By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE 5,600 and more quarterly Value-Added Tax (VAT) filers will provide a “real test” of the VAT Department’s systems, a Task Force co-chair said yesterday. He urged businesses to avoid the last-minute rush and file their returns before the April 28 deadline.

Edison Sumner, a VAT Education Task force co-chair and Bahamas Chamber of Commerce and Employer Confederation CEO, said yesterday that while the VAT Department’s system has worked well thus far, the real test would occur next week.

“The only complaints that we have heard from persons trying to file is from those taking too long to get the filing completed and they get timed out,” he said. “The systems work fine but there are some who may just take an inordinate amount of time completing the filing of their returns and when that happens they get timed out. For those experiencing that we would suggest that you save your inputs as you go along so that if you do get timed out you can go back and start wherever the system ended you in that process.”

“This is going to be the test now, to see how well the system is built, how robust the system is and whether it can take the volume that is coming through. We have been advised by the VAT Unit and the persons there including the VAT Comptroller that the system is ready to handle the volume that is going to come through it.

“We will know better come next week Wednesday or through the next few days when people begin filing,” said Mr Sumner.

He noted that, based on the heavy volume of filers anticipated, the Task Force is encouraging businesses start filing early. “If everyone waits until the last minute and everyone tries to rush their filings through on April 28, then the systems may be challenged. The way to avoid that is to file early. The government’s system has never been challenged like this before and we will see how it turns out. We expect that it will be able to handle what comes through.”

Andrew Rodgers, the Nassau Glass and Bahamas Aluminum Manufacturing principal and member of the VAT Education Task Force, said that there are in excess of 5,600 quarterly filers. Mr Rogers has long advocated that those businesses file their VAT returns incrementally.

While it is unclear how many businesses have done so, Mr Sumner noted that there are companies who have used this approach.

Task Force member and Fidelity Bank (Bahamas) Ltd President, Gregory Bethel, appealed to businesses to file their returns on time, warning that failure to do so would subject them to a fine of $10,000, six months imprisonment or possibly a fine and prison sentence.

Businesses can file and pay via the government’s online tax administration system, through their banks’ online banking service, over the counter at most banks and by cash or cheque at any RBC branch.