By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemdia.net

A BAHAMIAN auto dealer said yesterday that the Government’s “unreasonable” monthly Tax Compliance Certificate (TCC) demand was putting a serious strain on local businesses and creating a “big paperwork backlog”, arguing that the Government’s failure to keep its own fiscal house in order was pushing some businesses into “cash only” arrangements.

Ben Albury, the Bahamas Bus & Truck general manager, said yesterday that it was contradictory for the Government to severely scrutinise businesses when it has been challenged to meet its own fiscal obligations. According to Mr Albury, at least one of his competitors has placed the government on a “cash only” arrangement and under present circumstances, he believes more businesses inevitably will do the same.

“The government financial household is in such a mess but then they are scrutinising businesses which have been loyal and faithful in paying their bills and carrying a great load towards keeping the government operating,” Mr Albury said. “When I need to collect my money it’s a mess. As a businessman, I have to keep my business functioning. I can go months and months behind in collecting money from government but they tell you you need to have all of your business in order, that’s the frustrating part.

“Even if they have tax refunds for me, I can’t get them because I can’t get my tax refund certificate in a reasonable time to process it. I think they are going to put a lot of people out of business or some people - including one of my competitors - has put them on completely cash. They can’t go in and get a part unless they have cash. You can’t trust them to take a product with just a purchase order.”

Mr Albury said that while he has faced challenges like other businesses in terms of getting Value Added Tax refunds in a reasonable time, the need for a TCC each month has also proved problematic.

“Now we have the problem with the Tax Compliance Certificate that has to be issued on a monthly basis,” he said. “There’s a challenge in getting one. You apply for one at the beginning of the month but you don’t get it until the end of the month and so then you have to reapply every month for a new form, which I personally believe is a way for government to avoid paying.

“They come and get these products from you in good faith and when it is time to pay you have to have a Tax Compliance Certificate every month which they themselves are unable to provide in a reasonable amount of time. When you look at it, it is impossible for them to satisfy the demand based on the amount of people that need such a form.

“I think its ridiculous and it is creating a big paperwork backlog. It’s not realistic to have a new one produced in a month. You can have one produced every six months, which still may not be necessary.”