Friday, August 23, 2024
By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
AN estimated three-quarters of companies with a turnover of $5m plus have requested extensions to submit their audits, according to Shunda Strachan, the Department of Inland Revenue’s acting director.
Speaking at the Office of the Prime Minister weekly press briefing, Ms Strachan said the remaining audited financials are expected by November and the new requirements have demonstrated the importance of large companies undergoing annual audits.
“The majority, I would say, probably about 75 percent of the businesses required extensions,” said Ms Strachan.
“We have given the extensions because this is the first time we are doing this as well and then there has been a challenge with sourcing auditors to do the work. So we expect the majority of them will be in by October, November, and so we’re comfortable with the ones that we have seen so far. We do know from the exercise that it was needed.
“The results of the first audits that we got in kind of it confirmed what we suspected, and that is big businesses really do need to engage somebody to have audits, not only for us, but for them as well. So it was really a learning experience for the businesses as well as us.”
She also revealed that although DIR was a ‘little short” in reaching its $1.6bn revenue collection goal for the last financial year, collection for July, the first month of the new fiscal year, exceeded its target by $16m.
“The revenue goals or forecasts, they are not easy goals and they require us doing different things for us to meet that $1.6 billion goal, it was $1.3b the last year,” said Ms Strachan.
“It wasn’t even in the billions the year before that and so the goals keep getting steeper and steeper, which means you have to do a whole lot more.
“Our budget for July was $138m and we brought in $154m. So, we’re so far first month out of the gate above target, which is a good thing.”
The Real Property Tax Act reforms passed to accompany the 2022-2023 Budget sought to “expand the exercise of the power of sale for tax arrears to all property except owner-occupied property beneficially owned by Bahamians”.
This made clear that the tax authorities cannot seize, and sell, Bahamian-owned residential property that the owners are living in.
Ms Strachan said exercising the power of sale orders has been a “very challenging initiative” but has sold three properties from the two property listings posted.
She said a third property listing will be published soon and will include about 70 percent of the properties.
Ms Strachan revealed that DIR was able to enter agreements with some property owners to pay their delinquent taxes and those listings have been removed.
“We also was able to enter agreements, even though, at first, I think you we would recall me saying we’re not doing any agreements. But of course, when you start looking at cases, and when you start looking at individual circumstances, sometimes we make concessions. We were pleased to enter payment arrangements with some property owners, and I’m happy to say that they are keeping their commitments.”
She added that the properties that will be re-listed will be assessed to ensure they are at current value.
“Those ones that they’re re advertising, we’re re advertising them because we want to ensure that the value that we previously had on those properties is a current value, especially with the Family Island properties, so three for now, but we expect that that number will pick up as we refine the process.”
Comments
DiverBelow says...
Simply amazing! Government expects business to comply with responsible requirements, YET they are UNABLE to meet theirs?
I'm referencing to, at minimum, the financial disclosures for Parliamentarians; to simply the payments of Power & Water invoices by govt agencies & groups; particularly to the payments of payrolls & debts due.
THEY EXPECT BUSINESS TO COMPLY, YET THEY DO NOT!!
Let's at least, see the Transparency Legislation in effect instead of a pipe dream.
Business & Govt's are Equal Partners in an Economy.
Parasitic, one sided, Take-All-You-Can While-You-Can, is an Economy Killer.
Posted 24 August 2024, 10:20 a.m. Suggest removal
moncurcool says...
Exactly.
Government does not follow the law but wants the business community to.
This country is just full of sh*t
Posted 24 August 2024, 9:02 p.m. Suggest removal
ThisIsOurs says...
"*The majority, I would say, probably about 75 percent of the businesses required extensions,” said Ms Strachan.We have given the extensions because this is the first time we are doing this as well and then there has been a challenge with sourcing auditors to do the work*"
Another ill thought out strongman policy from the FS
These statements are made as of who could have possibly known in January that there would be a shortage of auditors and many businesses would face challenges meeting the deadline.
**To come in August and report, "*guess what we found out*" is ridiculous. These are knowables**. We know how many firms have to complete audits, we know how many of these firms have a practice of completing annual audits vs those that dont. We can get a professional opinion from experienced auditors on the average time it would take to conduct an audit of each. We can get a professional opinion on how audits would be scheduled which phases for whom would run in parallel and which would have to be queued and we could tell almost to the exact month with some wiggle room added how long all of this would have taken
But no, let's shoot from the hip, again, and pick a nice date that we want to announce *everything is done*!
I see the hospital is barrelling ahead with the same plan as we go philosophy. It will lead to disastrous results one year in. Guaranteed. Who could have known it would be an extra billion dollars? Who knew we'd need to move the dialysis unit?
I saw more Pike trucks today, "fixing lines" and it just seems so crazy. Not only are we already paying them to fix lines, we gave them all our electrical grid assets on top of it. For what? Then Coleby tells us bills will go down after some engines are installed. When? Who doing the work? How long will it take? Are there any prerequisites for installing the engines? Are there a y risky technical challenges we might encounter. What are the milestones on this project. You cant hist throw your hands in the air and say "*well we had some dates we liked but things happened*". Can someone with a active mind please take over and report to the Bahamian people something that makes sense.
Posted 24 August 2024, 6:37 p.m. Suggest removal
ThisIsOurs says...
I should add, many said *months ago*, myself included, "*are there enough auditors*"? I dont understand why we have to create all these "*nice*", unrealistic goals and force workers into these impossible stressful situations with the blood bound at their heel
Posted 26 August 2024, 6:13 a.m. Suggest removal
Dawes says...
they have known there were not enough auditors from last year. All the audit firms were telling them this was not possible. They did not listen. The FS only wants the audited financials so he can work out what corporation tax will be (and then income tax).
Posted 26 August 2024, 10:11 a.m. Suggest removal
BONEFISH says...
@ This is Ours, you really do not understand public policy. This has nothing to do with the financial secretary. This audit requirement for firms with turnover of five million dollars was passed with the budget legislation of 2023. An accountant explained that to me. The reasons he gave are
1. The International Monetary Firm wants the government to provide more accurate financial information. They also propose that the Bahamas eventually move to an income tax.
2. The government needs to be sure that financial numbers presented by businesses
are accurate. The accounting firms through their audits will ensure that.
3. The accounting firms and BICA is on board with this.This audit requirement is a big money earner for them. At least two senior accountants admitted that off the record.
Your mentality like so many Bahamiams is why this country has lost ground. You oppose changes for the positive.This is why the Bahamas has lost ground in financial services to Cayman Islands and Bermuda.
Posted 27 August 2024, 10:41 a.m. Suggest removal
Dawes says...
How is a change that requires businesses to spend more money a positive. The business will just increase their price so we have to pay more.
Posted 28 August 2024, 9:37 a.m. Suggest removal
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