By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

MARIO’S Bowling and Entertainment Palace has not charged value added tax on its goods and services since the new tax was implemented on January 1 even though it is a VAT registrant.

Leslia Miller-Brice, marketing director, told The Tribune that the company was not ready to implement the new tax, and hoped to be fully compliant by next week. Mario’s is a family business owned by Leslie Miller, PLP MP for Tall Pines.

Mrs Miller-Brice was contacted after some customers queried a 10 per cent “tax total” line item on the company’s receipts. Some questioned if the company was overcharging on VAT.

However, Mrs Miller-Brice explained that the current tax line item on receipts is charged for gratuity not VAT.

“I don’t want to start (charging VAT) and then have to go back in to fix it and make changes like what’s going on now,” she said, “so we’re working on it, and by next week it should be on there.

“When we have it set up properly we will start, and if the government wants to fine us for the first two weeks when we didn’t charge it, we will have to deal with that.”

According to the VAT Regulations 2014, there is a fine of up to $50,000 or a prison term of up to two years for “wilfully” evading VAT; improper collection and advertisement of VAT; impeding the comptroller or a VAT officer in the

administration of the VAT Act or for failure to comply with a requirement of confidentiality.

According to the regulations, someone can be fined $1,000 for each false statement on VAT. Additionally, VAT registrants who violate VAT-inclusive pricing could face as much as $100,000 in fines, up to a year in prison, or both.

When asked her thoughts on the tax, Mrs Miller-Brice said: “From my point of view (as a consumer), it is what it is. I respect the government’s decision, whatever their reasons are for bringing VAT, I think they have their reasons and we will abide by it. I haven’t had any problems, everything has been fine.”

VAT is charged at a rate of 7.5 per cent on most goods and services, with few exemptions.

The new tax got off to a rocky start with mass confusion in the petroleum industry, and major food store chain Super Value, and its Quality Supermarkets affiliate, by not charging VAT on January 1 because of IT problems.

Rupert Roberts, Super Value’s owner and president, said that none of his stores levied VAT on implementation day after technical problems resulted in the day’s first consumers being charged 10 per cent – not the legal 7.5 per cent.

Since the new tax was implemented, there has also been widespread concern from consumers over price gouging or fraudulent tax application.

Earlier this week, John Rolle, financial secretary in the Ministry of Finance, said that each VAT complaint will be investigated and encouraged consumers to make digital copies of their receipts.

Mr Rolle acknowledged that some businesses were still struggling to make the transition to the new tax, and had not yet made all the necessary adjustments.

However, he maintained that the VAT department would remain vigilant and investigate all claims on a case-by-case basis.

He called on businesses to display their TIN and VAT certification in a prominent place so that customers can readily identify their tax status.