, Mr. Hobson said, “See, our mission says: ‘We are committed towards collecting taxes with fairness, efficiency and integrity, in a timely and cost effective manner by providing courteous and quality services to our tax payers’.”
He said this mission is high on the Department’s agenda and the staff always strives to make it a reality.
In line with the FIM theme of financial resiliency, Mr. Hobson was asked how the Department can help Anguillians to be resilient. He answered: “The taxes that we collect go a long way into making sure that we are able to provide services to our people.”
“Services such as education, health facilities, roads, and all other public services are provided by the taxes that we collect,” Mr. Hobson said. “So, while it may appear that the paying of taxes is somewhat burdensome, these taxes go a long way in benefitting the populace. The services provided by these taxes keep the island running like a well-oiled machine.”
Mr. Hobson commented that at present the Department is dealing with tax reform. He mentioned that property tax would soon be removed from the tax structure, stressing that it will be removed from residential properties only. He emphasised that any property that serves to bring its owner(s) revenue would still be taxed. He noted that, currently, taxes on properties amount to EC$8,000,000. “By removing the residential portion of these taxes,” he said, “we stand to lose a little under EC$3,000,000.” He mentioned that this shortfall would be supplemented by the Goods and Services Tax.
The conversation on proper taxes became quite interesting, and Mr. Hobson was asked how the ‘outstanding payments’ on property taxes will be dealt with by the Department. He answered: “Those persons who paid off their property taxes are in the clear, but we cannot write off the accounts for those who did not pay their outstanding amounts. Therefore, we are still expecting to collect amounts that are outstanding.”
However, he said that from January 2024 going forward no property taxes will be exacted on residential dwellings.
Mr. Hobson further pointed out that if one has property taxes (or any other taxes) outstanding, and that individual comes to the Department for a ‘tax clearance’ he or she will be still hindered by those outstanding taxes. However, he said that the Department will work along with such an individual in making arrangements to pay through a payment plan.
When asked what the estimated amount of outstanding property taxes was, Mr. Hobson answered that there was approximately EC$1,000,000 that needed to be paid by persons who owe.
Asked if an individual will suffer outright denial of a tax clearance if he or she has outstanding property taxes, Mr. Hobson replied: “If a person comes in for a ‘tax clearance’ and realizes that he or she has taxes outstanding, that person has to make an arrangement to pay via a payment plan.
“A down payment of 10% of the outstanding amount must be paid,” Mr. Hobson said. “The individual will then be issued a one-month tax clearance. Going forward, a fixed monthly payment must be made. If the person fails to honor his or her commitment to pay monthly, when they do come in for another ‘tax clearance” they would be hindered.”
He said that it would be in the best interest of individuals who owe taxes of any kind to pay up because their debt owed to the IRD would not only be their responsibility, but the debt will follow their children, as well, making it difficult for them to progress financially. He stated that if those children eventually need ‘Tax Clearance’ themselves, they will have to deal with their parents’ outstanding debt.
Deputy Comptroller, Tamika Fleming, answered the question as to how many types of taxes are collected at the IRD: “First and foremost,” she said, “we collect GST, of course, as that is the main revenue generator; we collect the Universal Social Levy; and property tax. Additionally, we collect fees for business licenses; fees on motor vehicle licenses, drivers licenses, and all licenses, for that matter. We also collect fees on permits and fines of several kinds.”
When she was asked how she would describe the IRD’s role in helping to promote financial resiliency, Ms. Fleming responded: “As the Government’s main revenue collection agency, we try to administer taxes in a fair and equitable manner. We do not set the policies, but what we do, as far as possible, is to make it easy for tax payers to comply. To this end, we have been introducing some new customer-friendly technology and changing the way that we used to do our work, especially through our new online portal.”
In further explaining the Department’s role with regard to helping people to be financially resilient, Ms. Fleming said: “We are always encouraging person who owe taxes to come in to our offices and hold a conversation with us. We are always willing and able to work with those who owe and to make it easy for them to pay up. The taxes that persons owe, if not addressed now, can continue to grow. And, of course, that would prevent one from progressing in other ways financially. This would make it difficult for those who owe to be financially resilient.”
Assistant Comptroller, Ms. Kiesha Brooks, emphasized technology as a means of assisting the tax payer. “We are currently about 90% digitalized,” she said. “We encourage the public to join us and help us to help them. We are working hard to get all of our tax payers on our online portal. It would be for their convenience and it would make it easier for doing business. It will also assist them in keeping track of their accounts.”
During the Road Show stop, the FIM Partners issued a contribution to the Anguilla Cancer Society in the form of an EC$2,000 cheque. The donation was presented by Partner Representative in the Ministry of Finance, Mrs. Tavia Nelson-Connor. President of the Society, Mrs. Jennifer Gumbs accepted the donation.
“On the behalf of the Anguilla Cancer Society, I would like to say a hearty thank you for this donation,” Mrs. Gumbs said. “October was Breast Cancer Month. Breast cancer is the leading cancer affecting women in Anguilla, and I know that these funds will go a long way in helping to provide such procedures as mammograms.”
