Its difficult for anyone who is currently licensed and regulated to speak out against annual audits for fear they will be landed with "enhanced compliance procedures".

I was an auditor with a Big 4 firm back in the 1980s for 5 years and a Trust Company financial controller and Manager for 20 years and in the 10 years before retirement I was the accountant for a large investment firm.

Throughout my 35 year career in auditing, banking and trust the firms were always subject to completion of audits within 4 months. We had teams of qualified and trained accounts.

My thoughts:

We seldom were able to complete the audits in 4 months due to all sorts of financial issues including going concerns, material matters for enhanced disclosure, computer system conversions, lack of qualified staff, auditors not understanding the business, head office sign offs, mergers and acquisitions, consolidations and breakups, inventory issues, property valuations etc etc.

OK, so now I am running a food store with $5 million in revenue and no qualified accountants. How am I supposed to all of a sudden (1) find $50,000 to $100,000 for an initial audit and (2) find qualified accountants for $150,000 to prepare the accounts?

I ask the government if auditing is so simple why are the audited accounts for public corporations presented to Parliament years late?

Does this 4 month audit apply to government corporations? If so then what is good for the goose is good for the gander.

If not, please stop harassing the business.

Honestly I don't know how ppl do business in the Bahamas.

I looked at the legislation, regulations and the Micky mouse looking Excel spread sheet for reconciliation of audited revenue to business licensee revenue. Are you kidding guys for a government with $2.5 billion in revenue to come up with such amateurish reports.

Please take a look at IRS and Revenue Canada tax reports and try to get some qualified ppl in government to create user friendly legislation.

If the IRS or Revenue Canada want an audit...trust me, they will come in and do it themselves and not overburden small business (and yes $5m in revenue is small) with an audit.

Something is wrong at Finance. Mr Wilsons justification for keeping his timeline is that its only 113 out of 45k businesses that have to be audited. A 1st grader could work out that the main challenge would be that the same resource challenged audit teams would have to review all 113 companies "at the same time", which would be impossible. Either Mr Wilson couldn't see that, which is a problem, or he could see it, which is another problem as a ginormous fine was attached to inability to complete an impossible task. Why would the govt do that? rhetorical.

The majority of Bahamian businesses have no structure, they function off the "genius" of the personality who started or currently runs it. I recall DAguilar saying exactly this, "*at my company we dont do all this* new fangled (my word) *'planning', we just get things done*".

In general, any idea that pops into the leader's head is immediately actioned. No time to listen to all this "*book learning*". Thats how the govt runs and thats how Bahamian businesses run, thats why they will have a huge problem with this audit. Thats why they have so many errors. After Dorian I recall one prominent individual making efforts to go outside the country to find out how to create a disaster management plan for businesses as if it was some foreign thing that nobody had ever heard of..... No structure, completely unaware that structure exists

contrast thst to how international organizations with institutional knowledge run, and its not that they dont make mistakes, the process is more orderly with less knee jerking. Bill Gates once said, paraphrasing, *at Microsoft we get alot of good ideas, we select the ones with greatest impact*. Structure

Great point John.

When I was in business the Big 4 accounting firm asked us if we could change our year end to June 30 so we don’t collide with the financial institutions December 31 year end. The auditors called it their “busy season”.

We also need to align our year end with our foreign partners.

The choice of year end was driven be business considerations. Not taxes.

When taxes become too harsh or burdensome, the average business or citizens who will normally pay taxes will start seeking ways to avoid and even evade taxes. When the government cracks down even more, some business owners would chose to exit the business economy rather than stay and fight a loosing battle or end up with a tarnished name or reputation. Government records will show that Tge BaHAMAS is currently experiencing one of the highest rates of business closings/failures even in what is supposed to be a booming economy. Two factors: increased government taxing and requirements and Ine e-commerce or internet market. Something is really wrong when someone is operating a business with a $5million turnover and they can’t net profit 3 percent.

Businesses should just shut down to avoid being bled to death by a government that is now in cahoots with greedy public accountants.

It is not just the greedy public accountants but guess who is really behind this financial assault in Bahamians and Bahamian businesses. Turn north and look left by damn it

Where does this end, more, more, more taxes and regulations. Unfortunately, I'm very close to shut down.

Suggest you shut down and stop loosing money.

Too much money from the IMF, OECD and World Bank propping up our $11.5 billion debt … these global foreign beaurocrats and thier local counterparts traveling around the world first class and living in the best hotels wouldn’t know the living hell running a small business in the 242 if it hit them in the face.

They think small business can be soaked to pay off the $11.5 debt and that they are hiding billions of dollars which the audits will discover.

By the time the Bahamas defaults in 10 years they all will be long retired and the ppl will blame the FNM.

This is what Mr Wilson fails to see and his boss fails to recognize. His hard nose approach is looked at as him being a man who gets things done. They fail to link the deleterious impact of their "*bold*" actions. Exponential prices, less spending, business closure, lower govt revenue

Me too. My business is close to shut down. I do not think anyone realizes how many business are just teetering on shutdown. The regulations are becoming even more killer than the taxes. Sucking up so many limited management resources and limited talented labour. Instead of growing and expanding your business your time is consumed dealing with government BS. ;.gov.bs ror government websites and the BS part says it all. This is not FNM or PLP thing. The whole thing is rotten to the core.

If you look around, practically all the businesses in the country that are successful are either politically connected or they have some advantages in the market that gives them a great competitive advantage. For example practically all foreign owned businesses, especially in the tourism industry, have tax concessions and exemptions that give them control in the market and also ‘guaranteed profits.’ In the retail market, the largest and most profitable businesses are owned by or in partnership with politicians or they linked to an industry, like shipping that gives them a competitive advantage. Some businesses control certain brands or labels that give them exclusivity in the market, so they are, in tact a monopoly. The point is, many politicians go the parliament and pass tax laws that they know are to burdensome for Bahamians and businesses to pay. And the higher taxes are an advantage to them and their cronies because they already have a loop in a lace top avoid or evade those taxes. Hence The Bahamas where all the traditional bu are failing. Hence Tye Bahamas where a fast food sandwich/ meal cost as much as a full corona Rae meal. Hence a Bahamas where a politician goes into government living in a rented apartment and comes out of government several years later with a home and several apartments in rent. Hence the amount of taxes these government coollects doesn’t equal the good and services produced by government, plus an ever increasing national debt. Where is the Bahamian peoples’ money?

The Bahamian people MUST take this government to task about the sovereign wealth fund and why was it changed to become almost like someone’s personal private bank account. How much revenue was received from carbon credits and where is the funds? One politician was in the international arena claiming this government is trying to increase the carbon credit revenue to $100 Billion. So how much is it now and where is the Bahamian peoples money. Why are Bahamian people being taxed ever more and more whilst the government is getting more and more revenue

Anyone who has been involved in an audit knows this will not work. Not a single SOE will have audits done in time so they will have to be exempt, which means all companies should be I assume this business community has decided that come June Government will have no choice but to extend or get rid of this, or they can fine all those companies who have not done it in time and see if any close.

This is corrupt Davis led PLP government is determined to shut down your business if you don't hand it over to one of their crony financial backers for mere pennies on the dollar of what it's actually worth.

And unfortunately most of the muck-a-muck financial backers of the corrupt Davis led PLP government are clueless on how to run a business which means many hard working employees of essentially stolen businesses soon find themselves without a job. A government that robs you of your business is a government that will soon be robbing you of any real estate you may own. Just a matter of time now.

The implementation of this measure needs to be pushed back by one year at least.It will give the businesses and accounting firms time to prepare for it. There is an acute shortage of accountants who do audits in this country. A former managing partner of a major firm here in the Bahamas said there was a constant turnover of staff in his firm. Bahamians are unaware of that. Audit is hard work. Some firms here in the Bahamas employ expats to assist in audits.

@This is Ours. The Minister of Finance is well aware of this law. This requirement was an amendment to the business licence act during the budget debate. He read and presented it in parliament. An accountant who watched the BICA presentation explained that to me.He told me what the Financial Secretary said.

1. The previous budget performance was reviewed by the analysts in the Ministry of Finance.
2. Meeting were held with the finance policy team and the budget team.
3. A policy paper was prepared and given to the Minister of Finance.
4. Brave Davis took that paper to cabinet and they supported these changes.The Attorney General office drafted these laws.

What is happening now is what Hubert Ingraham basically prophesied ten years or more ago.These changes are now being dictated by the IMF and the Bahamas international creditors.The Bahamas can no longer easily borrow money on the international market. There is a saying it een going,it coming.

So option #2, he's knowingly putting a fine on inability to complete an impossible task. This is a new tax on businesses finessed as a fine.

No other country has audited FS as part of the requirements. What's happening is Government does not trust the figures given to them, but does not want to have the expense of having their own audit team, so they are passing that cost onto every business over $5 million, which in turn will be passed onto every customer of theirs (which will be pretty much everyone). Next year the PM will be saying how greedy the merchants are whilst knowing Government is the cause of most of the increases.

Bingo!